April 2023 Real Estate Guide

Real Estate

THE COASTAL REAL ESTATE RESOURCE Coastal Association of Realtors/Ocean City Today

Published by Ocean City Today for the Coastal Association of Realtors. Advertising in this publication is limited to members and affiliated members of the Association.

The COASTAL ASSOCIATION OF REALTORS® (CAR) is a trade organization for real estate professionals in Wicomico, Worcester and Somerset Counties on the Eastern Shore of Maryland. Its membership consists of more than 1,000 REALTORs® and affiliate members serving the home-buying and home-selling needs of the public since 1957.

The term REALTOR® is a registered collective membership mark, which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS® and subscribe to its strict Code of Ethics.

The COASTAL ASSOCIATION OF REALTORS is located at 314 Franklin Avenue, Suite 106 • Berlin, MD 21811. Phone: 410-641-4409. On the Web: www.coastalrealtor.org

OCEAN CITY TODAY is the leading newspaper publisher on the Maryland coast, with Ocean City Today publishing weekly on Friday, Bayside Gazette and Ocean City Digest publishing on Thursdays and Real Estate, the Coastal Real Estate Resource publishing key weekends throughout the year. On the Web: www.oceancitytoday.com

Editor .........................................................................Stewart Dobson

Managing Editor............................................................... Lisa Capitelli

Account Managers....................... Mary Cooper, Vicki Shrier, Renée Kelly

Classifieds/Legals/Production Manager .................... Nancy MacCubbin

Senior Designer .............................................................. Susan Parks

Graphic Artist ................................................................... Kelly Brown

Publisher..................................................................... Christine Brown Admin. Assistant................................................................... Gini Tufts

410-641-0039 WWW.OCEANCITYTODAY.COM

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Existing home sales go up, reversing trend

WASHINGTON (March 21, 2023) – Existing-home sales reversed a 12month slide in February, registering the largest monthly percentage increase since July 2020, according to the National Association of REALTORS. Month-over-month sales rose in all four major U.S. regions. All regions posted year-over-year declines. Total existing-home sales, https://www.nar.realtor/existinghome-sales – completed transactions that include single-family homes, townhomes, condominiums and coops – vaulted 14.5 percent from Janu-

ary to a seasonally adjusted annual rate of 4.58 million in February. Yearover-year, sales fell 22.6 percent (down from 5.92 million in February 2022).

“Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines,” said NAR Chief Economist Lawrence Yun. “Moreover, we’re seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs.”

Total housing inventory registered at the end of February was 980,000 units, identical to January and up 15.3

percent from one year ago (850,000). Unsold inventory sits at a 2.6-month supply at the current sales pace, down 10.3 percent from January but up from 1.7 months in February 2022.

“Inventory levels are still at historic lows,” Yun added. “Consequently, multiple offers are returning on a good number of properties.”

The median existing-home price for all housing types in February was $363,000, a decline of 0.2 percent from February 2022 ($363,700), as prices climbed in the Midwest and South yet waned in the Northeast and

West. This ends a streak of 131 consecutive months of year-over-year increases, the longest on record.

Properties typically remained on the market for 34 days in February, up from 33 days in January and 18 days in February 2022. Fifty-seven percent of homes sold in February were on the market for less than a month.

First-time buyers were responsible for 27 percent of sales in February, down from 31 percent in January and 29 percent in February 2022. NAR’s

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February sees sales of existing homes rise

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2022 Profile of Home Buyers and Sellers – released in November 2022 –found that the annual share of firsttime buyers was 26 percent, the lowest since NAR began tracking the data.

All-cash sales accounted for 28 percent of transactions in February, down from 29 percent in January but up from 25 percent in February 2022.

Individual investors or secondhome buyers, who make up many cash sales, purchased 18 percent of homes in February, up from 16 percent in January but down from 19 percent in February 2022.

Distressed sales – foreclosures and short sales – represented 2 percent of sales in February, nearly identical to last month and one year ago.

According to Freddie Mac, the 30year fixed-rate mortgage averaged 6.60 percent as of March 16. That’s down from 6.73 percent from the previous week but up from 4.16 percent one year ago.

