Coldwell Banker Chesapeake Real Estate just released January 2015 monthly real estate market data for the Eastern Shore Of Maryland – including Caroline, Talbot Dorchester, Queen Anne’s, Kent, and Cecil Counties.
Sold Dollar Volume: Sellers on the Upper Eastern Shore closed $61,386,729 in real estate sales in January– up 13.95% from the $53,873,985 closed in January last year. This is a positive sign for recovery. Another good sign are the 140 new pending contracts booked in January 2015, a 29.63% improvement over the previous year. Taken together these two metrics bode well for a stronger 2015 in all Eastern Shore real estate markets.
Our Guidance: there has never been a better time to buy. We have the bottom of the market in our rearview mirror and demand is starting to strengthen. Long –term mortgage rates are under 4% and the national economy is heating up. Our agents look for this trend to slowly accelerate in 2015 and thereafter as national economic fundamentals and consumer confidence continues to improve and waterfront buyers return to the shores of the Chesapeake Bay.
Average Sold Price: The average sold price of an Eastern Shore residential property in January 2015 was $290,932 – down from $297, 646 achieved in January 2014 down marginally (- 2.26%) year-over-year. The low average sold price illustrates the continued absence of luxury and waterfront buyers from the Eastern Shore markets but the marginal decline points to stabilizing prices. Look for this number to increase as we go into the spring. The average sold price is sensitive to periodic outliers in individual markets.
Median Sold Price – The median sold price in January 2015 of $185,000 continues to hover near the bottom of its 10-yr range and is a decline of 7.5% from January 2014. This reflects the continued high number of foreclosures and short sales in the market and the previously mentioned absence of luxury buyers. The median Sold Price will improve in 2015 and thereafter as the inventory of foreclosures declines and luxury buyers return to the market.
Absorption Rate – The inventory of properties on the market on the Eastern Shore (2,696 properties) at the end of January 2015 is at the bottom of its five-year range. In January 2015, 221 properties were SOLD up 11.8% from the 181 closed in January of 2014. This absorption rate suggests a 10.5 month inventory of properties, still well above the 6 month inventory considered to be a market in equilibrium but well below the 5 year average of 13.2 months. This inventory will continue to decline to healthier levels as spring progresses. Look for this trend to continue as gas prices continue to fall in 2015 and the Washington/Baltimore metroplex becomes more congested and expensive for first-time and first move-up buyers
Average Days On Market – the average of 172 Days On Market (DOM) for all sold listings in January 2015 is an improvement of 1.15% over the January 2014 (174 DOM). Look for this trend to continue in 2015 as value conscious buyers recognize the good values to be found in most Eastern Shore markets. A rising interest-rate environment will also prompt buyers to jump off the fence in 2015.
Average List Price For Solds – The average list price for solds in January 2015 of $322,306 is 8.43% below the $351,969 noted in January 2014. This metric has experienced considerable downwards pressure from short sellers and sellers will to make significant concessions to achieve timely sales for lifestyle reasons. Look for this trend to continue through 2015 as excess and shadow inventory continues to be absorbed.