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Q1 Home Prices Up 13% in Wicomico County

Q1 2020 Housing Statistics for the Salisbury MD Area                  

For the period of January 1 through March 31, 2020, there were 232 settlements on single family housing units in the Salisbury MD area and Wicomico County, up 11% from this time last year. The median sales price was $178,400, up 13% over the same period. Q1 home inventory in the Salisbury MD Real Estate and Homes for SaleSalisbury MD area year over year was down 12%.

Foreclosure and short sale properties accounted for 8% of single family home sales in the first quarter of 2020, down from 16% during the same period in 2019. *

Takeaways for Salisbury MD Area Home Buyers

While the data shows a very strong quarter (the best Q1 since 2007) for Wicomico County home sales, the COVID-19 outbreak will usher in significant changes for Salisbury MD area home buyers. Interest rates remain near record lows but buyers can expect tightened lending standards on some loan programs. Too, exploding unemployment will eliminate some competing buyers and provide leverage when negotiating with sellers.

 

Takeaways for Salisbury MD Area Home Sellers

Salisbury MD area home sellers either on the market or soon to be should be very careful when digesting the Q1 data. Housing activity has slowed considerably since the Coronavirus pandemic. March home sales we’re not strongly influenced in the numbers as these transactions were well into the pipeline when the state of emergency was announced.

April is traditionally the best month to list a home in the Salisbury MD area but recent events have turned conventional wisdom on its head. In any market conditions, people will continue to buy and sell real estate. For today’s home seller, getting ahead of the coming shift will be critical in pricing your home, especially for those above 300K, where demand will soften first. Virtual walkthroughs and comprehensive digital marketing are required to make a home listing stand out for the greatest reach while respecting public health. Contact us for details on navigating the rapidly changing local housing market.

What Lies Ahead for the Salisbury MD Area Real Estate Market?

Our Q1 Salisbury MD area home sales projection was short by only two units. Doing so wasn’t a big challenge with consistent trends and reliable models to fall back on. Then, something called COVID-19 entered the picture. The impact on the local economy over the last five weeks has been nothing short of catastrophic. New inventory and properties going under contract Wicomico County during that time span was a fraction of historical activity.

Unless the state of emergency is lifted very soon, high unemployment for the remainder of the year is almost a certainty. We’re cautiously optimistic for 220 units to close by July 1 which would be a significant retraction from Q2 2019. The bigger question mark is about home prices. Will they start to slide back in Q2 of this year? Check in with us in mid-May for the April Sales Report where we’ll at least have a partial answer.

*Based on information from the Coastal Association of Realtors® for the period 1/1/20 through 3/31/20

Information compiled by Esham Real Estate, Inc. is deemed to be reliable, but is not guaranteed. © BRIGHT MLS Copyright 2020

 

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