Below is an overview of the Ocean City real estate market that summarizes all of the key market indicators.  The overview will provide valuable insight as to how the market is performing overall and can be helpful in determining the right time to buy or sell.  If you have any questions or would like to discuss the Ocean City real estate market in greater detail, feel free to contact me directly anytime at 443-614-9179 or via email below. 

Active Listings

There are currently 307 homes, condos and townhomes for sale in Ocean City, which represents a 64% increase in inventory over 2023.  With the sales pace having normalized, inventory has had the opportunity to build as a whole.  As you get into specific segments of the market (oceanfront, bayside waterfront, West Ocean City, etc.) quality inventory is still limited and the more attractive listings sell relatively quickly.  Approximately 15% to 20% of the overall inventory is overpriced or undesirable properties with unrealistic Sellers, which is common in second home markets where it isn't an inconvenience to put a property on the market and "see what happens".  

Active Listing Prices

The average price of real estate listings in Ocean City is currently $601,000 and the median listing price is $495,000.  The median listing price for the year in Ocean City is $492,000, which is a 7% decrease from 2023.  This pricing decrease is to be expected with an increasing inventory.  As the inventory increases and becomes more diverse the higher priced listings have less of an impact on both the average and median active listing prices.

Sold Listing Volume

89 Ocean City properties went to settlement during August bringing the total number of sold listings for the year to 725, which is largely unchanged from 2023.  Now that the Ocean City real estate market has normalized, a steady year-over-year sales pace is a positive sign in light of higher mortgage rates and limited quality inventory.

Sold Listing Prices

The average sales price of Ocean City homes and condos that sold during August was $518,000 and the median sold price was $454,000.  The median sold price for the year in Ocean City is $430,000, which is a slight increase over 2023.  The basic economics of supply and demand have led to prices holding steady.  While overall inventory has increased, there is not enough quality inventory to satisfy Buyer demand.  As a result, quality listings sell quickly at top of market prices.  

Average Sold Price per Square Foot

The average sold price per square foot in Ocean City during August was $434.  The average sold price per square foot for the year in Ocean City is $447, which is a slight increase over 2023.  Sold price per square foot is a good indicator of overall value and it is a positive sign when it is holding steady or increasing year over year.

Absorption Rate

The absorption rate in Ocean City currently stands at three-and-a-half months, which is a one-and-a-half month increase over this point in 2023.  Absorption rate calculates how long it would take to sell all of the current inventory at the current sales pace.  Although the sales pace has remained steady, inventory has increased which has subsequently caused the absorption rate to increase.

Sold to List Price Ratios

Ocean City properties that went to settlement during August sold on average at 97% of the list price.  The average sold to list price ratio for the year in Ocean City is 97%, which is a 1% decrease from 2023.  An increase in inventory in some segments of the Ocean City real estate market has caused increased competition amongst those Sellers.  As a result, Sellers in those segments of the market have to be a bit more negotiable in order to secure a contract on their property.  The more attractive properties throughout the Ocean City real estate market that are priced correctly still sell close to or at the asking price.

Days on Market

Ocean City properties that went to settlement during August averaged 59 days on the market.  Average days on the market for the year in Ocean City are 51, which is a 38% increase over 2023.  Buyers will have more options to choose from as inventory increases, which will lead to an increase in days on market.  The listings that sell at the longer end of this range are the overpriced and undesirable properties that I alluded to earlier.  Desirable Ocean City properties that are priced correctly still sell within a few weeks of being listed.  The overpriced and undesirable properties sell once they are priced correctly.

Pending Sales Volume

89 Ocean City properties went under contract during August bringing the total number of contracts written for the year to 788, which is a 2% decrease from 2023.  This was to be expected as August is historically a slow month during normal markets.  Look for a bounce back in this indicator in the coming months as September has been a good month for the Ocean City real estate market and all indicators point towards this trend continuing throughout the Fall.

Pending Sale Prices

The average price of Ocean City properties that went under contract during August was $649,000 and the median pending sale price was $495,000.  The median pending sale price for the year in Ocean City is $447,000, which is a 4% increase over 2023.  Pending sale numbers provide insight as to where the market is headed in the coming months.  Look for year over year sales volume and average sales prices to increase as we head into the Fall months.

New Listings

113 new properties were listed in Ocean City during August bringing the total number of new listings for the year to 890, which is a 12% increase over 2023.  To put the inventory issue into perspective, approximately 83 of these are quality listings that are priced correctly.  This is not enough quality inventory to satisfy the average monthly sales pace.  Quality inventory (not mortgage rates) is the Ocean City real estate market's biggest challenge.  There are plenty of qualified, motivated Buyers active in the market.  There is however not enough quality inventory to satisfy them, which is ultimately holding the market back.

New Listing Prices

The average price of new listings in Ocean City during August was $574,000 and the median new listing price was $500,000.  The median new listing price for the year in Ocean City is $474,000, which is an 8% increase over 2023.  These price increases are the result of the makeup of the new listings that are coming on the market and continued price appreciation throughout the Ocean City real estate market.