Here is where our local markets currently stand. Market data information is from the local WVMLS. Here is what is occurring in the city of Salem in real estate…
Average Sales price:
The average sales price for the second quarter was $230,180. This is a 7.1% increase from the first quarter. The average sales price is down 1.9% from last year’s average.
This is a nice indicator of possible stabilization in our local real estate market.
90 day Inventory:
Salem has a current absorption rate of 150.6. This places the current Salem inventory at 10.8 months.
Home Sales Closed:
In the 2nd quarter this year, 452 homes closed on the market. That is down 32.8 % from the same time frame last year when 673 homes closed in the second quarter. Sales volume is still off, which may impact the stabilization in prices in the 3rd quarter.
New Home Construction:
New home sales were down 44% from the same time frame last year. The average new home construction price is $329,689 up 1.3% from the same time frame last year, but down 6.3% from the last quarter of 2007.
Hopefully as builder’s continue to scale back we will start to see more stabilization of these numbers as supply and demand come more in line.
The condo market traditionally has not been a large part of the Salem market. With several luxury condos coming to market it will be. The current average sales price is $156,489 which down from the first quarter by 12%. This average will probably swing wildly as the luxury condos sell in the marketplace. Sales are down 22% from the same time last year.
Luxury Market ($500,000+):
There was a 63.6% decrease in luxury home sales from the same time as last year. The luxury market continues to suffer as lender’s strengthen debt to income ratios, and tighten lending standards.
If you need more specific market information, please feel free to call or email me with your specific area, and I will provide you with a more detailed report.
(c) Copyright, 2008. Melina Tomson, All Rights Reserved. DO NOT COPY this without express written permission from the author.