State of the Salisbury MD Area Real Estate Market
As of June 30, there were 363 settlements on residential housing units in Salisbury Maryland and Wicomico County in 2014, down 4% from this time last year. The median sales price was $129,900, down 7% over the same period along with a 7% reduction in inventory.
Sales of foreclosed and short sale properties increased by 42% versus the first half of last year. Distressed inventory accounted for 37% of all residential sales, up from 26% over the same period in 2013. Investors have been the driving force behind this segment of the market as pointed out in the June 2014 Home Sales Report.
Housing in the U.S. at End of Second Quarter 2014
On the national level, many housing markets have seen improvement, especially in the existing homes sector. A recent report from the National Association of Realtors showed sales of existing single-family homes, townhomes, condos and co-ops reached a seasonally adjusted annual rate of 4.89 million, which marks a 4.9 percent increase from April’s rate of 4.66 million. Other positive indicators for the national housing market include-
- Sales prices showed marked increases. Specifically, the median existing home price was $213,400 in May, up 5.1 percent from a year earlier.
- Meanwhile, sales of homes priced at $1 million and above increased everywhere but the Midwest
- Total housing inventory at the end of May increased 2.2 percent to 2.28 million existing homes available for sale. That’s 6 percent higher than a year ago.
- At May’s sales rate, there’s a 5.6-month supply of homes for sale, which is close to the 6-month inventory that’s considered a balanced market between buyers and sellers.
Housing Outlook in Salisbury MD and the U.S. for the Second Half of 2014
Last week’s jobs report was encouraging to many analysts and markets. Positive economic reports will also weigh heavily on consumer confidence. When workers feel secure in their positions or have confidence in moving on to a better one, they are more likely to make major purchases such as homes.
Conventional wisdom indicated mortgage rates steadily creeping up in 2014, but it simply hasn’t happened, in spite of further Fed tapering of their bond purchase program. In fact, rates hit 12 month lows just last week. This may be what spurs indecisive prospective buyers into action.
At the same time, tensions in the Middle East and other regions can also impact prices of stocks, bonds and commodities, affecting consumer sentiment and ultimately, interest rates on mortgages. Check back often for regular updates!
Information compiled by Kennington Realty Inc. is deemed to be reliable, but is not guaranteed © 2014 MLS and FBS