During the pandemic we saw an incredible boom in the housing market. Two years later we are beginning to see a shift.
"New single-family home sales dropped by 16.6 percent month-over-month, tallying the biggest monthly drop in nearly nine years, while sales plunged 26.9 percent year-over-year to a seasonally adjusted annual rate of 591,000, according to data released by the U.S. Census Bureau and the Department of Housing and Urban Development on Tuesday."
Existing home sales are also declining for the third month in a row. Sales were down 2.4% from the prior month and 5.9% from one year ago.
According to a National Association of Realtors (NAR) article linked here, the total housing inventory at the end of April amounted to 1,030,000 units, up 10.8% from March and down 10.4% from one year ago (1.15 million). Unsold inventory sits at a 2.2-month supply at the current sales pace, up from 1.9 months in March and down from 2.3 months in April 2021.
With interest rates at 5% or higher and rising home prices, buyers are backing off. There is a leveling off which is creating a more balanced supply and demand.
If you are curious to see how New Home Sales looked in Salem and Keizer from January through April of 2020, 2021, and 2022 see the graphs below. Data pulled from the WVMLS.
In April 2021, 27 new homes were sold at an average price of $386,265.74. In April of 2022, 36 new homes were sold at an average price of $452,286.58, which is over a $65,000 increase. So although we are starting to see these market changes around the country, Salem and Keizer are still selling at high numbers.
If you are curious to see how Existing Home Sales looked in Salem and Keizer from January through April of 2020, 2021, and 2022 see the graphs below.
You can see a similar trend throughout April 2020-2022 where units sold are increasing as well as average sales price.
To get an idea of what is currently on the market there are 38 homes under an acre in Salem and Keizer that have been listed since Monday, May 23rd that are still in Active Status. Of those 38 the average sales price is $475,397.24. The lowest being a 2 bed, 1 bath, 1318 sqft listed at $325,000.00 and the highest a 4 bed, 3 bath, 2664 sqft listed at $794,900.00.
To see everything currently on the market check out www.legacyrehomes.com or reach out to us today to set up your own personalized listing alerts sent straight to your email.