May 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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Home prices rose by 4.7 % year over year in 1st quarter

economist.

WASHINGTON – Single-family home prices increased at a non-seasonally adjusted annual rate of 4.7 percent from Q1 2022 to Q1 2023, down from the previous quarter’s revised annual growth rate of 8.6 percent, according to Fannie Mae’s (FNMA/OTCQB) latest Home Price Index (FNM-HPI) reading, a national, repeat-transaction home price index measuring the average, quarterly price change for all singlefamily properties in the United States, excluding condos.

On a quarterly basis, home prices rose a seasonally adjusted 1.0 percent in Q1 2023, above the 0.0 percent growth seen in the prior quarter.

On a non-seasonally adjusted basis, home prices also increased by 1.0 percent in Q1 2023.

“As expected, the annual rate of increase in home prices has slowed dramatically in response to the rapid and significant increase in interest rates,” said Doug Duncan, Fannie Mae Senior vice president and chief

“Still, the fact that prices rose slightly in the first quarter is evidence of significant pent-up mortgage demand, despite ongoing affordability constraints. Even though mortgage rates remain elevated compared to the previous few years, the acute lack of housing supply remains supportive of home prices. Of course, the shortage of homes for sale is currently being exacerbated by the so-called ‘lock-in effect,’ which continues to disincentivize huge numbers of households with low mortgage rates from listing their homes.”

The FNM-HPI is produced by aggregating county-level data to create both seasonally adjusted and nonseasonally adjusted national indices that are representative of the whole country and designed to serve as indicators of general single-family home price trends.

The FNM-HPI is publicly available at the national level as a quarterly series with a start date of Q1 1975 and extending to the most recent quarter, Q1 2023. Fannie Mae publishes the FNM-HPI approximately mid-month during the first month of each new quarter.

FNM-HPI Showed quarterly increase of 1.0 percent on seasonally adjusted basis

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Checking inside and outside with a home inspection helps buyers make an informed decision.

Home inspections can help buyers decide

(Ocean City) The process of buying a home can be unlike any experience prospective buyers have ever had. After finding a home they like and coming to an agreement on a sale price with the seller, buyers can expect to add many items to their to-do list. One of the first things to jot down on that list is scheduling a home inspection.

Home inspections are a vital part of the home buying process. Such inspections can protect buyers as they’re on the cusp of making what will likely be the most significant investment of their lives. Understanding the home inspection process can help buyers during an exciting yet potentially nerve-wracking time in their lives.

What is a home inspection?

The American Society of Home Inspectors defines a home inspection as an objective visual examination of the physical structure and systems of a house. Inspectors will conduct visual examinations from the roof to the foundation of the home. Additional structures on the property, such as sheds or detached outdoor living areas, are not typically included in the examination.

What do inspectors examine?

The ASHI notes that inspectors will examine the condition of vari-

ous parts of the home. The heating system, central air conditioning unit, interior plumbing and electrical systems, roof (though inspectors will not climb onto the roof), attic and insulation will be examined. Inspectors also will examine walls, ceilings, floors, windows, doors, the foundation of the home, basement (or crawl space), and structural components.

Can a home fail inspection?

Homes cannot fail home inspections, which are just assessments of a

home’s existing condition. Municipal inspections are separate inspections conducted by government agencies to verify that a property is in compliance with local codes. Home inspectors will provide detailed reports describing the condition of a home and indicate if any repairs are in order.

Do I really need a home inspection?

A home inspection is a vital component that can help buyers make the most informed decision possible. Forgoing an inspection can leave buy-

ers vulnerable to potentially costly repairs and issues with a home that might have been detected with a proper home inspection.

In addition, some lenders insist that buyers have home inspections conducted before they will allow them to borrow money.

Home inspections can protect home buyers as they prepare to make the most significant financial investment of their lives. More information about inspections can be found at www.homeinspector.org.

Energy-efficient homes can pay

(Ocean City) Consumer efforts to be more eco-conscious are more and more noticeable. For proof of that, one need look no further than the increase in vehicle charging stations. Such stations are more accessible than ever and illustrate that consumer preference is increasingly leaning toward products that leave as small a carbon footprint as possible.

