Home prices in Salem Oregon
Phew. The year ended and it was a crazy one for real estate in Salem. Home prices? Any active agent can tell you that trying to get homes for buyers was difficult. Multiple offers were normal, and we were starting to see some homes fail to make appraisals. The final stats for the end of the year?
- Home sales were up 6.3% year over year.
- Days on the market had no change.
- The median home price was up 14% to $220,000.
I think home sales would have been higher had there been actual homes to sell. One of the biggest issues in Salem right now is the lack of affordable new construction. Builders weren’t able to fill the gap as the median price of new construction in Salem in 2016 was $339,000. That price point is out of reach for many home buyers.
Investors are out in force in the local real estate market now. With rentals being in demand, there are many small investors buying just one or two homes for rental purposes. Unfortunately, those are the homes that tend to be the most affordable putting further pressure on middle-class buyers. Flippers are incredibly active in the market too. Buying some of the worst, dilapidated homes in our city, they have been rewarded for their rejuvenation efforts as they are often getting multiple offers on well done remodels.
I don’t see 2017 being any different unless we start to head into a recession or interest rates rise. As of right now…
- Current inventory is 3.73 months
- The market favors sellers
Inventory is very low for this time of the year and I can say from personal experience having written up offers recently, that multiple offers are the name of the game this early into the year. So, if you are wanting to sell your home, you can get a quick ballpark estimate, or call me for a more complete opinion. It is a good time to be a seller. Buying a home? Have patience. You might have to write several offers to get a home.
Note:*The data in this report was created from data supplied by the WVMLS and is for single family properties that have under one acre of land.