The Salem, Oregon real estate market is hot in 2017. Home prices in and around the city have risen by more than 10% over the last year alone, as of May 2017. And a new report showed that homeowners in Salem are earning some of the largest returns when selling their homes.
Salem, Oregon Housing Market Among the ‘Most Profitable’
With such significant price gains, it’s no surprise to find Salem, Oregon on a list of the most profitable housing markets in the country. In a 2017 ranking by ATTOM Data Solutions (parent company of RealtyTrac), the Salem metro area was ranked as the tenth most profitable housing market, when measured by owner return on investment.
Homeowners in the city who sold their homes in the first quarter of 2017 had an average return on investment of 46% since first purchasing their properties. The average home-price increase among Salem homeowners was $70,800, one of the highest annual increases in the country.
But despite the potential for a big profit, a lot of homeowners are choosing to stay in their homes. This contributes to the inventory shortage we’re seeing in Salem, and other major cities across Oregon.
According to Daren Blomquist, senior vice president with ATTOM Data Solutions:
“The first quarter of 2017 was the most profitable time to be a home seller in nearly a decade, and yet homeowners are continuing to stay put in their homes longer before selling.”
The Portland metro area was ranked as the fourth most profitable real estate market during the first quarter of 2017. Portland homeowners who sold their homes during that time frame earned an average ROI of 52%, with an average price gain of $110,799.
California’s Silicon Valley was ranked as the most profitable, with a 71% ROI.
Forecast for 2017 – 2018: Smaller Home-Price Gains?
The real estate information company Zillow recently published a housing market forecast for Salem, Oregon that suggests home prices might rise more slowly in the months ahead.
According to the company’s proprietary measurement of house values, the median home price in Salem rose by a whopping 13.5% over the last 12 months (as of May 2017). Looking forward, however, they’ve forecast a gain of 5.0% over the next 12 months. So clearly they expect price growth to slow down through 2017 and into 2018.
Still, that’s a much stronger forecast than their national outlook. The company expects home prices nationwide to rise by 2.6%, between now and May 2018.
To put these numbers into perspective, average home-price growth going back thirty years or so is between 3% and 4% annually. So the forecast for the Salem, Oregon housing market is still higher than historical averages.
The median home price in Salem was around $230,000 in spring 2017, according to the latest reports.
Disclaimer: This article contains predictions and forecasts for the Salem real estate market in 2017 and 2018. Data and projections were provided by third parties not associated with our company. We have compiled them here as an educational service for our readers.