State of the Salisbury MD Area Real Estate Market

As of June 30, there were 525 settlements on residential housing units in Wicomico County in 2023, down 21% from this time last year. The median sales price in the Salisbury MD real estatemarket was $255,000, up 2% over the same period. Foreclosures and short sales have accounted for 4% of residential sales in the Salisbury MD area real estate market this year, up from 2% at the mid-point of 2022. *

In our 2022 Year in Review, we projected that both home sales and home prices would fall in 2023. Halfway through, we were half right. The other part we got wrong was the degree that home sales would fall with the belief that 2023 would be a rebound year. Instead, inflation has yet to be tamed, meaning mortgage rates are still more than double what they were during the market’s sales peak in 2021. Looking back to the mid-point of 2021, Wicomico County home sales have fallen 27% during that period while prices spiked a staggering 24%. Just last month, home prices set an all-time record locally.

Housing Outlook in Salisbury MD for the Second Half of 2023

Let’s remember that 6 months does not equal a year, just the same as Q2 was significantly better than Q1 in terms of home sales and prices on a yearly basis. It’s our contention that both area homeowners looking to sell and buyers in the market have accepted current market conditions as “the way things are”.

The sticker shock of rapidly rising mortgage rates and increasing home prices seen in 2022 has worn off. The Federal Reserve has signaled that two 25 basis point rate increases are likely this year and then standing pat if target inflation goals are reached. At least one hike will be priced in and possibly the second, meaning that mortgage rates may not move much after these decisions.

All that said, we’re expecting around 575 homes will sell in July through December. Prices should remain stable at near record highs or around 5% above the second half of 2022. Fed announcements, Consumer Price Inflation announcements, and jobs reports from the Department of Labor will be the key drivers shaping the Salisbury MD area real estate market for the remainder of the year.

*Based on information from the Coastal Association of Realtors^® for the period 1/1/23 through 6/30/23

Information compiled by Vision Realty Group is deemed to be reliable but is not guaranteed.