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Home prices in the Mid-Willamette Valley were among the fastest rising in the nation during the second quarter, according to the National Association of Realtors.
The real estate group determined that the Salem Metropolitan Statistical Area, which includes all of Marion and Polk counties, had the nation’s third-largest increase in single-family
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home prices.
The median price was $227,900 — a 16.7 percent increase compared with the second quarter 2006.
“It wouldn’t surprise me that we would see a slowing rate of growth (in prices),” said Walter Molony, a spokesman for the National Association of Realtors. “You can’t keep those strong, double-digits indefinitely.”
But home prices tell only part of the story: Real estate sales in the Salem area have slowed from the frenetic pace of a few years ago and more houses are waiting to find buyers.
Salem real estate agents say the market is cooling after the boom years of 2005 and 2006.
“We’re not in that kind of market now, but our market is good. There’s lots of inventory,” said Laura Swearinger, managing principal broker with Coldwell Banker Mountain West Real Estate.
Byron Hendricks, the president of Prudential Real Estate Professionals in Salem, said homeowners might have to be content with property values increasing by single rather than double digits.
Salem’s real estate market has benefited from job growth, new residents moving to the area and the fact that it hasn’t seen “the insane run-up” in prices experienced in some parts of the country, he said.
By MICHAEL ROSE, Statesman Journal
