Fourth Quarter 2015 Home Sales Report

Q4 2015 Housing Statistics for the Salisbury MD Area                  

For the period of October 1 through December 31, 2015, there were 208 settlements on single family housing units in the Salisbury MD area and Salisbury MD Real Estate and Homes for SaleWicomico County, up 1% from this time last year.

The median sales price was $145,500, down 2% over the same period along with a 2% increase in
inventory.

Foreclosure and short sale properties accounted for 27% of single family home sales in the fourth quarter of 2015, unchanged from the same period in 2014. *

 

Takeaways for Salisbury MD Area Home Buyers

The theme Salisbury MD area home buyers can apply to Q4 housing numbers is “stability”. With statistics nearly mirroring those we saw in the last quarter of 2014, it’s safe to say our local housing market is on solid ground as last quarter’s total sales came close to our Q3 prediction.

Many would-be Salisbury Maryland area home buyers have been “on the fence” as to whether now is a good time to buy. Stable inventory, low home prices and brisk sales activity combined with low mortgage rates make this possibly the best market conditions prospective buyers will see for a significant length of time. In our professional opinion, 2016 is the optimal time to pull the trigger on your next home.

 

Takeaways for Salisbury MD Area Home Sellers

This same market stability will benefit Salisbury Maryland area home sellers as well. Arriving at an accurate list price and determining equity position will be important assets when moving forward with decisions on subsequent home purchases, whether it’s in the Salisbury area or not.

The percentage of foreclosures and short sales represented in total housing sales for Wicomico County remains stubbornly high and continues to be a drag on overall median home prices. Distressed property sales didn’t get worse in 2015, but they didn’t get better either. This trend will continue until we see both sustained job and wage growth on the Lower Shore.

 

What Lies Ahead for the Salisbury MD Area Real Estate Market?

Recent headlines were filled with ink regarding the Fed decision to raise its funds rate for the first time in a decade, (the rate banks charge each other to borrow money) while mortgage lenders took it in stride. The relationship between the two is not mutually exclusive as one deals with short term rates and the other long term rates.

News of weak economic reports from China has Wall Street on edge and the Dow had a rocky road during the last few months. This volatility will push some investors into a “flight to safety” to domestic bonds, which make up MBS or mortgage backed securities. This is the pool of money lenders use to provide home buyers with their loans. The more money that is available the lower the yields will be to investors and ultimately lower rates for home buyers.

Beyond that, we’ll see the Commerce Department’s release of the December job’s report this Friday. Wall Street’s and the Fed’s reaction will likely give some insight on the direction of mortgage rates in the near term. Many Fed watchers refuse to look past these monthly jobs reports and at the best indication of the health of the labor market- the “U6” numbers.

These U6 reports haven’t been complimentary to administration polices for the last 7 years as a rule and are summarily swept under the rug by a sympathetic media complex. They also explain very succinctly why the “recovery” is so fragile and wages are stagnant, but facts tend not to sell as well as sensationalism.

Check in frequently for the most in depth analysis of Salisbury Maryland real estate. We wish each of you a healthy and prosperous 2016!

 

Information compiled by Esham Real Estate  Inc. is deemed to be reliable, but is not guaranteed © 2016 MLS and FBS

*Based on information from the Coastal Association of Realtors® for the period 10/1/15 through 12/31/15

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