Absorption Rates and Inventories on Home Prices in Salem Oregon
Now that the first six months of the year have passed, I’d like to take a look at some of the market sectors. As I have been watching less expensive homes move well, and often taking back-up offers, I thought I would take a look at inventories based on price.
In Residential Homes
- For Homes priced in the 0-$100,000 range: Absorption Rate is 3.7, Inventory 2.1 months
- In the $100,001-$200,000 range: Absorption Rate is 62.7, Inventory is 6.4 months
- In the $201,001-$300,000 range: Absorption Rate is 57.0, Inventory is 10.3 months
- In the $301,001-$400,000 range: Absorption Rate is 18.7, Inventory is 14.5 months
- In the $401,001-$500,000 range: Absorption Rate is 5.3, Inventory is 28.3 months
- In the $501,001-$750,000 range: Absorption Rate is 1, Inventory is 5.6 years (67 months)
- In the $750,001+: Absorption Rate is .3, Inventory is 6.4 years (76 months)
Not surprisingly, the less expensive the property is, the more normal the market. Homes over $250,000 are still outside the reach of many home buyers, and as such inventories are increasing.
The luxury home market…what can I say? The numbers speak for themselves.
Now let’s look at condos.
- For condos priced in the 0-$100,000 range: Absorption Rate is .3, Inventory 3.0 months
- In the $100,001-$200,000 range: Absorption Rate is 6.7, Inventory is 8.8 months
- In the $201,001-$300,000 range: Absorption Rate is 57.0, Inventory is 10.3 months
- In the $301,001-$400,000 range: Absorption Rate is 1, Inventory is 15 months
- In the $401,001-$500,000 range: Absorption Rate is 0, Inventory is 9 months
- In the $501,001-$750,000 range: Absorption Rate is 0, Inventory is 8 months
- In the $750,001+: Absorption Rate is 0, Inventory is 0 months
As you would expect the luxury condos that are currently on the market aren’t selling. The meridian condos are not on the MLS currently, and will push inventories well into over a year if you include them.
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