Global Insights releases a quarterly report on home valuations by city. According to their latest report, released in December, Salem Oregon is still overvalued for real estate. Only three cities made the grade for extreme overvaluation…Bend, OR being one of those three.
According to the report, Salem Oregon is overvalued by 25.2%. That means we are ranked 14th in terms of overvaluation. Portland, Bend, Eugene, and Medford all make the overvaluation list as well. Now…in all fairness to Oregon cities…our properties tend to run “hot” to begin with due to the urban growth boundaries.
Other parts of the county that have seen significant declines are now showing up as undervaluated.
While I do think that the Salem metro are will continue to correct over this next year, I think it will be more along the lines of 5-10% correction (barring some major economic change). With foreclosures expecting to continue here, unemployment rates jumping up and potentially hitting double digits, many sellers just won’t have a choice but to drop their home prices in order to lure those buyers into a purchase.
- Global Insights Map for Valuation