Single-family and Condo/Coop Sales

Single-family home sales soared to a seasonally adjusted annual rate of 4.14 million in February, up 15.3 percent from 3.59 million in January but down 21.4 percent from the previous year. The median existing single-family home price was $367,500 in Feb-

ruary, down 0.7 percent from February 2022.

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 440,000 units in February, up from 410,000 in January but down 32.3 percent from one year ago. The median existing condo price was $321,000 in February, an annual increase of 2.5 percent.

“Owning a home provides a path to long-term financial security and is a vehicle by which to transfer wealth to future generations,” said NAR President Kenny Parcell, a REALTOR from Spanish Fork, Utah, and brokerowner of Equity Real Estate Utah.

“REALTORS deliver expert guidance, objectivity and professionalism to consumers during the complex process of purchasing a home.”

Regional Breakdown

Existing-home sales in the Northeast improved 4.0 percent from January to an annual rate of 520,000 in February, down 25.7 percent from February 2022. The median price in the Northeast was $366,100, down 4.5 percent from the previous year.

In the Midwest, existing-home sales grew 13.5 percent from the previous month to an annual rate of 1.09 million in February, declining 18.7 percent from one year ago. The me-

$261,200, up 5.0 percent from February 2022.

Existing-home sales in the South rebounded 15.9 percent in February from January to an annual rate of 2.11 million, a 21.3 percent decrease from the prior year. The median price in the South was $342,000, an increase

of 2.7 percent from one year ago.

In the West, existing-home sales rocketed 19.4 percent in February from the prior month to an annual rate of 860,000, down 28.3 percent from the previous year. The median price in the West was $541,100, down 5.6 percent from February 2022.

Pending home sales go up everywhere but West Coast

WASHINGTON (March 29, 2023)

– Pending home sales grew in February for the third consecutive month, according to the National Association of Realtors. Three U.S. regions posted monthly gains, while the West declined. All four regions saw year-overyear decreases in transactions.

The Pending Home Sales Index (PHSI)* — a forward-looking indicator of home sales based on contract signings — improved 0.8 percent to 83.2 in February. Year-over-year, pending transactions dropped by 21.1 percent. An index of 100 is equal to the level of contract activity in 2001.

“After nearly a year, the housing sector’s contraction is coming to an

Lawrence Yun. “Existing-home sales, pending contracts and new-home construction pending contracts have turned the corner and climbed for the past three months.”

The Northeast PHSI raised 6.5 percent from last month to 72.5, a drop of 17 percent from February 2022. The Midwest index improved 0.4 percent to 84.9 in February, a decline of 16.5 percent from one year ago.

The South PHSI grew 0.7 percent to 99.3 in February, dropping 21.7 percent from the prior year. The West index decreased 2.4 percent in February to 64.6, shrinking 28.4 percent from February 2022.

“The affordable U.S. regions – the Continued on Page 13

Realtors award $7,750 to local charities

Lower Eastern Shore, Md. – The Coastal Association of Realtors (Coastal) is pleased to announce that it has awarded $7,750 in grants to local charities through the Coastal Realtors Foundation during its latest round of funding. Since 2018, Coastal Realtors Foundation has given close to $70,000 to local charities in Wicomico, Worcester, and Somerset counties.

The following 13 organizations received grants in the Coastal Realtors

Foundation’s latest round of funding, the most we have ever funded at one time:

• Asbury Child Development Center

• Atlantic General Hospital JAG

• Brooke Mulford Foundation

• Coastal Hospice

• Crisfield Smith Island Cultural Alliance

• Habitat for Humanity of Worcester County

• Rackliffe House Trust

• Smith Island United

• The Cricket Center

• Unstoppable Joy Co.

• Wicomico Child Advocacy Center

• Wicomico Grows Kindness

• Worcester County Humane Society

The Coastal Realtors Foundation is a charitable fund held by the Community Foundation of the Eastern Shore. The association raises money for the fund through an annual charity golf tournament as well as other

efforts throughout the year. The fund is accessible to members of Coastal through an application process administered by the association and reviewed by a committee of members. Grant recipients must be 501(c)3 organizations and must be located in Somerset, Wicomico, or Worcester counties.