Another indicator of a growing interest in eco-friendly products is the popularity in energy-efficient homes. In fact, a recent survey from the Na-

tional Association of Home Builders found that energy-efficient features are among the most sought-after “must-haves” among homebuyers.

Among those surveyed, 83 percent desired Energy Star-rated windows, 81 percent wanted Energy Star-rated appliances and 80 percent preferred energy-efficient lighting.

Though eco-conscious sensibilities compel millions of homeowners to make their homes more energy-efficient, that’s not the only reason to upgrade your home. The following are a handful of the many benefits of en-

off

ergy-efficient homes.

• Save money: Inflation was one of the biggest stories of 2022, as the cost of living rose dramatically in the wake of world events. According to data from the U.S. Bureau of Labor Statistics, inflation led to an overall 6.5 percent increase in prices.

But that increase was dwarfed by the cost of electricity, which increased by 14.3 percent in 2022. Energy-efficient appliances can help homeowners overcome that spike, as the U.S. Department of Energy indi-

Continued on Page 8

Staging home can decrease time on market

WASHINGTON – 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 Realtors. 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.

Almost all surveyed (95 percent) said that their buyer clients brought family members who weren’t purchasing the home with them while viewing homes.

Energy-efficiency has its benefits

Continued from Page 7

cates upgrading to such products can help homeowners reduce their energy costs by as much as 30 percent.

• Improve resale value: As the NAHB survey indicates, modern homebuyers want energy-efficient homes. They’re also willing to pay more for such homes. Research from the mortgage lender Freddie Mac found that homes with energy-efficient ratings sold for nearly 3 percent more on average than homes without such ratings.

• Live healthier: The benefits of energy-efficient homes aren’t just economic, though health-related benefits certainly produce an economic incentive as well.

According to the American Council for an Energy-Efficient Economy, insulation and air sealing protect individuals from heat waves and other ripple effects of climate change. The ACEEE notes that weatherization can improve indoor air quality and comfort, a notable benefit for asthma sufferers and seniors. In fact, the ACEEE

estimates that integrating energy efficiency programs in homes could reduce seniors’ risk for falls in their homes, potentially saving $2 billion in fall-related health care costs over the next decade, and improve asthma outcomes, which could reduce health care costs by as much as half a billion dollars.

Energy-efficient products and practices pay numerous dividends, making them a worthy expenditure for any homeowners looking to upgrade their homes.

Homeowners’ wealth grows with appreciation

KANSAS CITY – A new housing report by the National Association of Realtors reveals middle-income homeowners accumulated $122,100 in wealth as their homes appreciated by 68 percent in the last 10 years.

The report, “Wealth Gains by Income and Racial/Ethnic Group,” speaks to the value agents and Realtors bring to consumers when helping buy and sell homes that build generational wealth. NAR released the report during its 2023 Realtor Broker Summit as the association commemorates Fair Housing Month.

While not everyone has the same opportunities for homeownership, data show substantial variations and inequalities in homeownership rates across different income and racial and ethnic groups. For instance, low-income homeowners were able to build $98,900 in wealth in the last decade from home price appreciation only, while upper-income households saw an increase of $150,800.

“This analysis shows how homeownership is a catalyst for building wealth for people from all walks of life,” said Lawrence Yun, NAR’s chief economist.

“A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”

Although Black homeowners experienced the smallest wealth gains among any other racial or ethnic group, these owners were able to accumulate over $115,000 in wealth in the last decade. For the first time in this report, NAR identified the top 10 U.S. metro areas which have recorded the largest wealth gains for Black homeowners over the last 10 years. Black households in

Bellingham, Washington; Ocala, Florida; Palm Bay, Florida; Modesto, California; Greeley, Colorado; and Charleston, South Carolina were among the areas where more than 60 percent of Black households own their home. Owners in these areas were able to accumulate more than $125,000 in wealth in the last decade.

Along with the wealth gains accumulated in the last decade, homeowners also saw their debt drop by 21 percent. Many homeowners who were able to refinance and secure a rate lower than 4 percent in the months following the

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onset of COVID-19 may have paid off an even larger amount of their mortgage, Yun noted.

