State of the Salisbury MD Area Real Estate Market
As of June 30, there were 576 settlements on residential housing units in Wicomico County in 2018, down 10% from this time last year. The median sales price was $152,250, up 4% over same period. Housing inventory was nearly unchanged. Foreclosures and short sales have accounted for 20% of residential sales in the Salisbury Maryland area this year.*
We are witnessing the undeniable laws of supply and demand within the Salisbury MD area real estate market. Low housing inventory (supply) and strong, steady numbers of would be home buyers (demand) have pushed up home prices in Wicomico County. Measuring only by single family home sales, both the first and second quarters of 2018 recorded an increase of 6% in the median sales price.
This supply and demand scenario explains why home prices are up while overall sales are down in our area as there simply aren’t enough homes for sale to satisfy the buyer demand. It also closely aligns with our projections from early this year. Sales of distressed properties continue to decline, highlighting the strength of the local housing market.
Housing Outlook in Salisbury MD for the Second Half of 2018
The recently released Q2 GDP report is welcome news for our local economy and the domestic economy as a whole. In any local real estate market, rising home prices can only go so far without being restrained by slower wage growth.
If wage growth fails to keep pace with home prices, then a slowdown in the real estate market is all but inevitable. This has happened sporadically in metro markets already across the country. When coupled with an environment of rising mortgage rates (still well under historical averages), the situation can be exacerbated.
From now through year’s end, roughly 550 residential units should sell in the Salisbury MD area unless we see an unexpected uptick in housing inventory. A spike in mortgage interest rates could dampen this projection. Other factors we’ll keep an eye on for the remainder of 2018 are stock market indexes, major labor and economic reports and the mid-term elections.
*Based on information from the Coastal Association of Realtors® for the period 1/1/18 through 6/30/18
Information compiled by Esham Real Estate, Inc. is deemed to be reliable, but is not guaranteed.