The Silverton market continues to have real estate problems. Unlike Salem Oregon and Keizer, which have been correcting, Silverton seems “stubborn.” Now Silverton has the reputation of being a desirable place to live, which is true…it is a great small town in the Salem Oregon metro area, but buyers are clearly saying “not at those prices.”
The median home price for May 2009 was $238,950 and the average home price was $227,883. This is a 4.4% decline since May of 2008 pricing.
The current inventory is 20.2 months, which is a huge improvement for this market, BUT only 6 homes sold in May of 2009. Now this is a 75% reduction of the peak in 2006 and it is a 50% reduction from the more normal market in 2004. Either way you slice it, supply and demand are still out of whack.
36.9% of the Silverton real estate market are homes that were built in 2005-2009. New construction is a significant portion of this real estate market. When you compare that to a healthier real estate market such as Keizer where only 17.6% of active listings are newer construction, it seems that this is a cause of part of Silverton’s real estate woes.
Silverton has a long way to go to catch up to the Keizer and Salem Oregon real estate markets. Sellers are still unwilling to correct their prices to where buyers are willing to buy. The lack of any significant drop in the median home price is telling in the lack of sales.