“Your neighborhood Realtor is a champion able to help you achieve the dream of homeownership,” said NAR President Kenny Parcell, a Realtor from Spanish Fork, Utah, and a brokerowner of Equity Real Estate, Utah. “Homeownership helps create longterm wealth and financial stability for your family and future generations.”

No matter the income level, owners who live in expensive metro areas experienced the largest wealth gains. In the

San Jose metro area, low-income owners have accumulated nearly $630,000 in the last decade, and middle-income owners gained $643,000. All of the top 10 areas with the largest wealth gains for low-income owners – surpassing $290,000 – were located in California.

In the top 10 areas with the highest homeownership rates for middle-income households, owners gained $110,000 in wealth on average in the last 10 years. In Ogden, Utah, for example, with 85 percent of the middle-income households owning their home, homeowners have built nearly

$220,000 in wealth in the last decade.

Some significant areas to note include Port St. Lucie, Florida, where homeownership rate for middle-income households was 83 percent, and middle-income owners gained nearly $200,000 in wealth. The metro areas of Barnstable Town, Massachusetts and Palm Bay, Florida were some other areas where most middle-income households own their home and accumulated a substantial amount of wealth – over $170,000 – in the last decade.

Respectively, in the areas with the highest homeownership rates for low-

income households, wealth gains were $140,000 on average. In Prescott, Arizona, while more than 2 out of 3 low-income households (68 percent) own their own home, owners have built more than $200,000 in wealth in the last decade.

Barnstable Town, Massachusetts, as well as the Florida metro areas of North Port, Port St. Lucie, Palm Bay and Deltona, were other areas where most lowincome households owned their home and accumulated a substantial amount of wealth – over $120,000 – in the last decade.

‘Your neighborhood Realtor is a champion able to help you achieve the dream of homeownership.’

NAR President Kenny Parcell

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Baby boomers found to be largest generation of buyers

WASHINGTON – The share of baby boomers has surpassed millennials and now makes up the largest generation of home buyers, according to the latest study from the National Association of Realtors.

The 2023 Home Buyers and Sellers Generational Trends report, which examines the similarities and differences of recent home buyers and sellers across generations, found that the combined share of younger boomer (58 to 67 years old) and older boomer buyers (68 to 76 years old) rose to 39 percent in 2022, up from 29 percent the year prior.

Younger millennials (24 to 32 years old) and older millennials (33 to 42 years old) have been the top group of buyers since 2014, but they saw their combined share fall from 43 percent in 2021 to 28 percent last year.

Twenty-six percent of all buyers were first-time buyers, the lowest since NAR began tracking the data and a decrease from 34 percent last year. Seventy percent of younger millennials and 46 percent of older millennials were first-time buyers. Behind these groups, only 21 percent of Generation X (43 to 57 years old) and 9 percent of younger boomers were first-time purchasers.

Generation Z – ages 18 to 23 – now makes up 4 percent of home buyers, a slight increase from 2 percent in 2021. Nearly one in three Gen Z buyers – 30 percent – moved directly from a family member’s home into homeownership. Finding a location convenient to friends and family was most important to this cohort of buyers.

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“Baby boomers have the upper hand in the homebuying market,” said Dr. Jessica Lautz, NAR deputy chief economist and vice president of research. “The majority of them are repeat buyers who have housing equity to propel them into their dream home – be it a place to enjoy retirement or a home near friends and family. They are living healthier and longer and making housing trades later in life.”

“As the youngest generation of home buyers and sellers, it’s encouraging to see Gen Z entering the market,” Lautz said. “Their desire for homeownership is strong, and many are relying on family support systems to help make their first real estate purchase.”

Generation X made up 24 percent of total buyers. They had the highest median household income of any generation ($114,300), followed by older

Continued on Page 19

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Dates are listed as the

OCTOBER ISSUE

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Improve curb appeal prior to putting house on market

WASHINGTON – Most Realtors (92 percent) suggest that sellers improve the curb appeal of their home before listing it for sale.

