One of the things that I think is really important when looking at real estate market information is to be as hyper-localized as possible.
Clearly I wouldn’t compare home prices in Salem, OR to homes prices in Seattle: two different cities with different local markets. The same is true for within a local area. This is essential to pricing your home well since a new construction home is going to have a different buyer than a Historic Home.
I wanted to share with you the local SALEM inventories using absorption rates for the first quarter. For all of Salem residential homes we have an 11.2 month inventory
- For Older/Historic homes we currently have a 7.6 month inventory
- For new construction homes we have a 17.5 month inventory.
- For 2 bedroom homes we have a 7.6 month inventory.
- For 3 bedroom homes we have a 10.0 month inventory.
- For 4 bedroom homes we have a 15.0 month inventory.
- For condos we have a 27.5 month inventory.
- For manufactured homes we have a 6.7 month inventory.
- For upper end/luxury homes ($500K+) we have a 40 month inventory. (I used data from the last two quarters for this calculation).
Inventories have been creeping up slightly as sellers have been holding relatively firm on pricing. This trend will continue unless Salem sellers start to readjust their pricing to be more in line with market demands.
The higher end home market is in a very difficult time here, and I don’t anticipate these inventories coming down anytime soon.
If you have questions or need more specific market data, please feel free to call or email me.
(c) Copyright, 2008. Melina Tomson, All Rights Reserved. DO NOT COPY this without express written permission from the author.