Salem Oregon Real Estate Market Update and News

by David Brown, Broker

2009 Market Trends
June
A Snake in the Closet ?
THE NATIONAL REAL ESTATE MARKET HAS BEEN IMPROVING FOR THREE MONTHS IN A ROW...BUT...
The National Association of Realtors reports that pending home sales are up three months in a row. The combination of low interest rates, first time buyer tax credit, affordability, and an increase in the consumer confidence level could all be factors playing in to a renewed start of a new economic cycle. Not all areas of the country and market segments are moving in the same direction. In Salem we had a growth in activity and then a lull, which was reported to me by a title company rep. We are seen an increase in pending sales but not all are closing. It is like a recent real incident when an associate of mine was showing a home to a prospective buyer. There was a real snake in the closet! Yes, sometimes truth is sranger than fiction. It was non-poisonous but reminded the woman who walked into the closet of ones that were poisonous where she grew up. Needless to say, my associate got rid of the snake problem and finished showing the house ! The market may still have "snakes in the closet" - tougher lending requirements, price competition from foreclosures and short sales for owners who are trying to sell, the unemployment rate (12% in Oregon) and sluggish economy (even though improving) to name a few. Bottom line: each situation must be evaluated based on all available facts. If you are planning to buy or sell a home then there are a number of things to consider. Summer is here, and this is the traditional real estate season. Let's all enjoy moving forward.

SALEM/KEIZER - MAY MLS STATS

Activity is definitely picking up. But we still have a huge inventory of homes on the market. Sellers continue to reduce prices to compete with other sellers, foreclosures, or after having few or no showings for weeks or months. Lenders are tough and before you look for homes you need to be "pre-qualified" to see if and what home price range you are qualified to buy. Need help? Contact Us

Through MAY 2009

In the month of May 2009, there were 1275 new listings that came on the market and a total of 7336 listings available.  In the month of May 2008 there were 1639 new listings that came on the market and a total of 7506 on the market.  That is a 2.26% decrease in listings available this year over last year at the same time.

In May 2009, there were 414 closed sales.
With that number of closed sales we have approximately 18 months of inventory on the market.

Days on the market currently are:
Salem/Keizer:      139
Benton County:   144
Linn County:        133
Marion County:   1455 Polk County        140

Closed Sales in Units for the last six years:
Through the end of May 2004:  3523
Through the end of May 2005:   4230
Through the end of May 2006:   4305
Through the end of May 2007:  3795
Through the end of May 2008:  2484
Through the end of May 2009:  1755

The percent of sales price to list price was 90.6% in Salem/Keizer, 91.3% in Linn and Benton County, 87.7% in Marion County, and 90.5% in Polk County.

Average Sales Price comparing last year to this year:                                     
Area                              May 08      May 09      %change
Salem/Keizer                 $224,774    $208,312       -7.4%
Benton County              $303,891    $274,000       -10%
Linn County                  $191,061    $174,512       -8.7%        
Marion County             $246,545    $210,834       -14.5%
Polk County                  $221,806    $198,712       -10.5%
Source:  Willamette Valley Multiple Listing Service