May 26th

Memorial Day Weekend

JULY ISSUE

June 30th

July 4th Weekend

AUGUST ISSUE

August 4th

White Marlin Open (Aug. 7-11)

SEPTEMBER ISSUE

September 1st

Labor Day Weekend

November

Thanksgiving Weekend

JAN. 2024 ISSUE December 29th

New Year’s Weekend

FEB. 2024 ISSUE Feburary 16th

Valentine’s Weekend

MARCH 2024 ISSUE

March 15th

St. Patrick’s Weekend

Also, the largest shares of Realtors recommended owners complete landscaping-related features before putting a home on the market, and those were among the top projects for which landscape professionals saw increased demand over the last year.

These and other findings come according to a report released last month by the National Association of Realtors and the National Association of Landscape Professionals.

The 2023 Remodeling Impact Report: Outdoor Features examines why homeowners complete outdoor remodeling projects, the value of undertaking these enhancements and homeowners’ increased happiness after completing an upgrade.Specifically, the report covers the following:

1. Project Cost: The cost of 11 outdoor residential projects as estimated by members of the National Associa-

tion of Landscape Professionals.

2. Realtors’ Estimated Cost Recovery and Recommendation: Realtors’ estimated cost recovery — defined as the amount of money homeowners can recover on a project upon selling a home — and the share of Realtors that recommend these outdoor upgrades before listing a home.

3. Consumer Experience: The experience consumers had upon completing the 11 projects, including a Joy Score.

“The covid-19 pandemic changed the way Americans use their homes for daily living, relaxation and entertainment,” said Dr. Jessica Lautz, NAR deputy chief economist and vice president of research. “Homeowners have embraced their outdoor spaces — transforming them into oases with pools, patios, plants and greenery. These outdoor features are embraced by the homeowner and can also attract buyers if the owner wants to sell.”

Continued on page 20

Sales of existing homes taper off in March

WASHINGTON – Existing-home sales edged lower in March, according to the National Association of Realtors. Month-over-month sales declined in three out of four major U.S. regions, while sales in the Northeast remained steady. All regions posted year-over-year decreases.

Total existing-home sales, https://www.nar.realtor/existinghome-sales – completed transactions that include single-family homes, townhomes, condominiums and coops – fell 2.4 percent from February to a seasonally adjusted annual rate of 4.44 million in March. Year-over-year, sales waned 22.0 percent (down from 5.69 million in March 2022).

"Home sales are trying to recover and are highly sensitive to changes in mortgage rates," said NAR Chief Economist Lawrence Yun. "Yet, at the same time, multiple offers on starter homes are quite common, implying more supply is needed to fully satisfy demand. It's a unique housing market."

Total housing inventory registered at the end of March was 980,000 units, up 1.0 percent from February and 5.4 percent from one year ago (930,000). Unsold inventory sits at a 2.6-month supply at the current sales pace, unchanged from February but up from 2.0 months in March 2022.

"Home prices continue to rise in re-

gions where jobs are being added and housing is relatively affordable," Yun noted. "However, the more expensive areas of the country are adjusting to lower prices."

The median existing-home price for all housing types in March was $375,700, a decline of 0.9 percent from March 2022 ($379,300). Price climbed slightly in three regions but dropped in the West.

Properties typically remained on the market for 29 days in March, down from 34 days in February but up from 17 days in March 2022. Sixty-five percent of homes sold in March were on the market for less than a month.

First-time buyers were responsible for 28 percent of sales in March, up from 27 percent in February but down from 30 percent in March 2022. NAR's 2022 Profile of Home Buyers and Sellers – released in November 2022 – found that the annual share of first-time buyers was 26 percent, the lowest since NAR began tracking the data.

All-cash sales accounted for 27 percent of transactions in March, down from 28 percent in February and one year ago.

Individual investors or secondhome buyers, who make up many cash sales, purchased 17 percent of homes in March, down from 18 per-

cent in February and the previous year.

Distressed sales – foreclosures and short sales – represented 1 percent of sales in March, nearly identical to last month and one year ago.

According to Freddie Mac, the 30year fixed-rate mortgage averaged 6.27 percent as of April 13. That's down from 6.28 percent from the previous week but up from 5 percent one year ago.

