The first quarter has ended for the real estate market. Here is where our local markets currently stand. Market data information is from the local WVMLS.
Average Sales price:
The average sales price so far this year is $214,957, down 8.3 % from last year's $234,779. What this means for you as a seller, is that it doesn't matter what your neighbor got last year, you probably won't get that this year. Prices are still correcting.
Home Sales Closed:
In the first quarter this year, 377 homes closed on the market. That is down 28.3 % from the same time frame last year when 526 homes closed in the first quarter. What this means for you as a seller is that you have to be the best house with the best price. Inventory is climbing.
New Home Construction:
New home sales were down 46% from the same time frame as last year. The average new construction home price so far this year is $311,920, which is down 11.4% from last year's average of $352,009. There is significant new construction inventory on the market in the Salem real estate market.
The condo market is not a large percentage of the Salem real estate market. Condo sales are down 54% from the same time frame as last year. This sounds like the condo market is doing poorly, but that is not the case. The average condo priced jumped 25% from $141,897 to $177,831. I would expect this average to increase this year with the continued construction of luxury condos at Creekside Estates, the Meridian and the Riverplace. There are fewer lower end condos on the market, as they are being replaced by luxury ones.
Luxury Market ($500,000+):
The luxury real estate market in Salem has been hit very hard. Due to the lack of liquidity in securing jumbo loans, home buyers are just unable to come up with needed cash to purchase high end homes.
There was a 94.7% decrease in luxury homes sales from the same time as last year. There was an 8.0% drop in average price. Nothing has sold for more than $525,000 here in Salem Oregon so far this year, as recorded on the MLS. The woes of the jumbo loan market are very apparent here in Salem.
If you need more specific market information, please feel free to call or email me with your specific area, and I will provide you with a more detailed report.
(c) Copyright, 2008. Melina Tomson, All Rights Reserved. DO NOT COPY this without express written permission from the author.