Much of the Eastern Shore Real Estate Market Saw Rising Median Sale Prices in April

May 21, 2018

Market Minute Logo 2017 smallWith the exception of one area, the Eastern Shore real estate market saw rising median sale prices in April, according to the Long & Foster Market Minute reports. The Eastern Shore market includes Worcester, Wicomico, Dorchester, Queen Anne’s, Talbot and Caroline counties.

Eastern Shore Market Minute April 2018

Compared to April of last year, the number of homes sold in the Eastern Shore region decreased in many areas. Caroline County bucked the trend and experienced a 39 percent jump in homes sold, and Wicomico County experienced a modest 3 percent increase. Median sale prices rose many parts of the region, including by 10 percent in Wicomico County and by 8 percent in Queen Anne’s County.

Active inventory levels fell throughout the Eastern Shore region in April. The smallest decline was seen in Wicomico County, where active inventory dropped by 8 percent, while the largest decline was a 38 percent drop in Caroline County. Homes in the region are selling in about three to six months on average. Caroline County saw the lowest days on market average at 73 days.

“Although inventory has been declining across the country for three years, the Eastern Shore real estate market is in a relatively healthy place,” said Gary Scott, president of Long & Foster Real Estate. “Rising median sale prices cause some to worry that another real estate bubble may be on the horizon, but this market is very different than the one that led us into the recession.”

Scott said a number of factors made the pre-recession market susceptible, including the availability of credit and lack of regulations, the prevalence of adjustable rate mortgages, and home values that appreciated quickly in a very short time frame. Comparatively, it took 10 years of gradual increases for median sale prices to get to where they are now, he said.

The volatility of the stock market has resulted in many looking to the real estate market as a way to broaden their investment portfolio. Real estate investing is a great long-term strategy to build wealth that offers a number of benefits when planned well.

“There are a few key things to research and plan if you’re going to invest in real estate,” Scott said. “That includes trends in appreciation, vacancy rates, and supply and demand. You also need to establish clear goals and objectives.”

“Define your business rules and don’t deviate from them until it’s time to evaluate how your investments are performing,” he said. “Know what you can afford and what you can’t – consider the best case scenario, the worst case scenario and the most likely scenario. And have an appreciation and understanding that the real estate market changes.”

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.