Tom Henderson//December 5, 2012//
The optimism of homebuilders and real estate professionals in Portland is shared by their colleagues in Salem – at least at the southern edge of town.
Unlike other areas of the city, South Salem has attracted a lot of activity, said John Kirk, principal broker with .
South Salem was left behind when West Salem experienced a building boom 10 years ago, he said. When the recession hit, West Salem had a lot of homes built at peak prices, but no one to buy them. Much of Salem’s buildable land is now toward the south, Kirk said.
“It’s sort of the perfect storm,” he said.
Troy Blum, principal broker with , sees similar trends.
“South Salem has a whole has done pretty good over the last couple of years,” he said. “Two or three years ago, you could have named your price for a lot out there.”
That’s not the case anymore, he added. The market is much friendlier for sellers.
“That’s a sign that something has picked up,” Blum said.
Home prices in South Salem range from $225,000 to $400,000 – selling at about $112 per square foot, Kirk said.
“There’s more confidence in terms of homebuilding,” Blum said. “There are a lot of entry-level homes. Upscale has slowed down some. It’s picking back up, but not to the levels of 2005, 2006 when we saw more upscale homes on the market. We haven’t seen that come back yet. It’s slow moving.”
South Salem, however, is faring better than most mid-valley neighborhoods, he added.
“South Salem has the most activity,” he said. “Keizer is not seeing that much going on.”