"With overall consumer price inflation calming and rents expected to decelerate from robust apartment construction, the Federal Reserve's monetary policy will surely shift from tightening to neutral to possibly loosening over the next 12 months," Yun added. "Therefore, home sales will steadily rebound despite several months of fluctuations."

Single-family and Condo/Coop Sales

Single-family home sales faded to a seasonally adjusted annual rate of 3.99 million in March, down 2.7 percent from 4.10 million in February and 21.1 percent from one year ago. The median existing single-family home price was $380,000 in March, down 1.4 percent from March 2022.

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 450,000 units in

March, identical to February but down 28.6 percent from the previous year. The median existing condo price was $337,300 in March, an annual increase of 2.1 percent.

"As documented in NAR's recent report about housing wealth gains by homeowners over the last decade, homeownership offers a road to financial security and wealth development," said NAR President Kenny Parcell, a Realtor from Spanish Fork, Utah, and broker-owner of Equity Real Estate Utah. "Rely on a Realtor to provide sound advice while purchasing your first home or next home."

Regional Breakdown

Existing-home sales in the Northeast were unchanged from February at an annual rate of 520,000 in March, but down 21.2 percent from March 2022. The median price in the Northeast was $395,400, up 1.0 percent from one year ago.

In the Midwest, existing-home sales retracted 5.5 percent from one month ago to an annual rate of 1.03 million in March, falling 17.6 percent from the previous year. The median price in the Midwest was $273,400, up 1.7 percent from March 2022.

Existing-home sales in the South receded 1.0 percent in March from

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Baby boomers lead home-buying

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millennials ($102,900).

In addition to leading the way in home buying, baby boomers remained the largest home seller generation, jumping from 42 percent in 2021 to 52 percent in 2022. Among all generations, sellers typically remained in their home for 10 years before selling, up from nine years last year. On average, younger millennials stayed in their homes for four years, while older boomers sold their homes after 16 years.

All generations agreed that the

March sales off slightly from ’22

Continued from Page 17

February to an annual rate of 2.07 million, a 20.4 percent decrease from the prior year. The median price in the South was $347,600, an increase of 0.3 percent from one year ago.

In the West, existing-home sales declined 3.5 percent from the previous month to an annual rate of 820,000 in March, down 30.5 percent from the prior year. The median price in the West was $565,400, down 7.5 percent from March 2022.

most common reason to sell was to be closer to friends and family. Older generations were also more likely to sell due to retirement, while younger generations cited the desire for a larger home and job relocation as top reasons to sell their home.

On average, people are moving farther distances. Overall, buyers moved a median of 50 miles when relocating, the highest ever recorded and up significantly from 15 miles last year. Younger generations moved shorter distances, with younger and older millennials each typically moving 15 miles away. Younger boomers moved the furthest (90 miles), followed by older boomers (60 miles) and the silent generation (50 miles).

Overall, buyers expected to live in their homes for 15 years, up from 12 years in 2021. For younger millennials, the expected duration was only 10 years, compared to 20 years for younger and older boomers. Surprisingly, Generation Z expected to remain in their newly purchased home for 19 years.

Eighty-six percent of all buyers purchased their homes through a real estate agent. This number was highest among younger boomers (90 percent) and Generation X (88 percent). Buyers from all generations agreed about the top reasons for using an agent:

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they wanted help finding the right home to purchase (49 percent), negotiating the terms of sale (13 percent) and negotiating the price (11 percent). Younger (14 percent) and older (12 percent) millennials were most likely to want their agent to help with paperwork.

Eighty-eight percent of all buyers reported that they view a home purchase as a good investment. Seventyfour percent of younger millennials and 77 percent of older millennials viewed a home as better than or about as good a financial investment as stocks.

Seventy-six percent of buyers said that they would use their agent again or recommend their agent to others, a number that was consistent across all generations.

“Owning a home is more than just a financial investment. It’s a symbol of stability, independence and community that helps people build their lives and achieve their dreams,” said NAR President Kenny Parcell, a Realtor from Spanish Fork, Utah, and brokerowner of Equity Real Estate Utah. “Whether you’re a first-time home buyer or an experienced investor, Realtors have the expertise and knowledge needed to provide valuable advice and help you make informed decisions about your purchase.”

