LOWER EASTERN SHORE, MD – Interest rates have been rising steadily and we are seeing a slowdown in the market because of that. Between rising costs of homes and now higher interest rates buyers, especially first-time buyers, are having a harder time finding and qualifying for their dream home.
The median home price is 22.7% higher than it was in May 2021 and up 1.9% from last month April 2022. Individually the median home price was $390,000 in Worcester, $241,990 in Wicomico, and $226,00 in Somerset. We currently have only 420 active listings in the lower three counties compared to 532 in May 2021 and 1104 in May 2020 when the pandemic began.
In all three counties throughout May, new settlements were down 15.8% compared to the same time last year. Individually, new settlements throughout May were up by 63.6% in Somerset and down 29% in Wicomico, and 15.5% in Worcester.
New listings in May were down 12.8% compared to the same time last year in all three counties. Individually, new listings were down by 9.7% in Worcester, 22.4% in Wicomico, and up 2.6% in Somerset from May of 2021.
Active listings in all three counties were down by 21.1% from May of 2021. Individually, there were 233 active listings in Worcester, 117 in Wicomico, and 70 in Somerset. The median days on market for May 2022 was 10 which was up 42.9% from May of 2021.
“Due to rising interest rates, we are starting to see a real change in the market,” said Coastal Association of REALTORS® President Grace Masten. “For the last two years, we have talked about inventory and lack of options for home buyers pushing the price of homes up. Now you couple that with rising interest rates and buyers are starting to leave the market because they cannot afford to buy. Historically speaking, rates are still low, but they are not trending in the right direction, and we are seeing a slowing in the housing market because of that. Hopefully, this will bring some new inventory and balance to a market that has needed it,” said Masten.
CAR’s monthly local housing statistics are compiled by Bright Multiple Listing Service, which represents the activity of over 1,000 local REALTORS® in Somerset, Wicomico, and Worcester counties, as well as 95,000 real estate professionals across the Mid-Atlantic region. The Bright MLS service area includes Maryland, Delaware, New Jersey, Pennsylvania, Virginia, Washington, D.C., and West Virginia.
Visit www.coastalrealtors.org for more information.