Low inventory pushed prices up in five of six Eastern Shore markets tracked by Long & Foster Market Minute reports. The Eastern Shore region includes Worcester, Wicomico, Dorchester, Queen Anne’s, Talbot and Caroline counties.
Median sale prices rose 58 percent in Caroline County. Queen Anne’s and Talbot counties also saw dramatic increases – up 26 percent. The price appreciation correlated with double-digit reductions in inventory everywhere except Talbot County, where the number of homes on the market fell 5 percent. Homes in the region sold in 2.5 to 4.5 months on average, with Wicomico County seeing the lowest days on market average of 75 days.
“The Maryland Eastern Shore had a great month, with significant price increases,” said Gary Scott, president of Long & Foster Real Estate. “October was even better than we expected. It was a solid month for sales, listings and closings.”
The next year is expected to bring more of the same conditions that currently characterize the residential market: low inventory, low-but-increasing interest rates and strong demand.
Many homeowners bought or refinanced at historically low interest rates in recent years, and they won’t be eager to sell if the costs of borrowing go up, even as those entering the market hope to take advantage of still-low rates. Rising values might raise concerns about affordability, but they could also play a role in alleviating inventory challenges if more homeowners who bought before the downturn gain equity and decide to move.
“We believe the economic indicators will be very similar to what they have been,” Scott said. “Every month, more people in our regions are gaining equity because of increasing property values. So price appreciation is a positive, but it also has an adverse impact on affordability.”
The Long & Foster Market Minute is an overview of market statistics based on residential real estate transactions for more than 500 local areas and neighborhoods and over 100 counties in eight states. The easy-to-read, easy-to-share reports include information about each area’s units sold, active inventory, median sale prices, list to sold price ratio, days on market and more.
Information included in this report is based on data supplied by Metropolitan Regional Information System and Coastal Association of Realtors and their member associations of Realtors, which are not responsible for its accuracy. The reports include residential real estate transactions within specific geographic regions, not just Long & Foster sales, and they do not reflect all activity in the marketplace. Information contained in this report is deemed reliable but not guaranteed, should be independently verified, and does not constitute an opinion of MRIS, CAR or Long & Foster Real Estate.