Pending home sales decline, in most areas

WASHINGTON – Pending home sales decreased in March for the first time since November 2022, according to the National Association of Realtors. Three U.S. regions posted monthly losses, while the South — including this area —a increased. All four regions saw year-over-year declines in transactions.

The Pending Home Sales Index (PHSI) – a forward-looking indicator of home sales based on contract signings – waned by 5.2 percent to 78.9 in March. Year over year, pending transactions dropped by 23.2 percent. An index of 100 is equal to the level of contract activity in 2001.

“The lack of housing inventory is a major constraint to rising sales,” said NAR Chief Economist Lawrence Yun. “Multiple offers are still occurring on about a third of all listings, and 28 percent of homes are selling above list price. Limited housing supply is simply not meeting demand nationally.”

NAR forecasts that the economy will continue adding jobs, albeit at a slower pace, and mortgage rates will

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Forecast: prices to stabilize

Continued from page 19

drop – with the 30-year fixed mortgage rate progressively falling to 6.0 percent this year and to 5.6 percent in 2024. Housing starts will fall from last year by 7.3 percent in 2023, to 1.44 million, and then increase 6.9 percent in 2024, to 1.54 million.

“Sales in the second half of the year should be notably better than the first half as job gains continue and more favorable mortgage rates are expected,” said Yun. “Sales of new homes are already matching 2019 pre-covid activity and are expected to increase in 2023, largely due to plentiful inventory in this segment of the market.”

With continued job gains and improving interest rates, NAR anticipates existing-home sales will steadily improve in the upcoming months but will still come up short on an annual figure.

Existing-home sales will drop from the prior year by 9.3 percent in 2023, to 4.56 million, before increasing by 15.4 perent in 2024, to 5.26 million. Newly constructed home sales will increase from last year by 4.5 percent in 2023, to 670,000, due

to more plentiful inventory in this segment of the market, and increase by another 11.9 percent in 2024, to 750,000.

Compared to last year, NAR forecasts that median existing-home prices will mostly stabilize – with the national median existing-home price decreasing by 1.8 percent in 2023, to $379,600, and then improving by 2.8 percent in 2024, to $390,000.

The expensive West region of the U.S. will see lower prices, but the affordable Midwest region will likely squeak out a positive gain. The median new home price will be lower by 1.9 percent in 2023, to $449,100, followed by an improvement of 4.2 percent in 2024, to $468,000.

The Northeast PHSI fell 8.1 percent from last month to 66.6, a decline of 24.3 percent from March 2022. The Midwest index dropped 10.7 percent to 75.7 in March, down 21.5 percent from one year ago.

The South PHSI improved 0.2 percent to 99.6 in March, falling 19.8 percent from the prior year. The West index decreased 8.0 percent in March to 59.4, reducing 32.2 percent from March 2022.

Improving curb appeal helps

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The 11 outdoor features in the report include: fire feature ($9,000), in-ground pool addition ($90,000), irrigation system installation ($6,000), landscape lighting ($6,800), landscape maintenance ($4,800), new patio ($10,500), new wood deck ($16,900), outdoor kitchen ($15,000), overall landscape upgrade ($9,000), tree care ($2,875) and standard lawn care service ($415).

Ranked on a scale of 1-10, the report found that consumers rated all 11 outdoor projects highly, with Joy Scores at 9 or above.

Among the features, the highest Joy Scores were for an in-ground pool addition (10), landscape lighting (10) and a new patio (9.9). Slightly lower Joy Scores were provided for an outdoor kitchen (9), tree care (9.3), standard lawn care service (9.4) and an irrigation system installation (9.4).

High Joy Scores did not necessarily correspond with Realtors’ estimate for high cost recovery. Interestingly, the least expensive project — standard lawn care service — had the highest cost recovery (217 percent), followed by landscape maintenance (104 percent), an overall landscape upgrade (100 percent) and an outdoor kitchen (100 percent).

