April 2023 Monthly Market Checkin

October 2, 2023

Some of our Buyer Needs:

(Multiple Buyers) Small Acreage out South.  Primary BR on the main level. 1600-2500 SF 3+ Beds, 2+ Baths.  Up to $800,000

South Salem in town.  Single Level with updates.  3/2 in a desirable neighborhood.  Up to $500,000

Small acreage Bare Land SE Salem and outskirts to build a new home.  $300,000

Single Level in Keizer or NE Salem.  3/2 up to $450,000.  Needs time to transition from a current sale.

Central, West or South Salem. 2+ beds 1.5+ baths that is move in ready up to $375,000.

West Salem with a shop area.  $400,000

1+ acre of bare land Central Salem zoned to build a Health & Medical Facility. 

West Salem or outskirt Polk County. 2000+ SF,  4+ bed, 2.5+ baths and newer.  Open floor plan with a large enough fenced back yard.  $650,000.  June or July.

West Salem or outskirt Polk County. 3000+ SF, dual living capabilities, 5+ bed, 3+ bath,  Primary Bedroom Setup on main floor.  Large yard for kids to play.  Up to $800,000.

Linn County small acreage, single level with Large Shop space for RV, Woodworking.  Up to $800,000.

Do you know anyone who is willing to sell?  Inventory is still so low that many of our buyers are having a hard time finding housing.

I want to thank you for your continued business, and I always want to bring you great value in the Real Estate market. I spend time evaluating our local market so that you are well educated to make a wise decision.

Here is a synopsis of our current market based on the most recent statistics.  If you have any questions, please give me a call to discuss details. 

Current Active Listings (All Types)1961Down 0.46% from last month & up 43% from this time last year
Current Pending Listings1014Up 4% from last month & down 15% from this time last year
Sold Listings last Month730Up 33% from last month & down 26% from this time last year
New Listings last Month980Up 16% from last month & down 26% from this time last year
Months of Inventory2.44Down 1.6% from last month & up 68% from this time last year
Absorption Rate37%*up 31% from last month & down 68% from this time last year
*Based on current active listings vs sold listings for the past month
Average Sales Price in All Categories$444,000Down 1.6% from last month & down 3.8% from this time last year
Average Residential Sales Price$478,000**Up .84% from last month & up 1.5% from this time last year
**Based on Willamette Valley Multiple Listing Statistics
Average Owner Occupied Interest Rates6.28%***Down 7% from last month & up 48% from this time last year
***Based on Freddiemac.com Statistics of 30 year fixed mortgage

*Correction: MLS stats for Months of Inventory were incorrect from WVmls last month. Correct data was 2.48.

We may be nearing the bottom of our slowdown, but time will tell. Low inventory still hedges against market drops even though people on the networks are sounding the alarms that Real Estate has declined. Real Estate is always local, and in our market, we are seeing activity pick up. The weather has been holding things back a bit, but once it breaks and the sun shines itself for more than 30 seconds; we can expect people to start moving around again. Hopefully that will be soon! If we separate out the active listings that are actually available, we only show to have approximately 812 homes for buyers to choose from in our Mid Valley according to the WVmls. After a small corrective and flat season, Residential prices are increasing again in 2023.

The CPI numbers came out today and the Headline shows that it came down from 6% to 5% YOY, but the Core Rate raised .4% from last month and went from 5.5% to 5.6% YOY; which is what everyone is focusing on. It has come down considerably from last June of over 9%! Overall we are seeing the trend start to crest and the economy is slowing down. We are keeping a close eye on next month as many believe that Mortgage Rates will start to decrease on a more consistent level starting in May. We hope that rates will continue to benefit the further we get into Summer and Fall of this year. Most experts believe that the days of 3% and 4% rates are days of the past for a while because the rates were suppressed too low for too long, which is one contributing cause of our problems today. Again, time will tell.

Interestingly, the ADP Employment Report shows sectors that are contracting and ones that are expanding. Construction has increased and the typical culprits of entertainment, leisure and hospitality continue to remain high as well. The FED is still expected to make some adjustments on May 3rd as they appear to believe they need to do more to slow things down even further. As we see this into fruition, we are hoping to see Mortgage Rates start to decline to a more reasonable level. Every time rates drop we see buyers get off the fence, so expect more buyers to get back into the game when this happens. We have often called this time the ‘Winter Window’ for buyers, but expect that if rates decrease to a more comfortable level then many more buyers will jump back into the market.

If you are planning a move, then get ready. If you are a seller, then you will want to strategize a transitory plan. If you are a buyer, you’ll want to position yourself to compete at the highest level.

Give me a call as I can help you navigate through all of these moving steps.

Paramount Oregon Paramount Oregon
© 2024 Brian & Nina White
1008 12th St. SE Salem
Principal Brokers Licensed in the State of Oregon