Q3 2024 Sales Report- Salisbury MD Real Estate

Q3 2024 Housing Statistics    For the period of July 1 through September 30 in Wicomico County, there were 278 settlements on single family housing units, up 10% from Q3 of 2023.   The median sales price was $273,000, up 3% over the same period.   Foreclosure and short sale properties accounted for 4% of single-family home sales in the third quarter of 2024. This was up from 3% over the same period in 2023. *   Takeaways for Salisbury MD Area Home Buyers  A quarterly increase of 10% for home sales year over year may look impressive on paper. But let’s not forget that 2023 posted the lowest sales total for the third quarter since 2014 in Wicomico County. That said, 2024 was the second lowest for Q3 home sales in a decade. Mortgage rates dropping nearly a full percentage point over the quarter weren’t enough to pull the Salisbury MD area real estate market out of its sideways trajectory. Many local home buyers have simply opted to wait for mortgage rates to drop further, while others are on hold until after the election when the Fed meets next. With home inventory at a high not seen in several years and time on market increasing, it may make sense for some buyers to purchase now before rates drop further and higher demand pushes up home prices. Takeaways for Salisbury MD Area Home Sellers For reasons stated above, the leaner home buyer pool is more payment sensitive than ever. It’s imperative for Wicomico County home sellers to recognize that buyers have more homes to choose from, can afford to be patient, and will be firmer in their negotiations. The data backs this up. Year to date, home prices are up 2% versus this time in 2023 (less than the inflation rate). Home sales in the Salisbury MD area are up only 4% over the same period. This simply means that the market is flat, and the shift has been far more noticeable since mid-year. The price of a home remains the single most important factor in how long it will take to sell, or even if it sells at all. What Lies Ahead for the Wicomico County Real Estate Market?  Mortgage rates will continue to be the main driver of the housing market moving forward. Other factors are the election, unrest in the Middle East (think oil prices) and a wobbly labor market. The recent inflation report for the CPI (Consumer Price Index) came in higher than anticipated. In their upcoming November meeting, the Fed will need to determine if inflation has been truly tamed and how to respond. For Q4, we are far from bullish and expect mortgage rates to stay in the mid 6% range for the remainder of the year. About 240 units should close in Wicomico County. This would be on par with Q4 of 2023. *Based on information from the Coastal Association of Realtors® for the period 7/1/24 through 9/30/24 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 May 2024

May 2024 Salisbury MD Home Sales Statistics In May 2024, the median single family home sales price in the Salisbury MD area real estate market was $276,000. This was up 8% from the median sales price last March. There were 88 home sales, down 21% from the same month last year.                                The average time on market was 1.5 months, up from 1.1 months in May 2023.  Currently, there are 1.8 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.   Conclusions for Wicomico County Home Buyers As home prices continue to rise, area homebuyers are looking for relief in lower mortgage rates. However, a steady stream of negative inflation reports has the Federal Reserve pushing back the possibility of cuts in their Funds Rate to late this year, if at all. In fact, one Fed official recently mentioned the possibility of incremental rate hikes in the second half of this year. This was not widely reported in the MSM, likely out of fear of spooking the financial markets.  Looking back at our predictions for 2024 in the 2023 Year in Review, it’s becoming clear that even our conservative position on Fed action this year was overly optimistic. That said, transaction volume for the remainder of the year in the Salisbury MD area real estate market will be significantly lower than previous estimates. As consumer inflation marches on, it’s difficult for home buyers to save for their down payment and closing costs.  Our advice to our buyer clients is simple- buy the home you can afford now with the expectation that interest rates will drop at some point and provide an opportunity to refinance with a lower payment. When that happens, prices are certain to push higher and making affordability an even bigger challenge to those who wait.    Conclusions for Home Sellers in Wicomico County We’re seeing a distinction for days on market within Wicomico County. Homes listed over 450K are taking twice as long to go under contract on average versus homes listed under 450K. This makes sense in a high interest rate environment as there are simply far fewer buyers currently looking in the higher price points. In Chapter 5 of our new book, we cover the specifics of marketing a home in the “luxury market”.  With buyers experiencing acute “rate sensitivity” in all segments of the market, the single most important factor in a successful home sale is an accurate list price. Our list to sell ratios are one of the highest in the area and the days on market one of the lowest, meaning we’re adept at “threading the needle” to get our seller clients maximum proceeds in a short period of time.    June 2024 Salisbury MD Real Estate Outlook  May home sales came in lower than projected and at a median price higher than anticipated. June normally has one of the highest home sales totals in any given year. For this month, we’re thinking it will look much like April with the possibility of breaking 100 units sold to close out Q2.  *Based on information from the Coastal Association of Realtors® for the period 4/1/24 through 4/30/24 Information compiled by Vision Realty Group is deemed to be reliable, but is not guaranteed. © BRIGHT MLS Copyright 2024

