Salisbury MD Real Estate Mid-Year Housing Report 2020
State of the Salisbury MD Area Real Estate Market
As of June 30, there were 528 settlements on residential housing units in Wicomico County in 2020, up 2% from this time last year. The median sales price in the Salisbury MD real estate market was $186,100, up 13% over same period.
Housing inventory was down 42% on a yearly basis as of the end of June. Foreclosures and short sales have accounted for 9% of residential sales in the Wicomico County this year, down from 13% at the mid-point of 2019. *
Of particular note in the above statistics is the plunge in home inventory in the Salisbury MD area. Such a drastic cut in supply will always lead to an increase in prices- even if demand is stable. We’re now at less than two months of inventory, a level not seen since 2005-2006. In contrast, inventory was pushing 1000 units in 2009-2010 which is quadruple that of today’s market.
With mortgage rates at 50 year lows, this has thrown fuel on the fire. After a solid Q1, we were expecting a soft Q2 in light of the COVID-19 outbreak. In theory, we were partially correct as home sales fell significantly in April and May only to see a massive rebound in June.
Housing Outlook in Salisbury MD for the Second Half of 2020
For July-December, we’re projecting close to 600 home sales in the Salisbury MD area. In spite of COVID related high unemployment, many buyers who temporarily dropped out of the market are back to work and have actively resumed their home search.
Much of supply of homes we would normally expect to see go on the market in the spring will be pushed off to Q3 as the local economy reopens. Already July and August are looking to be months with 100+ home sales in Wicomico County. An increase in the median sales price of 10-12% on a yearly basis is expected for the remainder of 2020.
The Fed has made its position clear on short term rates. Couple that with trillions in stimulus going to Wall Street and a rebounding stock market, mortgage rates should remain steady for the next several months. This leaves unemployment rates, COVID related influences and November’s general election as the main factors to shape the Salisbury MD area real estate market through year’s end.
*Based on information from the Coastal Association of Realtors® for the period 1/1/20 through 6/30/20
Information compiled by Esham Real Estate, Inc. is deemed to be reliable, but is not guaranteed.