The 2021 Salem real estate market in review
As most of you know, the real estate market in Salem is pure insanity. It is an exhausting market for buyers and sellers are filled with stress for pretty much everyone. I know most of you are thinking that sellers shouldn’t be stressed out, but trying to move from one house to another house in this market is very difficult and requires a lot of coordination. Moving up or down in house size is just not an easy task these days.
So how did the 4th quarter-end?
– Home sales down 2.2% quarter over quarter with 933 homes sold in the 4th quarter
– Days on the market down 1.9% to 52 days from list to close
– Median home price up 11.4% to $390,000
– Current inventory is 14 days
Overall, for the entire year, the median home price was $370,000 which was a 14.9% gain from 2020. I expect the median home price in Salem will head over $400,000 in 2022.
A balanced real estate market, where the pool of buyers and sellers are about the same size, yields an inventory number in the range of 5-6 months. At 14 days, there are a LOT more buyers than sellers. That said, the frenzy we experienced earlier this year has dissipated. Homes that require any kind of repairs are sitting on the market and we are even starting to see price drops for the first time in 18 months.
Homes that are move-in ready and require NO repairs are still receiving multiple offers and are being bid up, sometimes by as much as 15%.
The next 3 months will be telling to see if the market heats up to the levels we saw last spring or if remains a bit cooler than the frenzied market we saw a year ago. Low inventory indications mean it will likely be a frenzy again, but stay tuned.