Q4 2016 Housing Statistics for the Salisbury MD Area
For the period of October 1 through December 31, 2016, there were 244 settlements on single family housing units in the Salisbury MD area and Wicomico County, up 17% from this time last year.
The median sales price was $155,000, up 6% over the same period. Q4 inventory year over year was down 21%.
Takeaways for Salisbury MD Area Home Buyers
The big news for Salisbury MD area homebuyers is the lack of inventory, which is near a 10 year low in Wicomico County. Coupled with rising mortgage rates along with increasing prices, some would-be buyers will get priced out of the market.
It appears more and more that early to mid-2016 was the most optimal time in a decade to purchase a home. This was pointed out here, here and here, but all is not lost. Historical averages for mortgage rates are in the 6% range, so any loan rate that begins with a “4” is still very good. We believe inventory will increase in the next 30-90 days as we work through winter and the post-election fallout settles.
In any type of market, a prepared buyer will have the edge over the competition. Contact us for a no obligation conversation on how to be best positioned for your upcoming home purchase. We have plenty of past clients who vouch for our unique ability to represent Salisbury area home buyers like nobody else.
Takeaways for Salisbury MD Area Home Sellers
Current and would-be home sellers in the Salisbury MD area can be confident that market conditions are in their favor heading into early 2017. In fact, we’d have to go back to the middle of 2014 to find where neither home sales nor the median price increased.
The significant drop in sales of distressed properties in Wicomico County means better equity positions for homeowners, giving them more options when deciding to enter the market. Low inventory in the local real estate market means more competition from buyers for available homes, placing upward pressure on prices.
Year over year home price appreciation in the single digits is in line with historical averages, meaning there is little risk of returning to the real estate bubble seen a decade ago.
What Lies Ahead for the Salisbury MD Area Real Estate Market?
Despite the good momentum the Salisbury MD area real estate market is enjoying, we believe current inventory levels will impact Q1 of 2017 single family home sales , especially in January. Perhaps we are also a little gun shy after falling slightly short of our 4th quarter expectation, but think around 200 units will close in the first three months of the new year.
Certainly the upheaval in D.C. and the incoming Trump administration will be significant factors in shaping foreign and domestic policy and markets in the upcoming months. This in turn can dramatically effect stocks, bonds and commodities markets along with decision making by central bankers.
Next week we’ll publish the 2016 Year in Review for Salisbury MD area real estate. The preliminary research thus far indicates positive news for the Wicomico County housing market. Stay tuned!
Information compiled by Esham Real Estate Inc. is deemed to be reliable, but is not guaranteed © 2016 MLS and FBS
*Based on information from the Coastal Association of Realtors® for the period 10/1/16 through 12/31/16