We’ve all heard how the housing market has changed over the past couple of years. To get the scoop, we went to the top and asked Gwen Eskridge, Associate Broker with Coldwell Banker Chesapeake Real Estate Company and President of Mid-Shore Board of Realtors.

 

EEDC: Do you agree that there has been a change in the housing market?

 

Gwen Eskridge (GE): Yes, I think a shift is happening right now. I believe home prices will continue to increase, but not at the rate it has in the past year. Nationally, we’re looking at a 9% drop in home sales compared to 2021, with an increase in home prices of 8%. Regionally, we’ve seen an increase of 9.6%, and over that same period, Easton’s median home prices increased by over 12%.

 

EEDC: What’s accounting for the differences?

GE: What we’ve seen is that Easton has held its value more so than other places in the county or other areas on the Eastern Shore, although it’s hard to make comparisons since people are drawn to our area for different reasons. If you ask us ten years from now, we might put Cambridge in the mix as one of the places to live because of all the waterfront development they’re doing and the money that is being put into rehabs, new businesses, and new restaurants.  

Also attractive are areas with ease of regulations and a speedy permitting process. This draws in investors, bringing in new businesses and residents.

EEDC: What are agents reporting to you about the buyers currently looking for homes vs. those from a few months ago?

GE: We’ve seen some buyers getting priced out of the market due to the increase in interest rates. Families that qualified for a mortgage when rates were 3-4% now no longer qualify at the 5-6% rate. I’ll send you some examples so that people can better understand how this increase affects new buyers.

EEDC: From a lender’s perspective, what do you predict will happen to compensate for this increase?

GE: ARMs (Adjustable Rate Mortgages) are going to be coming back to some degree. Even though we got into some problems with that in the past, we’re not going to see that this time because lenders will be better qualifying buyers now.

EEDC: What are buyers or sellers doing?

GE: You’re going to see innovative ways for people to purchase a property. I just had one where we had to add a lot of the closing costs into the sales price to help bring down the interest rates. Of course, it still has to appraise for that amount.

EEDC: So that’s a difference, no? Weren’t people buying sight unseen with no home inspections?

GE: They still are to some degree. I have a property I’m representing in Queen Anne’s, and the buyers were not there on two of those offers. They saw the property virtually.

As far as home inspections, I have my buyers do them, but in some cases, we do an ‘as is sale,’ and the inspection is for information purposes only.

EEDC: How is the inventory?

GE: We’re way down. Historically down. So, for instance, there is only one currently available under $250,000. I’ll include a breakdown of the rest.

EEDC: What advice are you giving buyers?

GE: Homes continue to sell fast (see the breakdown). It took an average of 34 days to sell in May 2021. Today, the average number of days a home is on the market is 22 days.  Buyers need to be able to make an offer quickly, and, of course, being pre-qualified is essential to making a fast offer.

EEDC: Let’s turn to the rental market. How are the inventory and pricing?

GE: There is very little inventory, and rental prices have increased dramatically. I just rented a house in St. Michaels (that used to rent for $1200) for over $1800 a month. And I’m putting another one on the market for $1850.

EEDC: The trend a couple of years ago during the height of the pandemic were people moving here looking for a home that had space for an office, somewhere they could work remotely. Is that still the case?

GE: Probably 90% of the people I work with are looking for office space in the house. This brings up an important point. All these people coming in from the metropolitan area expect the internet connection to be similar to what they expect from an electricity connection– readily available. But it’s not that way here. I know realtors who told me they’ve lost sales because of the lack of adequate internet services. Home offices for remote working are an important selling point. It’s good to know that Easton Utilities and Choptank Electric are working as fast as they can to bring broadband connectivity to those areas of Talbot County where it is needed. It will make a difference.

EEDC: Who are the people renting and buying here in Easton? Are these new residents to the Eastern Shore?

GE: I’ve seen people coming from all over the place. They’re here from New York, New Jersey, Philadelphia, D. C, and Baltimore–mostly from major metropolitan areas, trying to get away. Easton and our regional market are still and will continue to be a location that draws families to where they want to live.

EEDC: Last question, Gwen, this is your second time around as president of the Mid-Shore Board of Realtors. What do you want people to know about your group?

 

GE: Mostly that our group works hard to give back to our community. We have some fundraisers coming up that we want people to know about. These are:

 

Yeti Cooler to benefit the After School and mentoring programs for the YMCA’s in Caroline, Talbot & Dorchester Counties. The drawing is on August 18th. https://midshoreboardofrealtorsmsbr.growthzoneapp.com/ap/Events/Register/vP3kAnjP

 

A Bushel of Crabs to benefit the After School and mentoring programs for the YMCA’s in Caroline, Talbot & Dorchester Counties. The drawing is on August 18th. 

https://midshoreboardofrealtorsmsbr.growthzoneapp.com/ap/Events/Register/vP3kAnjP

 

Golf Tournament benefiting Habitat for Humanity Choptank and Tuckahoe on September 26th at Hog Neck Golf Course in Easton.   https://members.midshoreboardofrealtors.com/calendar/Details/msbr-2022-golf-tournament-623568?sourceTypeId=Hub