If you’re wondering how the Salem real estate market is shaping up as we move through fall, the latest data gives us a clear view. October 2024 has brought notable shifts, from a cooling in median prices to changes in inventory and new listings. Here’s a breakdown of what’s moving in the market—and what’s not.
Median Sales Price and Price Per Square Foot
The median sale price in Salem is currently $425,000, marking a slight 1.3% decrease from September. Interest rates popped back up in October after the FED dropped rates and the interest rate drop in September was short lived. Overall home prices are up 1.1% year over year, which is what we need to see for affordability for home buyers. Home prices hitting a plateau for a few years to let salaries catch up.
Market Activity: Sales, Inventory, and Listings
In October, closed sales in Salem were at 188 homes, which is an increase of 12.6% over September, and October of 2024 was better than October of 2023. This makes sense as rates dropped in September so buyers who were watching homes jumped in and locked in the better rates while they lasted. Buyers continue to show interest, albeit cautiously. However, the inventory of active listings has declined by a notable 7.8% to 463 homes. This decrease is creating some tension in the market, as buyers can’t find what they want and are stepping out of the market.
New listings saw a slight 4.8% increase, reaching 217. This rise in listings is a welcome relief to the market, especially as fall often sees a slowdown. However, the median days on the market increased to 67, a 1.5% rise from the previous period, showing that homes are staying available a bit longer. Buyers are taking their time to make purchasing decisions, particularly as interest rates and economic concerns play a role.
List Price and Months Supply of Inventory
One of the more interesting statistics is that sellers are receiving 98.9% of the list price, which is a 0.6% decrease. This means there’s some wiggle room in negotiations, likely due to the balanced buyer interest and slightly softening price expectations. Additionally, the market is sitting at a 2.5-month supply of inventory, down by 18.1%. Generally, a balanced market has 5-6 months of supply. Salem’s market is still tilted in favor of sellers—but only slightly.
This data came from the WVMLS and Altos.