Salisbury MD Real Estate 2020 Year in Review
Salisbury MD Area Home Sales in 2020
There were 1294 home sales in the Salisbury MD real estate market in 2020, an increase of 10% from 2019. This fell just shy of the all-time record of 1299 homes sold in 2005. The median sales price was $190,000, up 9% over the same period.
The average time on market for properties sold in the Salisbury MD area last year was 2.1 months.
Salisbury MD Area Home Buyers in 2020
Wicomico County homebuyers were extremely active in the third and fourth quarters of 2020. Eager to take advantage of record low interest rates, monthly sales records fell in 4 of those 6 months. This pushed up home prices as a result with 11 out of the last 12 months showing year over year increases, with August being the only exception as prices we’re nearly unchanged. Federal Reserve action in early spring helped drive down mortgage rates, softening the blow of rising prices for Salisbury MD area homebuyers. At year’s end, home inventory was at near record lows.
Salisbury MD Area Home Sellers in 2020
Wicomico County homeowners enjoyed the best market conditions seen since 2006. Q1 and especially Q2 (from COVID) were soft for home sales but bounced back in a big way in Q3 as projected. Multiple offers on desirable, well priced properties we’re commonplace – leaving Salisbury MD home sellers in the driver’s seat when it came to negotiating. Higher home prices obviously increased proceeds and left some smiling faces.
What Can the Salisbury MD Area Housing Market Expect in 2021?
Even with our extensive research, the Wicomico County real housing market exceeded expectations significantly for both sales and prices. For 2021, we are less than bullish for certain. Recent ugly economic reports, a resurgence in COVID related lockdowns and political upheaval in D.C. are just a part of the equation.
The printing of 4-6T USD last year alone will inevitably lead to inflation, putting upward pressure on mortgage rates. The undeniable softening in labor markets over the last few months will not change appreciably for the better in our estimation. The results of these events won’t be seen or felt at the same time. We’re all but certain a shift in the Salisbury MD area real estate market will occur this year, likely in Q2 or Q3. Housing markets tend to run in 7 year cycles.
Locally, things began to turn around in earnest in 2013-14 and a clearer picture should be forming by the end of the first quarter. After a year with so much uncertainty, our projections for 2021 are more speculative than “normal”. We’re projecting Wicomico County home sales will go down 1-3% and prices up 2-4%. We wish each of you a healthy and prosperous 2021!
*Based on information from the Coastal Association of Realtors® for the period 1/1/20 through 12/31/20
Information compiled by Esham Real Estate, Inc. is deemed to be reliable, but is not guaranteed. © BRIGHT MLS Copyright 2021