“ Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.”

Introduction

Are you thinking about buying a home in Salem or Keizer? You're not alone. Our beautiful corner of Oregon is drawing more people every year. But the housing market can be tricky. Let's break down what's happening and what it means for you.

The Big Picture

Salem's housing market is changing. Prices are going up, but not as fast as before. In June 2024, the average home price in Salem was $485,000. That's 1.1% higher than last year. For every square foot, you're looking at about $271.

What does this mean for you? If you're buying, you might pay a bit more than last year. But the good news is prices aren't shooting up as fast as they were.

Supply and Demand

Here's the thing: there aren't enough homes for everyone who wants to buy. This is called low inventory. It's been a problem for a while, and it's making the market competitive.

In February 2024, there were more homes for sale than last year. But it's still not enough. There's only about 3 months' worth of homes available. A balanced market usually has 5-6 months of inventory.

What does this mean for you? You might have to act fast when you find a home you like. But don't worry, we'll talk about how to handle that later.

Competitive Market

Because there aren't many homes for sale, buyers are competing with each other. In February 2024, about 24% of homes sold for more than the asking price. That's a bit less than last year, but it's still a lot.

Some areas are more competitive than others. Wood Village, Clackamas, and River Road are among the top 10 most competitive cities in Oregon.

What does this mean for you? Be prepared for a bit of a challenge. You might need to make strong offers and act quickly. But don't let that scare you off. With the right help, you can still find your dream home.

Renting vs. Buying

If you're renting now, you might be wondering if it's time to buy. Here's what's happening with rent:

• The average rent in Salem is now $1,371

• Rent has gone up 22% in the last five years

• But in 2023, rent only went up by 1.8%

• More apartments are being built, which might keep rent increases low

Buying a home is a big decision. It's not just about money. It's about putting down roots and having a place that's truly yours. Even with higher prices, many people find that buying is worth it in the long run.

Affordability Challenges

Here's a tough truth: many people in Salem are finding it hard to afford a home. At the end of 2023, only 13% of homes were affordable for a family earning Salem's median wage. That's much lower than the national average of 38%.

But don't lose hope. There are programs to help first-time homebuyers. And remember, "affordable" doesn't mean "impossible." It just means you might need to be creative or flexible in your search.

Tips for Home Buyers

Ready to start your home-buying journey? Here are some tips to help:

1. Know your budget: Figure out how much you can afford before you start looking. Don't forget to include things like property taxes and insurance.

2. Get pre-approved: This shows sellers you're serious and can actually buy their home.

3. Be ready to act fast: Homes in Salem are selling in about 37 days on average. When you find one you like, be prepared to make an offer quickly.

4. Consider different areas: Some parts of Salem and Keizer might be more affordable than others. Be open to exploring new neighborhoods.

5. Look at different types of homes: Single-family houses, townhomes, condos - each has its pros and cons. Keep an open mind.

6. Work with a local real estate agent: They know the market and can help you navigate the process.

7. Don't skip the home inspection: It might cost a bit upfront, but it can save you from expensive surprises later.

8. Be patient: Finding the right home can take time. Don't get discouraged if it doesn't happen right away.

The Future of Salem's Housing Market

What's next for Salem's housing market? Here's what experts think:

• Prices might keep going up, but slowly

• More homes might be built, which could help with the low inventory

• Interest rates could change, which affects how much you can borrow

Remember, no one can predict the future perfectly. The best time to buy a home is when it's right for you and your family.

Why Salem and Keizer?

If you're new to the area, you might be wondering why so many people want to live here. Salem and Keizer offer:

• Beautiful natural surroundings

• A growing job market

• Great schools

• A friendly community

• Lots of outdoor activities

• A perfect balance between city life and small-town charm

From the beautiful Riverfront Park to the bustling downtown, from the peaceful neighborhoods to the exciting events, Salem and Keizer have something for everyone.

Wrapping Up

Buying a home in Salem or Keizer in 2024 might be challenging, but it's not impossible. The market is competitive, but prices aren't rising as fast as before. There are fewer homes available, but new ones are being built. It's a complex situation, but with the right information and help, you can navigate it successfully.

Remember, a home is more than just a financial investment. It's a place to build your life, raise your family, and become part of a community. Salem and Keizer are wonderful places to do all of that.

If you're ready to start your home-buying journey, reach out and we'd love to start the journey with you. They can help you understand the market, find homes that fit your needs, and guide you through the buying process.

Here's to finding your perfect home in Salem or Keizer!