MARKET INSIGHTS APPLYING DATA SCIENCE TO BETTER UNDERSTAND OUR LOCAL MARKET In this month’s issue, we will look back at what happened over the last 12 months in our local real estate market. We all know 2022 felt like a 2022 YEAR IN REVIEW rollercoaster, but what does the data show us about what really happened? And even more importantly, what can we learn from it? AAll transaction data & data visualizations are based on information from Bright MLS for the period 1/1/2018 to 12/31/2022 Unless otherwise noted, data includes “Closed” transactions from Wicomico, Worcester, Somerset, Dorchester and Sussex Counties
AVERAGE SOLD PRICE “Why?” and get to the root of what is really causing the trends. Because, ultimately, what we see is the result of the behaviors of buyers and sellers and understanding the nuances that drive this behavior enables better decisions in the future. # OF HOMES SOLD Let’s start with a review of the primary metrics in the real estate market: price and volume. Although this might be interesting, it’s not very useful unless we ask
The average price of a home stayed fairly flat through 2022. Sussex and Worcester counties saw a 5 – 7% increase after Jan/Feb/Mar, but it did not continue to rise. Wicomico, Somerset and Dorchester on the other hand stayed flat or even saw slight decreases in average pricing compared to the 1st quarter.
The number of homes sold continues to decline. Closings in the 4th Quarter decreased significantly compared to the rest of the year, down almost 20% compared to 1st Quarter, which is typically the weakest season. For comparison, the peak of the surge in sales hit 4,036 closings in Jul/Aug/Sep of 2020 – more than double Q4 ‘22.
CLOSINGS BY COUNTY
Compared to previous years, 2022 finished with fewer homes sold than 2018 and significantly less than the peak of activity in 2020/2021.
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