OR: Salem-area market remains red hot
The average selling price for homes in South Salem and West Salem rose by 14 percent and 16.5 percent, respectively, from 2005 to the present. Buyers are paying an average of $248,000 for South Salem houses, and more than $271,000 for houses in West Salem. Four years ago, the going rate for both areas was in the $170,000 range. Home builders cite the doubling of land costs during the past 18 months as one of the primary reasons for the rapid run-up in home prices.
Developers propose building at least two dozen large housing projects in the Salem area, which could add upwards of 4,000 new homes to the area. When this occurs, some area experts believe the added housing supply may cool the current price increases.