Prepare for the long haul if you own land
Acreage properties are all unique as there are no two that are even close to being alike. I recently closed a deal on a small acreage property and decided to share some of the statistics that I ran for my buyers about what is occurring in this sector of our local Salem real estate market. Acreage properties have a minimum of one acre.
Average Sales price:
The average sales price so far this year is $481,758, down 2.3 % from last year’s $493,226.
Inventory:
Salem has an absorption rate of 5.6. This places the current Salem inventory at 33.0 months.
Acreage Properties Closed:
In the first quarter this year, 17 homes closed on the market. That is down 43 % from the same time frame last year when 30 properties closed in the first quarter. Sales have slowed significantly in Salem, and with high inventories it will be important to price well.
Current Active Listings:
There are currently 187 acreage properties listed for Salem Oregon. They range in price from $160,000-2.5M with the average being $701,781. As you can see the average active listing price is significantly above the average sold price of $481,758. The acreage market has been hit hard with the lack of liquidity in the jumbo loan mortgage market. This is most evident in that the most expensive property that sold this year has been $850,000 compared with the $1,153,759 of last year.
For sellers of acreage properties, be prepared for a long haul. Sellers appear to be holding tight on prices and buyer’s are just not jumping at these prices.
If you need more specific market information, please feel free to call or email me with your specific area, and I will provide you with a more detailed report.
(c) Copyright, 2008. Melina Tomson, All Rights Reserved. DO NOT COPY this without express written permission from the author.
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