State of the Salisbury MD Area Real Estate Market
As of June 30, there were 502 settlements on residential housing units in Wicomico County in 2019, down 13% from this time last year. The median sales price was $165,000, up 8% over same period. Housing inventory was up 8% on a yearly basis as of the end of June. Foreclosures and short sales have accounted for 13% of residential sales in the Salisbury Maryland area this year, down from 20% at the mid-point of 2018. *
While home inventories have crept up recently in Wicomico County, the Salisbury MD area real estate market remains in favor of sellers. Homes priced 150K-200K remain the hottest segment of the market, with multiple offers being commonplace. The trend of lower home sales coupled with rising home prices began in earnest in early 2018 and continues today as demand has outstripped supply over the last 12 months. Low unemployment and rising wages have sustained the direction of the market.
Of particular note is the shrinking segment of distressed properties within the Salisbury MD area real estate market. As property values have risen and the economy has improved, fewer homeowners have negative equity or are losing their homes to foreclosure. This has resulted in a 43% plunge in sales of distressed properties in Wicomico County on a yearly basis and highlights the underlying strength of the local real estate market.
Housing Outlook in Salisbury MD for the Second Half of 2019
A sluggish Q1 transitioned into a solid Q2 in 2019 and we are seeing strong momentum heading into the halfway point of the third quarter. Slightly higher home inventory in Wicomico County along with interest rates near historic lows should have Salisbury MD home buyers actively looking.
The Federal Reserve has indicated a cut in the funds rate is a possibility after multiple increases over the last three years. Should this come to fruition, further declines in mortgage rates are a distinct possibility. Tight labor markets, records on Wall St. and trade tensions with China are all factors to watch for the next five months or so. We’re projecting around 600 residential units will sell from July through year’s end, or about a 20% increase over the first half of 2019.