Salisbury MD Real Estate Q3 2022 Sales Report
Q3 2022 Housing Statistics
For the period of July 1 through September 30 in Wicomico County there were 339 settlements on single family housing units, down 19% from this time last year. The median sales price was $251,500, up 7% over the same period. Year to date, home sales are down 14% while the median sales price is up 15%.
Foreclosure and short-sale properties accounted for 2% of single family home sales in the third quarter of 2022. This was down from 3% during the same period in 2021.*
Takeaways for Salisbury MD Area Home Buyers
The combination of record high home prices, inflation at 40 year highs and mortgage rates nearly doubling in 2022 has been very difficult for today’s buyer. Tight inventory remains a challenge as well. The silver lining is softer demand has some home sellers more negotiable. One creative solution is a rate buy down in lieu of a reduced price to make the monthly payment affordable for the buyer.
Takeaways for Salisbury MD Area Home Sellers
Fewer buyers in the local housing market obviously means less demand for homes. What about the “supply” side of the equation? Shouldn’t home prices be dropping? The Great Recession of 2008 is a distant memory for many people. This short video explains how we’re dealing with its impact some 14 years later.
To go more in-depth, unless a homeowner in a 3% mortgage has to move, are they likely to trade that in for a mortgage in the 6-7% range? The answer is obviously a “no” and they’ll stay put. That said, there is one more home that will not be going on the market any time soon. This should elaborate on why the supply side is all but unchanged in 2022 in spite of mortgage rates doubling.
What Lies Ahead for the Wicomico County Real Estate Market?
Our home sales projection for Q3 came in reasonably close but prices were a bit lower than expected. It’s our belief that Q4 will closely mirror the third quarter of 2022 in both metrics. If accurate, this will come in as the third-best Q4 in history and behind only 2020 and 2021.
*Based on information from the Coastal Association of Realtors® for the period 7/1/22 through 9/30/22
Information compiled by Vision Realty Group is deemed to be reliable but is not guaranteed. © BRIGHT MLS Copyright 2022