Salisbury MD Real Estate Sales Report for August 2024

August 2024 Salisbury MD Home Sales Statistics In August 2024, the median single family home sales price in the Salisbury MD area real estate market was $265,000, unchanged from the median sales price last August. There were 89 home sales, down 8% from the same month last year.                              The average time on market was 1.3 months, up from 24 days in August 2023.  Currently, there are 2.1 months of supply of homes in Wicomico County. * This is determined by the number of homes available divided by the number of homes sold the previous month. Homes Sold in Wicomico County August 2024  Conclusions for Wicomico County Home Buyers  The recent 50 BPS rate cut by the Federal Reserve was big news in financial markets. The consensus was for a 25 BPS cut, which was likely “baked in” to current mortgage rates. Salisbury MD area homebuyers would be wise to watch for rate movement in the coming weeks. What else did we learn about the Fed decision? The main thrust for the half percent cut is that the Fed lacks confidence in the economy as the last two Funds rate cuts of this magnitude immediately preceded a recession. In short, the direction of the economy could be good news for home buyers in terms of affordability, at least in the short term. Conclusions for Home Sellers in Wicomico County With interest rates moderating, buyer demand will increase. Longer term, upward pressure on home prices is inevitable if mortgage rates trend down throughout next year. Year to date, the median sales price of a home in Wicomico County is up only 2% (less than the rate of inflation) from the same period in 2023. Several more Fed rate cuts will bring more balance to the market in terms of “latent inventory” as there are many would be home sellers who would make a move with mortgage rates near 5% but not at 7 or 8%. More supply would partially offset the increase in home prices. Contact us for a detailed conversation on the specifics of your situation. September 2024 Salisbury MD Real Estate Outlook  August home sales came in slightly higher than expected. September should be comparable to September of last year, with about 75-80 units sold to close out Q3. Payroll and jobs reports to be released on October 3rd and 4th will provide additional guidance on the direction of the economy and housing markets both nationally and locally. *Based on information from the Coastal Association of Realtors® for the period 8/1/24 through 8/31/24 Information compiled by Vision Realty Group is deemed to be reliable, but is not guaranteed. © BRIGHT MLS Copyright 2024

Salisbury MD Real Estate Sales Report for July 2024

July 2024 Salisbury MD Home Sales Statistics In July 2024, the median single family home sales price in the Salisbury MD area real estate market was $270,000. This was up 2% from the median sales price last July. There were 111 home sales, up 39% from the same month last year. The average time on market was 1.3 months, up from 1.1 months in July 2023.  Currently, there are 1.6 months of supply of homes in Wicomico County. * This is determined by the number of homes available divided by the number of homes sold the previous month. Homes Sold in Wicomico County July 2024   Conclusions for Wicomico County Home Buyers It appears June home prices dropping in Wicomico County were an anomaly, especially when considered against the data from Q2 and January-July. While it didn’t impact July home sales, the dismal jobs report for last month released on August 2nd triggered a massive sell-off on Wall Street, pushing down mortgage rates to a low for the year. Subsequent positive inflation reports have many economists predicting a 100% probability of the Federal Reserve cutting its funds rate by .25% after their next meeting on September 17-18. A few are projecting a .5% rate cut, which we believe to be highly unlikely. Any downward pressure on mortgage rates is welcomed by local home buyers, regardless of the catalyst behind it.   Conclusions for Home Sellers in Wicomico County Imminent action by the Fed would be good news for Salisbury MD area home sellers as well. Not only would their next home be more affordable, but additional inventory should also open with any significant reduction in mortgage rates. There are scores of local would-be sellers just waiting for their move to make financial sense. For those curious about their equity position, contact us for a no obligation, zero pressure conversation about the value of your home.   August 2024 Salisbury MD Real Estate Outlook After nailing our July projection, we’re expecting August to be much slower to the tune of around 80 units closed before Labor Day weekend. Should this prove to be accurate, it would be the lowest sales total for the month since August of 2013.    *Based on information from the Coastal Association of Realtors® for the period 7/1/24 through 7/31/24 Information compiled by Vision Realty Group is deemed to be reliable, but is not guaranteed. © BRIGHT MLS Copyright 2024

