The Salem market made a swift turnaround, like many areas of the country. In May, it was the best home sales (for single family homes) for three years and it was only eclipsed by the year that there was the tax credit deadline for June. Spurred by low interest rates, a housing price bottom, and a reduction of foreclosures on the market, buyers dove in to buy homes. The median home prices are up 15.5% year over year, but we will have to see if those gains hold all year as interest rates are expecte to creep up as the year continues.
Inventory is lower than it has been in a while. Salem overall is at 4.7 months of inventory, which places it in a seller’s market. When you look at the data a bit more, you see where the really hot market is. If you have a home under $200,000 to sell, there is only a 2.5 month inventory. This makes sense as this price level is commensurate with Salem incomes. These homes are flying off the market if they are in good condition and typically with multiple offers.
Between $200-$300,000 is 6.7 months. This is the lowest this has been in a while because our starter home buyers are finally able to sell and move up. $300-$400,000 is still in a solid buyer’s market with 10.6 months of inventory, and anything above $400,000 is well into a buyer’s market at 25 months of inventory.
These numbers were crunched from data supplied by the WVMLS.