Wicomico Home Sales Up in May, Prices Rise

Salisbury MD Real Estate Sales Report for May 2023   May 2023 Salisbury MD Home Sales Statistics In May 2023, the median single-family home sales price in the Salisbury MD area real estate market was $255,000. This was up 5% from the median sales price last May. There were 109 homesales, up 7% from the same month last year. The average time on market was 1.1 months, up from 12 days in May 2022. Currently, there is a one-month 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 Mortgage rates well into the 6%-7% range didn’t dissuade Salisbury MD area home buyers from closing on over 100 homes in a month for the first time since September of 2022. Record low home inventory coupled with solid demand kept prices elevated and in line with March and April.   Conclusions for Home Sellers in Wicomico County Wicomico County homeowners looking to sell clearly have the data on their side. Homes priced correctly in Wicomico County will not only sell quickly but frequently after multiple offers. This scenario is most prevalent for listings priced under 500K.   June 2023 Salisbury MD Real Estate Outlook After an accurate projection for May, we’re expecting 95-100 homes to sell in June to close out the second quarter. A significant increase in prices is a strong possibility. Next week, the Fed (FOMC) will meet to discuss raising the Funds Rate or pause. Stay tuned for the Q2 Housing Report and Mid-Year Update over the next several weeks.   *Based on information from Coastal REALTORS® for the period 5/1/23 through 5/31/23 Information compiled by Vision Realty Group is deemed to be reliable but is not guaranteed. © BRIGHT MLS Copyright 2023    

Wicomico Home Sales Down Sharply in April, Prices Dip

Salisbury MD Real Estate Sales Report for April 2023   April 2023 Salisbury MD Home Sales Statistics In April 2023, the median single-family home sales price in the Salisbury MD area real estate market was $255,000. This was down 5% from the median sales price last April. There were 92 homesales, down 30% on the same month last year. The average time on market was 1.4 months, up from 24 days in April 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 After discussion in the March Sales Report, home inventory remains at around 100 units in Wicomico County. Salisbury MD area home buyers have grown accustomed to the idea of 6% mortgage rates as that’s what they’ll likely be facing for the remainder of the year. Unfortunately, there are far more buyers than there are available homes. The result is home prices maintaining their historical highs or even rising slightly as we saw in Q1.   Conclusions for Home Sellers in Wicomico County The tailwinds Wicomico County home sellers have enjoyed since 2017 continue. At the same time, homes not priced correctly are sitting on the market. Reductions are far more common now than at the sales peak of 2021. Today’s buyer is much more payment sensitive because of higher mortgage rates and consumer inflation.   May 2023 Salisbury MD Real Estate Outlook May home sales for the Salisbury MD area should come in around 90-95 units closed with a median price of around 260K. If this bears out, it would be comparable to last May. The first month of 100 units sold in 2023 is a possibility and would also be the first since September of last year. *Based on information from the Coastal Association of Realtors® for the period 4/1/23 through 4/30/23 Information compiled by Vision Realty Group is deemed to be reliable but is not guaranteed. © BRIGHT MLS Copyright 2023

Q1 Home Sales Decline in Wicomico County, Prices Steady

Salisbury MD Real Estate Q1 2023 Sales Report   Q1 2023 Housing Statistics                  For the period of January 1 through March 31 in the Salisbury MD area real estate market, there were 214 settlements on single-family housing units, down 24% from this time last year. The median sales price was$241,000, up 3% over the same period. Foreclosure and short-sale properties accounted for 3% of single-family home sales in the first quarter of 2023. This was up from 1% during the same period in 2022. *   Takeaways for Salisbury MD Area Home Buyers There are two drivers for the significant decrease in home sales in the Salisbury MD area. First, around this time last year, Jay Powell and the Federal Reserve began raising its short-term rates. Since then, the Fed has done so an additional eight times. The Fed Funds Rate indirectly affects mortgage rates for homes. That said, in the last twelve months rates on home loans have more than doubled. This has drastically decreased the purchasing power of many would-be home buyers and put them on the sidelines. Secondly, many homeowners who would sell in a more “normal” market are hesitant to trade the 3% loan they have locked in for one closer to 6%. The result of these two factors is not only lower demand but also lower supply. This is why home prices have not dropped in Wicomico County as the supply/demand balance has not shifted appreciably. Should mortgage rates drop into the 5% range by mid-year as many economists expect, more home buyers will get back into the market. Such a scenario would put upward pressure on home prices. In March alone, home prices were up 12% on a yearly basis.   Takeaways for Salisbury MD Area Home Sellers Wicomico County home buyers are more “rate sensitive” than ever, especially when dealing with record-high home prices. Home sellers in the Salisbury MD area would be wise to recognize this and price their homes accordingly. Multiple offers for properties are certainly making a comeback, but the local real estate market is not 2021 all over again in our opinion. The fundamentals are simply not the same. In fact, Q1 of 2023 produced the lowest home sales for the first quarter in seven years with the exception of Q1 of 2019.   What Lies Ahead for the Wicomico County Real Estate Market? The full impact of the combination of tight home inventory in Wicomico County and much higher interest rates is becoming fully evident. Our Q1 home sales projection came in significantly lower than expected as a result. For Q2 of 2023, home sales should rebound a bit to the tune of around 250 units closed by the end of June. We also expect prices to remain stable with the possibility of single-digit gains on a yearly basis. A softening labor market and Federal Reserve announcements will be factors in shaping the local housing market for the middle of the year. *Based on information from the Coastal Association of Realtors® for the period 1/1/23 through 3/31/23 Information compiled by Vision Realty Group is deemed to be reliable but is not guaranteed. © BRIGHT MLS Copyright 2023

March Home Sales Decline, Prices Up

Salisbury MD Real Estate Sales Report for March 2023   March 2023 Salisbury MD Home Sales Statistics   In March 2023, the median single-family home sales price in the Salisbury MD area real estate market was $258,500. This was up 12% from the median sales price last March. There were 74 home sales, down 25% from the same month last year. The average time on market was 22 days, down from 1.4 months in March 2022. Currently, there are 1.4 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 Persistent lack of supply is putting upward pressure on Salisbury MD area home prices. Available units in Wicomico County numbered just over 100 at the time of this writing. Now is the time of year when many buyers are looking (or begin looking again) after a fall/winter layoff. The supply crunch combined with record-high home prices and mortgage rates in the 6% range all make for a very challenging environment.   Conclusions for Home Sellers in Wicomico County As mortgage rates rose throughout 2022, we were of the mind that multiple offers on homes would be a thing of the past. However, with so few homes for sale this spring such a scenario is becoming commonplace once again. While it remains a strong seller’s market, it’s not quite like 2021. Wicomico County home sellers will need to be a bit more even-keeled with home pricing and negotiations as a result.   April 2023 Salisbury MD Real Estate Outlook Our March sales projection proved accurate. The median home sales price did increase a bit, but let’s not forget a single month doesn’t necessarily make a trend. For April, we’re expecting around 70 units to close. Tight inventory is certainly a trend, making for consistent sales numbers so far in 2023. Next week, we’ll publish the Q1 Housing Report. *Based on information from the Coastal Association of Realtors® for the period 3/1/23 through 3/31/23 Information compiled by Vision Realty Group is deemed to be reliable but is not guaranteed. © BRIGHT MLS Copyright 2023