Where is the Salem Oregon real estate market headed in 2009? You really don’t need me to tell you that. I think we all can guess that it is heading down. How far…well that depends on the status of those state jobs that employ so many Salemites…
This market snippet is for the single-family, non-acreage property, homes real estate market here in Salem Oregon.
30 Day Absorption Rate 74 Down Inventory 19.6 months Up Average Sold Price $204,245 Down Median Sold Price $179,589 Down DOM 131 Up
Salem’s inventory increased 4% over January 2009. I would not be surprised to see Salem hit the 20’s next month for inventory. Just a reminder…inventory fluctuates on a daily basis and has seasonal highs and lows. The average home price dropped 2.8% in February over January, which is not surprising given the local economy. With a 9.3% unemployment rate in Salem AND difficult lending standards, very few people are qualifying to purchase homes over $300,000. As such the average home price and median home prices should continue to decline as less expensive homes, foreclosures, short sales, and motivated sellers snag buyers.
7.9%. That is the drop in the median home price in Salem Oregon from January. This is significant since the median home price is a much more difficult number to shift. This is the halfway point where 50% of homes sold were above that price and 50% below that price. With only 77 sales to show for January and now 74 for February, this is a bumpy start to the 2009 real estate year. Many of the ugly real estate numbers that my fellow agents shared with me from across the country will be trending here. Now that doesn’t mean home prices are going to drop 50% here folks…it just means that we are going to decline.
Those numbers may not sound great but at least the market still has a pulse. As soon as the inventory drops, I’m sure Salem will get a boost in sales and property values.
You know that median price is pretty close to the coveted 3.0 Home price to income ratio. We won’t be like other parts of the country, and in comparison to some we are doing well. It will be a difficult year here, but I think the worst will be over (in terms of price corrections) this year. I think we will plateau after that.