For the period of October 1 through December 31, there were 163 settlements on residential housing units in Wicomico County, up 33% from this time last year. The median sales price was $164,000, up 17% over the same period along with an 8% reduction in inventory. Foreclosed and short sale properties accounted for 31% of residential sales in the fourth quarter of 2013, down from 34% over the same period in 2012.
Conclusions for Salisbury MD Area Real Estate Buyers
For those currently looking to buy in the Salisbury MD real estate market, time may not be on your side. The general consensus favors rising mortgage rates in 2014, but tempered by the expectation they will remain below historical averages for the year. When combined with the increase in prices we just saw in the fourth quarter, it may be wise for prospective Salisbury MD home buyers to jump off the fence before affordability further erodes.
Conclusions for Salisbury MD Home Sellers
Home sellers in the Salisbury MD real estate market have reason to be encouraged as lower inventory tends to put upward pressure on prices, which we certainly saw in the last quarter. This could possibly be offset with more foreclosed properties being placed on the market by banks who seek to get distressed assets off their books in a more bullish environment. Increased home values and an improving employment market should keep some would be sellers of short sales in their homes. In fact, short sales dropped from 16% of all residential sales in the fourth quarter of 2012 to only 9% in the fourth quarter of last year.
What Lies Ahead for the Salisbury MD Area Real Estate Market?
Market watchers across the country will keep a close eye on the actions of the Federal Reserve. Much of the recent “tapering” news of the Fed’s reduction of purchases of mortgage backed securities was already priced in before the Fed meeting in mid-December. Economic reports will receive plenty of scrutiny as well along with consumer sentiment playing a role. Markets of all types abhor instability and any indication positive or negative with regard to that has a huge bearing on which direction they will take. Locally, expansion of employers such as Jubilant Cadista and Salisbury University are steps in the right direction for the Salisbury MD area housing market.
Information compiled by Kennington Realty Inc. is deemed to be reliable, but is not guaranteed © 2014 MLS and FBS