Q1 2014 Housing Statistics for the Salisbury MD Area
For the period of January 1 through March 31, there were 166 settlements on residential housing units in Wicomico County, up 21% from this time last year. The median sales price was $129,900, down 9% over the same period along with a 12% reduction in inventory.
Foreclosed and short sale properties accounted for 35% of residential sales in the first quarter of 2014, up from 27% over the same period in 2013. Investors have been very active in the Salisbury MD area real estate market thus far in 2014, with distressed properties now accounting for only about 15% of available homes. This investor activity could also explain the drop in median prices from the first quarter of last year.
Conclusions for Salisbury MD Area Home Buyers
With tightened inventories, buyer competition is keen for desirable, well priced homes. Roughly a third of homes in the Salisbury MD area going under contract each week during the first quarter of 2014 have been on the market less than a month. Many others get offers after price reductions.
With mortgage rates showing signs of creeping up, any buyer who finds the right home should move quickly before another buyer moves on it or they get priced out of the market before locking their rate.
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. Fewer distressed homes for sale will buoy prices and support appraisals, so long as shadow inventory remains reasonable. So far this year, buyer demand has kept pace with new inventory.
The key for sellers in today’s market is pricing. (see above for buyers) A competitively priced home that’s well prepared for market will invariably sell before their neighbor’s home.
What Lies Ahead for the Salisbury MD Area Real Estate Market?
After a brutal winter for Maryland’s lower Eastern Shore, we enter the prime selling season. Improving weather has more and more sellers readying their homes for market. Two major factors in homes sales for the second quarter of 2014 will be interest rates and economic reports, especially unemployment.
The Federal Reserve has made strong statements about further scaling back its bond purchases (Quantitative Easing) if unemployment reaches certain levels in certain time frames. Often, just the words of Fed Chair Janet Yellen can move markets, which in turn can affect mortgage rates, for better or worse.
Locally, only potential buyers who feel secure with their own employment situations will be looking to purchase a home, so consumer sentiment will also play a role in how the second quarter of 2014 shapes up in the Salisbury MD area real estate market.
Information compiled by Kennington Realty Inc. is deemed to be reliable, but is not guaranteed © 2014 MLS and FBS