In comparison, the lowest cost recovery was for an in-ground pool (56 percent) — which had the highest Joy

Score — followed by a fire feature (56 percent) and landscape lighting (59 percent).

In line with their majority recommendation to improve curb appeal, the largest shares of Realtors that recommended completing an outdoor project prior to selling a home were for landscaping-related projects, including landscape maintenance (74 percent), standard lawn care service (53 percent) and tree care (44 percent).

The shares of Realtor recommendations were the lowest for an inground pool addition (1 percent), outdoor kitchen (1 percent) and an irrigation system installation (2 percent).

The outdoor projects for which landscape professionals saw the most increased demand included an overall landscape upgrade (61 percent), landscape maintenance (58 percent) and a new patio (55 percent). Conversely, they saw the least increased demand for a new wood deck (15 percent), an in-ground pool addition (25 percent) and tree care (29 percent).

“It’s no surprise that nearly all Realtors and most homeowners place a high value on the curb appeal of a well-maintained yard,” said Britt Wood, NALP CEO.

“Healthy outdoor living and green spaces help the environment, increase home values, make communities more desirable, and improve people’s mental and physical health,” he said.

Mary McCracken Graves

Mary McCracken Graves

Karen Oass

The Zell Team

Steve Mastbrook Tim Meadowbrook

Anna Montgomery Tom Niemkiewicz

The Charles Rappa Team

Nick Preziosi

Joan Walter

Imad Elali Nancy Kalin Mike Kowalski

Michael Valenti

Stan Zaremba

Ask

These are the organizations we have supported.

These are the organizations we have supported.

AGH Forensic Nurse Examiners (FENS)

Art League of Ocean City

Atlantic Club

Atlantic General Hospital Foundation

-Campaign for the Future

Beyond Your Walls, Inc.

Chesapeake Housing Mission

Coastal Hospice: The Macky and Pam Stansell House

Community Players of Salisbury

Cricket Center

Crisfield Arts and Entertainment District

Crisfield Volunteer Fire Department

Diakonia

Eastern Shore Alzheimer's Association

Eastern Shore Pregnancy Center

Eastern Shore Running Club Scholarship Fund

Epoch Dream Center

GOC Chamber of Commerce Foundation

Grace Center

Habitat for Humanity of Wicomico County

Habitat for Humanity of Worcester County

Help and Outreach Point of Entry (HOPE)

Hope 4 Recovery

Hope And Life Outreach (HALO)

Humane Society of Wicomico County

Humane Society of Worcester County

Junior Acheivement of the Eastern Shore

Life Crisis Center

Lower Shore Land Trust

Maryland Food Bank of the Eastern Shore

Mid-Atlantic Symphony Orchestra

Most Blessed Sacrament School

Ocean City Power Squadron

Parsonsburg Volunteer Fire Department

Rackliffe House

Salisbury Christian School

Salisbury Neighborhood Housing

Tim Kennard River Run

United Needs & Abilities

United Way of the Lower Eastern Shore

Village of Hope

Wall that Heals (Veterans Memorial)

Wicomico Child Advocacy Center (CAC)

Wicomico County Parks & Rec/CFES

Wicomico Environmental Trust

Wicomico Grows Kindness

Wicomico Libraries Reader Van

Worcester County Veterans Memorial at Ocean Pines

Worcester Goes Purple

Worcester GOLD

Worcester Youth and Family Counseling Services

Wyatt's Warriors Foundation

Young Life Salisbury

your Coastal member to apply for your non-profit grant.

