This has been a great year for real estate so far in 2021, with a seller’s market, steadily rising home prices, the lowest interest rates ever seen, and the lowest inventory in many years. 2021 has proven to be an interesting year for residential real estate. If you work in real estate, construction, development, or the housing market in general, it’s important to stay up-to-date on the local market to stay well-informed and offer the best value to your clients. If you’re a business owner, have a 401k plan, or are an investor, it’s important to stay on top of the residential real estate market, as it has a huge impact on the local and national economy. We hope this quarterly residential real estate market report helps you understand property values. If you’d like us to include anything else, please let us know.
Home Prices:
In the Salem Metro Area, we saw home prices continue to grow relative to last year in the second quarter of 2021. The current median home price in the Salem area is $403,700
New Construction:
For new construction in the Salem Metro Area, we are seeing homes built at a higher rate, about 24.2% higher than the long-term average. If this continues for a long time, it could cause prices to moderate as the supply of homes increases and will help get us back to a place where we have a normal inventory of homes.
Future expectations:
In Oregon as a whole, home prices for the next 12 months are expected to rise by about 1.4%, which is a decrease from the prior 12-month growth rate of 1.7% but is higher expected growth than the U.S. as a whole (1.1%).
