Salisbury MD Area Home Sales in 2013
There were 800 settlements on residential housing units in the Salisbury MD area and Wicomico County in 2013, an increase of 14% from 2012. The median sales price was $144,900, up 4% over the same period along with a 7% reduction in inventory. The average time on market for sold properties in the Salisbury MD area was 5 months. Foreclosures and short sale properties accounted for 26% of residential sales in 2013, down from 30% in 2012. The percentage of short sales fell by 33% versus last year, in part as more potential short sales were avoided as a result of the increase in home values and a slowly improving employment picture.
What the Salisbury MD Housing Market Can Expect
Interest rates will be a huge factor in the direction of the Salisbury MD area real estate market will take in 2014. Many will be watching to see if incoming Fed chair Janet Yellin will continue predecessor Ben Bernanke’s loose monetary policy of Quantitative Easing and to what extent. Consumer sentiment is another factor, which is closely tied to employment. Those who feel secure in their jobs are more confident in their home buying decisions, along with other major purchases. Employers will keep a close eye on the effects of Obamacare throughout the year, possibly influencing hiring decisions. Employees facing higher deductibles and premiums will take this into account and perhaps put off major purchases and reduce discretionary spending.
Salisbury MD Home Buyers and Sellers in 2014
For now, sellers of Salisbury MD area homes are seeing a welcome upswing in values as a result of lower inventories, favorable interest rates driving buyer competition and improving consumer sentiment. Potential Salisbury MD area home buyers run the risk of not buying before rates climb again, reducing their purchasing power. Typically in the Salisbury MD real estate market, we’ll see a ramping up of new listings in early February on through the spring selling season.
National Housing Market Outlook
In some areas, market activity has exceeded that of the boom years of less than a decade ago, leading some housing experts to believe real estate bubbles are forming in various markets. In states with rapidly growing economies like Texas and North Dakota, these concerns aren’t readily accepted as being serious. While speculation can occur in any market (and did especially in California, Nevada, Arizona and Florida back in the mid-2000s) many of these markets are seeing a legitimate demand for housing as the new construction sector has been robust after years of little activity. As long as tightened lending standards stay in place, it’s unlikely another national real estate bubble will occur. Administration policies, Fed decisions, congressional stalemates and November’s midterm elections will all weigh in on the national housing market throughout the year.
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Information compiled by Kennington Realty Inc. is deemed to be reliable, but is not guaranteed © 2014 MLS and FBS