Salem, OR Housing Forecast For 2024: Prices Climb Due to Supply Shortage

Published:
May 2, 2018
Last updated:
January 12, 2024
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We’ve written about the Salem, Oregon real estate market in the past, pointing out that limited inventory was driving prices north. More recent forecasts for the Salem housing market suggest that prices will continue to rise throughout 2024.

Salem’s housing market is considered warm right now. Prices are on the rise, largely as a result of limited inventory. Let’s take a closer look at Salem’s real estate market today and where it’s expected to be over the coming months.

Latest Forecast for Salem, Oregon Housing Market

Like most cities across Oregon, Salem’s home prices have been relatively stagnant over the past year. According to the latest real estate market reports, the median sale price in Salem, Oregon inched up to around $414,513 by January 2024, according to Zillow. That was an increase of 0.5% from the same month a year earlier.

RedFin was showing a median home value of around $425,000 for that same month.

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It’s a (Short) Supply and Demand Story

As usual, there is a supply and demand story behind this price growth. The short version is that demand is exceeding supply within the Salem real estate market, and this is boosting home prices.

Right now, the US is going through a nation-wide housing shortage. But among all states, housing shortage is most pronounced in Oregon compared to other states in the country, according to Freddie Mac. Many centers across the state are experiencing a low supply of housing inventory, including Salem and Portland, where inventory is currently around 2-months’ worth of available homes for sale.

A “balanced” market is said to have around five or six months worth of supply. This means that the real estate scene in Salem is still fairly constrained, from an inventory standpoint.

At the same time, Salem is experiencing a rapid increase in population, which further fuels demand for housing and puts downward pressure on available inventory.

But local home buyers shouldn’t be too upset by this news. It could be worse. While the Salem housing market has a below-average supply of homes for sale, things aren’t as tight as they are in Portland.

While the Salem real estate market will likely remain tight throughout 2024, there are houses to be found. Home buyers will just have to do more research (and driving) than they might have done in the past, when there were more houses for sale.

Inventory shortages have been the big real estate story of the last couple of years. Real estate markets across the country are experiencing historically low levels of homes for sale. But these conditions are particularly noticeable within major cities across the Pacific Northwest. Seattle, for example, currently has one of the tightest markets of any major city in the country.

Given all of these conditions – steady demand and limited inventory – it’s no surprise to see positive forecasts for the Salem, Oregon real estate market in 2024. It stands to reason that home prices will probably continue to rise over the coming months, based on current conditions.

Disclaimer: This article includes predictions and forecasts relating to the Salem, Oregon real estate market in 2024 and beyond. These forward-looking statements were provided by third parties outside of our company. We have gathered them here as an educational service to our readers.

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Have Questions About Salem Home Loans?

If you’re ready to buy a home in Salem and need a home loan to finance it, Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, Washington. We currently lend in all of Washington, Oregon, Idaho and Colorado and offer a variety of mortgage programs to suit your financial needs. We have been helping borrowers since 1992, and we’d love to help you too. Please contact us if you have mortgage-related questions.

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