Residential Real Estate Market: 2nd Quarter Report, 2021
This has been a big year for real estate so far in 2021 with a seller’s market, home prices rising at increasing rates, lowest interest rates we have ever seen, and also the lowest inventory we have seen in many years… 2021 has proven to be an interesting year in residential real estate. If you’re in the Real Estate industry, Construction, Development, or the housing market in general, it’s important to stay up to date about our local market so you can truly be informed and deliver the best value to your clients. If you’re a business owner, a person with a 401k, or an investor; it’s good to have a pulse on the Residential Real Estate Market because it has a HUGE impact on our local and national economy. We hope this quarterly report on the Residential Real Estate Market brings you to value, and please let us know if there is anything else you would like to see included.
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
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.
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%).