“We are starting our 5th year as a charitable foundation and we are very honored and excited to continue to

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Foundation enters its fifth year

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give back to the Lower Shore,” said Coastal President Austin Whitehead. “The organizations we choose to support are championed by our members and we are proud to support the work they are doing. With over 1000 members in the Lower Shore, Realtors give back countless amounts of their time, money, and expertise to nonprofits. We are just honored to be able to participate in their hard work in this small way.”

Grants are awarded 3 times a year, and the next deadline is June 15th, 2023.

The Coastal Association of Realtors Foundation is currently raising money through a raffle for a brand-new electric bicycle. All proceeds go to the foundation and are then given to local charities. You can find a link to the raffle here https://car.betterworld.org/giveaways/riding-brand-pedego-electricbik

Lower For more information about the Coastal Realtors Foundation, visit www.coastalrealtors.org.

More about Coastal Association of Realtors

The Coastal Association of Realtors is fortunate enough to represent over 1,000 real estate professionals in Somerset, Wicomico, and Worcester Counties.

These members are engaged, in-

formed, and active in their communities.

They support the American dream of homeownership, as well as the purchase and use of all types of real property.

They are local. They are accurate. They are trusted. They are Realtors and affiliate members.

For more information on Coastal Realtors, go to www.coastalrealtors.org. The term Realtor is a registered collective membership mark unique to real estate professionals who are members of the National Association of Realtors and subscribe to its strict code of ethics.

Mortgage rates getting better

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Midwest and South – are leading the recovery,” Yun added. “Mortgage rates have improved in recent weeks after the federal government guaranteed the status of most mortgages amidst uncertainty in the financial market. While access to commercial mortgage loans could become increasingly difficult, residential mortgage loans are expected to be more readily available.”

Staging home for sale helps reduce its time on market

WASHINGTON (March 30, 2023) –Nearly half of seller’s agents (48 percent) reported that staging a home decreased its time on market, according to a new report by the National Association of. For both buyers’ and sellers’ agents, one in five (20 percent) said home staging increased the offer price by between 1 percent and 5 percent compared to similar homes on the market that weren’t staged.

NAR’s 2023 Profile of Home Staging reveals the role home staging plays in the real estate transaction, including the perspectives of buyers’ and sellers’ agents, the impact of television shows and buyer expectations.

“As days on market has lengthened for home sellers, it is not a surprise to see the return of home staging as a tool to attract potential buyers,” said Jessica Lautz, NAR deputy chief economist and vice president of research. “Buyers want to easily envision themselves within a new home and home staging is a way to showcase the property in its best light.”

Four out of five buyers’ agents (81 percent) said staging a home made it easier for a buyer to visualize the property as a future home. Staging the living room was found to be most important for buyers (39 percent), followed by the primary bedroom (36 percent) and the kitchen (30 percent).

“When getting ready to list a home for

sale, it’s vital to complete the necessary prep work to make a favorable and lasting first impression,” said NAR President Kenny Parcell, a Realtor from Spanish Fork, Utah, and broker-owner of Equity Real Estate Utah. “Realtors provide valuable guidance on how best to make your home an inviting space that connects with prospective buyers and stands out from the competition.”

Almost a quarter of sellers’ agents (23 percent) said they staged all sellers’ homes prior to listing them for sale, while 10 percent noted they only staged homes that were difficult to sell.

Real estate television shows affected buyers’ perspectives on homes, according to a majority of Realtors. Approximately three out of four respondents (73 percent) said that TV shows which display the buying process impacted their business by setting unrealistic or increased expectations, with more than half of those surveyed (55 percent) reporting that buyers said homes should look like they were staged on TV shows.

In the last five years, about half of surveyed Realtors (51 percent) said they’ve seen an increase in the share of buyers who planned to remodel a home. A quarter of respondents noted that buyers who plan to remodel will do so within the first three months of owning a home.