Tracy Jones, Broker, Salem, Oregon Real Estate

Salem, Oregon Real Estate Watch

What’s happened in 2009 so far in Salem? What’s the market doing? Should I list my home now? How long will it take to sell my home? Are prices rising in the Willamette Valley, or falling?

These are all great questions I get from clients all the time. Many times, questions involve consulting my crystal ball, which is no better and no worse than anyone else’s. I can however, share what’s happened through November 2009, so perhaps where we’ve been can give you some idea of what may well happen in 2010.

Starting with a broad view, Active Listings (homes on the market for sale) are down 10.84%. So far in 2009, 5,273 homes have sold compared to the top of the real estate boom in 2005, where a total of 11,576 homes were sold – a substantial drop.

In 2006, roughly $2.4 billion in real estate was sold here in the Willamette Valley vs. so far, in 2009 (again, through November), just over $1.1 billion. With some luck, we may hit the halfway point of 2006.

So far, year-to-date, the average home sales price is $209,800. That number peaked in 2007 at $250,205. A retracement of $40,405 in two years – again, very substantial.

On new construction, of which there are 674 active units (residential) in the valley, the cost per square foot has returned to pre-2006 levels of $130/sq ft. However, the average new home size has shrunk, reflecting the squeeze many builders are feeling, from 2,013 sq ft in 2007, down to 1,847 sq ft in 2009 (again, year-to-date).

Many local “housing” forecasters are predicting home prices to continue to drop, but only slightly, with some leveling at the end of 2010.

Good time to buy? Depends on your motivation, what your goals are and so on.

Good time to sell? You’ll have competition for sure, but if your home is priced to sell, uniquely positioned in the market (think “staging”) and heavily advertised both on the internet and in other, more traditional methods (that still work!) in an aggressive fashion, you stand a far better chance of hitting your goals.

I am currently accepting a limited number of clients for 2010. For more information on retaining me for your real estate transactions, visit my website at www.TracyJonesBroker.com.

* Statistics provided by WVMLS.com. If your home is currently listed with broker, this is not intended to be a solicitation.

Tags: real estate, Salem Realty Trends, Trends