Wicomico Home Sales Down Sharply in July, Prices Up

Salisbury MD Real Estate Sales Report for July 2023   July 2023 Salisbury MD Home Sales Statistics In July 2023, the median single-family home sales price in the Salisbury MD area real estate market was $265,000. This was up 6% from the median sales price last June. There were 80 homesales, down 25% for the same month last year. The average time on market was 1.1 months, up from 24 days in July 2022. Currently, there are 1.5 months of supply of homes in Wicomico County.* This is determined by how many homes are available divided by how many homes sold the previous month.   Conclusions for Wicomico County Home Buyers July set a record for home prices in Wicomico County while sales for the month came in at their lowest since 2013. The reason? For starters, low home inventory means fewer sales will occur. Prices will naturally stay elevated when many buyers are pursuing the same limited choices. With mortgage rates exceeding 7% for the first time since November and the traditional sales season winding down, we don’t expect this dynamic to change any time soon.   Conclusions for Home Sellers in Wicomico County Fed Chairman Jay Powell was quoted last summer saying that spiking mortgage rates would “reset” the “overheated” housing market. The results for Wicomico County? At the mid-point of 2023, home sales in the Salisbury MD area real estate market were down 21% on a yearly basis while prices were up 2%. Home prices in June set an all-time record. The Fed’s goal has only been partially achieved (fewer sales through lower demand). The Fed may have not counted on the supply side of the equation being choked off to the degree it has. Many would-be sellers have opted to stay put to avoid a 7% mortgage while keeping what they have at around 3%. In short, the majority of home listings locally are of the “must sell” variety such as job relocations, estate sales, transitioning to senior housing, etc.     August 2023 Salisbury MD Real Estate Outlook Our projection for July home sales proved to be on the money. September totals should come in at what may be another 10-year-low, or approximately 75 units closed. For pricing, a new record is a possibility. Check back in with us in 30 days.   *Based on information from the Coastal Association of Realtors® for the period 7/1/23 through 7/31/23 Information compiled by Vision Realty Group is deemed to be reliable, but is not guaranteed. © BRIGHT MLS Copyright 2023  

Wicomico County Mid-Year Housing Report 2023

Mid-Year Housing Report 2023   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.

Q2 Home Sales Fall, Prices Up

Salisbury MD Real Estate Q2 2023 Sales Report   Q2 2023 Housing Statistics                  For the period of April 1 through June 30 in Wicomico County, there were 307 settlements on single-family housing units, down 19% from this time last year. The median sales price was$270,000, up 6% over the same period. Foreclosure and short-sale properties accounted for 4% of single-family home sales in the second quarter of 2023. This was up from 3% during the same period in 2022. *    Takeaways for Salisbury MD Area Home Buyers The focus for many of today’s homebuyers in the Salisbury MD real estate market is on interest rates. The other side of the affordability equation is record-high home prices. As discussed in the Q1 Housing Report, record low housing supply is largely a result of mortgage rates more than doubling since early 2022. Fed Chairman Jay Powell has yet to “let off the gas” as inflation remains above their target goal of 2%. The result is mortgage rates over 6%, higher than many economists were predicting for mid-2023. Last week’s positive Consumer Price Index Report suggests Fed rate hikes may be nearing an end. Rate cuts may come to fruition in the next 2-3 quarters if target inflation numbers are achieved. While Federal Reserve rates and mortgage rates are not the same, they do tend to move in tandem. Any significant reduction in mortgage rates over time would bring some relief to area home buyers and open additional inventory. Home prices would stabilize as well under this scenario, but a sustained environment of prices falling more than the low single digits is unlikely.   Takeaways for Salisbury MD Area Home Sellers High home prices and strong buyer demand have many Wicomico County home sellers celebrating, at least to a degree. Current market conditions are a paradox, with increases in multiple offers and more price reductions happening at the same time. Strangely enough, it’s at all price points. There are three basic rules to follow for a successful home sale– Price Your Home Correctly Utilize A Strong Marketing Plan Don’t Confuse Rule #2 with Rule #1 With Q2 home sales running even with the second quarter of 2019 and 2020, they are a far cry from the glory days of 2021. Area homeowners going on the market need to recognize that.   What Lies Ahead for the Wicomico County Real Estate Market? Q2 home sales locally proved to be stronger than projected but we were spot on for the pricing metric. It’s our belief mortgage rates may have peaked, and area homeowners are adjusting to the realities of the current market. That said, Q3 should produce around 300 home sales with the median sales price stable in the 260K-270K range. Next week we’ll take a deeper dive into the market over the longer term when we publish the Mid-Year Update. *Based on information from the Coastal Association of Realtors® for the period 4/1/23 through 6/30/23 Information compiled by Vision Realty Group is deemed to be reliable but is not guaranteed. © BRIGHT MLS Copyright 2023

Record High Home Prices in June, Sales Decline

Salisbury MD Real Estate Sales Report for June 2023   June 2023 Salisbury MD Home Sales Statistics In June 2023, the median single-family home sales price in the Salisbury MD area real estate market was $285,000. This was up 14% from the median sales price last June. There were 96 homesales, down 34% for the same month last year. The average time on market was 1.2 months, up from 24 days in June 2022. Currently, there are 1.2 months of supply of homes in Wicomico County.* This is determined by how many homes are available divided by how many homes sold the previous month.   Conclusions for Wicomico County Home Buyers Wicomico County home prices have set a record high in spite of sales being down over 20% year to date. The flip side is June home sales totals were the lowest since 2019. While persistently high mortgage rates above 6% have priced many would-be buyers out of the market, record-low inventory has kept demand strong and pushed up prices.   Conclusions for Home Sellers in Wicomico County Area homeowners looking to sell continue to enjoy tailwinds in the market. A well-priced home in a desirable location will likely be under contract within a few days and possibly after multiple offers. Contact us for a confidential discussion on the value of your home.   July 2023 Salisbury MD Real Estate Outlook After nailing our June projection, we’re expecting 80-85 homes to sell in July. Another record for home prices is a possibility. In the next two weeks, we’ll be publishing the Q2 Housing Report and Mid-Year Update. *Based on information from the Coastal Association of Realtors® for the period 6/1/23 through 6/30/23 Information compiled by Vision Realty Group is deemed to be reliable but is not guaranteed. © BRIGHT MLS Copyright 2023