Salisbury MD Area Home Sales in 2015
There were 1013 settlements on residential housing units in the Salisbury MD area and Wicomico County in 2015, an increase of 12% from 2014. The median sales price was $144,000, up 3% over the same period along with a 2% increase in inventory.
The average time on market for properties sold in the Salisbury MD area last year was 3.7 months. Foreclosures and short sale properties accounted for 27% of residential sales in 2014, up from 24% in 2014.*
Salisbury MD Home Buyers in 2016
Home buyers in Wicomico County have reason to smile. While the Salisbury MD area real estate market is certainly not a “buyer’s market”, they can be confident moving forward knowing that residential sales are up 44% in the last three years, yet mortgage rates remain close to historic lows. Too, median prices for homes have remained relatively flat during this period (up 3%).
These market conditions have this author convinced that early 2016 may be the best time to purchase a Salisbury Maryland area home in a decade. There are signs that mortgages could be more expensive as the year progresses and home prices will creep up as well. Steady inventory and higher demand from home buyers will make this a reality in time.
Salisbury MD Home Sellers in 2016
Sellers of Salisbury Maryland area homes shouldn’t be hanging their heads either. The market is balanced and current inventory very reasonable, with about a 7 month supply of homes available.
With nearly 3 in 10 home sales in Wicomico County being distressed properties, this continues to be a drag on a steady, methodical 3-5% annual price appreciation that is indicative of the healthiest of real estate markets. Until we see sustained job and wage growth on the Lower Shore, sellers of homes in our area can expect more of the same.
What Can the Salisbury MD Housing Market Expect in 2016?
It wouldn’t be going out on a limb to predict another 10-12% increase in home sales (around 1,100 units) in the Salisbury area for 2016 along with a 1-3% increase in the median price if current trends stay on track and market fundamentals don’t drastically change.
Conventional wisdom tells us to expect interest rates for home loans to stay steady in the early part of 2016 and then gradually creep up throughout the remainder of the year. This author takes a more optimistic view on the rate curve once the current stock market
crash correction we are witnessing is factored in, regardless of what Janet Yellen says or does.
Nervous investors on Wall St. are moving capital into mortgage backed securities, which funds loans for home buyers. A larger pie would mean lower rates in a nutshell. That said, its conceivable mortgage rates could actually fall sometime during 2016.
The consequences of low oil prices, tensions in the Middle East, the suffocating effects of Obamacare and the administration’s executive orders will be on full display as the year unfolds, accentuated by the run up to the November election. These factors can dramatically impact consumer sentiment and their decisions regarding major purchases such as homes.
We’ll be here to break it all down during regular intervals (weekly, monthly, quarterly and bi-annually) so check back often for all things related to residential real estate for the Salisbury, Maryland area.
*Based on information from the Coastal Association of Realtors® for the period 1/1/15 through 12/31/15
Information compiled by Esham Real Estate Inc. is deemed to be reliable, but is not guaranteed © 2016 MLS and FBS