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Arrange the Change

Sharon Knowles

Authority Inspections

John James

Bay Acquisitions Inc

Harry Hammel

Bayshore Appraisals, Inc

Janet Jones

Brennan Title Company

John Brennan

Daniel Erb

Peter McGough

Bright Title and Settlement Services, LLC

Sam Greenfeld

Brumbley Appraisal Services

Alfred Brumbley

Caliber Home Loans

Joel Bailey

Capitol Title Group

Kathy Burton

Maura Burton

Pilar Burton

Cardinal Settlements

Matt Chance

Mac McGraw

CG Accounting Croup

Phillip Cheung

CMG Home Loans

Shawn Hunt

Devon Eastlack

Amanda Garcia

Kaitie Huttenberger

Beth Hunt

Zack Hunt

Aaron Jones

Samuel Kotzur

Kristine Labert

Coastal Appraisals, LLC

Jennifer Yuhas

Construction Delmarva

Devin Holland

Community Title Network

Chris Eschenburg

CTW Real Property Appraisals

C Terence Wittstadt

D3 Corp

John Gehrig

Davis, Bowen & Friedel, Inc

Jennifer Skarren

DeChant Appraisal & Realty Srv

Michael DeChant

Deeley Insurance Group

Laura Bren

Jill Gormley

Delmarva Appraisals LLC

Beverly Wilson

Direct Mortgage Loans-Stephen Decatur Hwy

Billy Apostolou

Jeff Dobrzykowski

Direct Mortgage Loans-Ocean Gateway

Julie Keenan

Allen Payne

Draper & Kramer Mortgage Corp

Matthew Patterson

Eastern Title and Settlement

Josh Greene

Elite Valuations, Inc

Kathleen Hoffman

Stephanie Rinck

First Home Mortgage Corp

Conner Saulsbury

Robert Budd

Eric Short

First Shore Federal S & L

Susan Vincent

Randy Merritt Jr

Debra Tingle

Gary K. Marshall Insurance Agency

David Galeone

Gismondi Insurance Assoc

Beth Gismondi

Goosehead Insurance

Melissa Geeslin

Greater OC Chamber of Commerce

Nancy Schwendeman

Guaranteed Rate Affinity

Paul Soule

Hawkins Electric

Jordan MacWha

High Tech Home Inspections

Scott Donnelly

Christopher Lane

House Master

Kathy Hoffman

Integrity Appraisals

Karen Vara

L Turner Appraisals

LeRoy Turner

Lakeside Title Delmarva, LLC

Diana Dovel

Jenny Catron

Landmark Insurance – Financial Group

Colleen Richardson

Colleen Nichols

Main Street Home Loans

Norman Tucker

Kim Tucker

Debbie Wayland

Marr Appraisals Inc

Kenneth Marr

Elizabeth Filgueras

Maryland Department of Housing and Community Development

Cecilia Weller

Maryland Title Service

Helene Parks Richardson

Karen Graham

Joseph Raskauskas

Chrissy Roberts

Gina Williams

Mid-Atlantic Settlement Services

Susan Lloyd

Kelly Green

Mortgage Network

Hope Morgan

Patrick Clark

Hamilton Morgan

Joan Mulvaney

Kaytlyn Senkbeil

Movement Mortgage

Joe Brach

Liz Buckley

Christina Fuller

Justin Kozera

Kenneth Lee

Caleb Miller

Allen Payne

Pam Rocco

Jason Shoff

MSC Home Inspectors

James Howard

NATIONS LENDING

Chris Short

Savannah Kinavey

Oracle Home Inspection

Paul Vaillancourt

Primary Residential Mortgage, Inc

Amy Fichter

PrimeLending

Rod Flowers

Pro-Spect Inspection Services

Nicholas Strayer

Tori Cave

Jonathan Fourquet-Laboy

Tim Harriger

Eric Hastings

Bradley King

River Run

Hunt Crosby

RTI=Solutions

Stephen Gladwin

Megan Paul

Sage Title Group, LLC

Jennifer Thompson

Salisbury Neighborhood Housing

Cheryl Meadows

Michelle Neal

Amanda Smith

Shorlock Home Inspections, LLC

Jay Aydelotte

Cody Aydelotte

Superior Appraisal Service

Carrie Brown

T & G Builders, Inc

Gary James

John Rego

Tidemark FCU

Sam Kazmi

The Gold Standard Inspection Company

Todd Williams

The Mortgage Link, Inc

Chrissy Summers

Waterstone Mortgage

Jason Cook

Maurice Heckscher

Melissa Mattie

Kerry Runkles

Joe Steward

Whitecap Mortgage

Jocelyn Succarotte

Mark Succarotte

Whitehead Rental Management

Austin Whitehead

Micki Rickards