Mid-Year 2024 Housing Report 

State of the Salisbury MD Area Real Estate Market  As of June 30, there were 529 settlements on residential housing units in Wicomico County in 2024, unchanged from this time last year. The median sales price in the Salisbury MD real estate market was $264,000, up 4% over same period. Foreclosures and short sales have accounted for 4% of residential sales in the Salisbury MD area real estate market this year, unchanged the mid-point of 2023.  In the Q2 Housing Report, we discussed the “sideways” trajectory the Wicomico County housing market, brought on by high mortgage rates and stubbornly high consumer inflation. Looking back 6 months to the 2023 Year in Review, our prediction for home prices in the Salisbury MD has been fairly accurate year to date. We would need to see significant action by the Fed in Q3 and Q4 for home sales to spike. The culprit goes back to inflation, however. When target inflation levels are achieved, the Fed will cut its funds rate and mortgage rates should follow. More buyers will enter the market and home sales will go up as a result.   Housing Outlook in Salisbury MD for the Second Half of 2024  Many industry economists believe the Fed will cut rates twice this year, once in September and once in December. We’re not as bullish but are predicting a single rate cut just after the November election. Any relief in mortgage rates would be welcomed by Wicomico County homebuyers but that relief would likely be short lived. As more buyers enter the market, upward price pressure is inevitable but can take a few months to be realized in the data.   Around 575-600 homes should sell in Wicomico County by the end of the year, with prices up an additional 1-3% over where they are currently. We’ll be watching the Federal Reserve, domestic labor market, Consumer Price Index, the possibility of a regional conflict in the Middle East and the November election as critical factors shaping the Salisbury MD area housing market for the remainder of the year. *Based on information from the Coastal Association of Realtors® for the period 1/1/24 through 6/30/24  Information compiled by Vision Realty Group is deemed to be reliable but is not guaranteed.    

Q2 2024 Sales Report- Salisbury MD Real Estate

Q2 2024 Housing Statistics        For the period of April 1 through June 30 in Wicomico County, there were 313 settlements on single family housing units, up 1% from Q2 of 2023.   The median sales price was $265,000, down 2% over the same period. Foreclosure and short sale properties accounted for 4% of single-family home sales in the second quarter of 2024. This was unchanged from the same period in 2023. *   Takeaways for Salisbury MD Area Home Buyers  Federal Reserve Chair Jay Powell has achieved his stated goal of “cooling off an overheated housing market”. (something the Fed created themselves, but I digress) Since mid-year of 2022, Wicomico County home sales have more less gone “sideways”. Home prices continued to climb until now as high consumer inflation and mortgage rates at nearly 7% have cooled demand. The silver lining may be 1-2 rate cuts by the Fed by year’s end with more expected in 2025. Should this come to pass, more local buyers will be in the market and the increase in demand will inevitably push Salisbury MD area home prices up once again. Takeaways for Salisbury MD Area Home Sellers  Despite the challenges described above, it remains a seller’s market in Wicomico County. Homes are taking a little longer to sell and prices are flat, however. Area homeowners should be armed with this information before going on the market. Our new book  goes into detail on pricing a home. We’ll send it free, including shipping! What Lies Ahead for the Wicomico County Real Estate Market?  Our Q2 projection  proved better than expected, buoyed by a strong June. The prospect of Fed action after the FOMC meeting in September has many economists expecting a solid Q3 for the U.S. housing market. We’re thinking a rate cut is more likely in November just after the election. All that said, around 340 units closed in Q3 would put us on par with Q3 of 2022. Next week, we’ll publish the Mid-Year Update so check back in with us. *Based on information from the Coastal Association of Realtors® for the period 4/1/24 through 6/30/24 Information compiled by Vision Realty Group is deemed to be reliable but is not guaranteed. © BRIGHT MLS Copyright 2024