Q1 2024 Sales Report- Salisbury MD Real Estate

Q1 2024 Housing Statistics      For the period of January 1 through March 31 in Wicomico County, there were 215 settlements on single family housing units, down 1% from Q1 of 2023.   The median sales price was $260,000, up 8% over the same period. Foreclosure and short sale properties accounted for 4% of single-family home sales in the first quarter of 2024. This was up from 3% during the same period in 2023. *    Takeaways for Salisbury MD Area Home Buyers This was the lowest total for area home sales for the first quarter since Q1 of 2019. Continued high consumer inflation meant higher mortgage rates in Q1 for home buyers in Wicomico County. As a result, home sales nearly mirrored what we saw for the same quarter in 2023. Inventory continues to lag, leaving fewer choices for buyers currently in the market. The inevitable result is higher home prices. We discussed the inventory issue in detail in the 2023 Year in Review.   Takeaways for Salisbury MD Area Home Sellers Area homeowners looking to move can proceed with confidence knowing that with only 2 months of inventory, it remains a seller’s market. This should be tempered a bit, however, with the realization that today’s buyer is extremely rate and payment sensitive. They also tend to move very deliberately, pursuing properties they deem are priced correctly, while requests for closing cost assistance are becoming more common.   What Lies Ahead for the Wicomico County Real Estate Market? Our Q1 projection fell a little short on both sales and prices. The odds of mortgage rates declining appreciably in the next three months go down with each new negative inflation report. That said, little relief is in sight for home buyers hoping to close by the end of June. We’re thinking around 280 units will sell in Wicomico County in Q2, while the median home price should stay consistent around 260K. *Based on information from the Coastal Association of Realtors® for the period 1/1/24 through 3/31/24 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 March 2024

March 2024 Salisbury MD Home Sales Statistics   In March 2024, the median single family home sales price in the Salisbury MD area real estate market was $263,000. This was up 3% from the median sales price last March. There were 78 home sales, unchanged from the same month last year.                               The average time on market was 1.3 months, down from 1.4 months in March 2023.  Currently, there are 1.8 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.     Conclusions for Wicomico County Home Buyers   The Salisbury MD area real estate market is moving “sideways”, nearly in lockstep with mortgage rates. The evidence of this comes from March home sales and prices year over year being nearly unchanged. Some economists were predicting Fed rate cuts for as early as March. This did not come to pass after a series of inflation reports were released that gave the Fed no reason to cut its Funds Rate just yet. The odds of a June rate cut that was previously widely expected keep shrinking as well. This means that today’s home buyer shouldn’t expect much relief in mortgage rates for the foreseeable future.     Conclusions for Home Sellers in Wicomico County Home inventory shrank a bit since the February Sales Report was published, meaning more competition for homes on the market in Wicomico County. An accurate list price remains a critical component to a successful home sale. With buyers facing high home prices, continued inflation, and elevated interest rates, we’re seeing more offers requesting closing cost assistance. Contact us for details on the strategies we use to help our seller clients to navigate the ever-changing real estate landscape.     April 2024 Salisbury MD Real Estate Outlook We nailed our March sales projection. For April, we’re expecting around 90 units to close by the end of the month. We may see a record for April home prices. Check in with us next week for the Q1 Housing Report.   *Based on information from the Coastal Association of Realtors® for the period 3/1/24 through 3/31/24   Information compiled by Vision Realty Group is deemed to be reliable, but is not guaranteed. © BRIGHT MLS Copyright 2024