MARKET INSIGHTS APPLYING DATA SCIENCE TO BETTER UNDERSTAND OUR LOCAL MARKET The transition in the local market continues to build on the trends we reviewed last month. Interest rates continued their march upward through October and this has created an even greater chilling effect on the market. The transition is driving both buyers and sellers to adjust their strategies to optimize for this new season. Let’s take a closer look in this month’s Market Insights... A ll transaction data & data visualizations are based on information from Bright MLS for the period 1/1/2018 through 10/21/2022 Unless otherwise noted, data includes “Closed” transactions from Wicomico, Worcester, Somerset, Dorchester and Sussex Counties
PRICING
AVERAGE PRICE OF PROPERTIES SOLD BY COUNTY
Pricing has plateaued after the steep increases over the last three years. Reflexively, the expectation would be for prices to drop due to the increased inventory and shrinking pool of buyers, and it may with time, but at least for now, there is still sufficient demand to generally sustain the current pricing levels. Additional interest rate hikes would likely push the market to the tipping point and accelerate the turn downward in pricing. Two key metrics are highlighted below that further show how the market is evolving... SOLD PRICE VS. ASKING PRICE SELLER CONCESSIONS (% OF SALES PRICE)
In a hot market, sellers have more leverage and concessions are reduced to make offers as strong as possible. However, as another sign of a shift to a more balanced market, seller concessions are becoming more common and averaging higher amounts.
We saw in September that the sold price averaged just 97.4% of the asking price. This trend continued in October with this dropping to 96.8%, which is the lowest since mid-2020.
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