Salem, OR Housing Market
AI-powered market intelligence for the Salem, OR metro area.
PropertyIQ Scores
Salem, OR Market Analysis
Market Overview
Salem’s PropertyIQ Score of 24 out of 100 places the market in a weak position. The median home value of $455,386 is $46,770 below the Oregon state average of $502,156, while the median household income of $76,010 is $4,416 below the state average of $80,426. At the same time, the rent index of $1,623 is $173 above the state benchmark of $1,450, and the unemployment rate of 4.6% is lower than the 5.2% state average. These mixed conditions suggest a market where home prices are more affordable than the state norm, but local incomes are not keeping pace and rental costs remain relatively high.
The PropertyIQ Score is heavily influenced by price momentum and seller behavior. The 12-month home value momentum of 2.96% shows modest annual growth, but the 3-month momentum of -0.26% points to recent softening. Median days on market of 51 days and a 27.7% share of listings with a price cut indicate that sellers are competing for buyers. With 1,440 homes for sale and a year-over-year home value change of -$4, Salem’s market is best characterized as cool and buyer-friendly rather than appreciating or strongly competitive.
Key Trends
One trend is cooling price momentum. Although the 12-month home value momentum is positive at 2.96%, the 3-month momentum is -0.26% and the year-over-year home value change is -$4. This suggests that most of the annual gain occurred earlier and conditions have flattened or turned slightly negative recently.
Another trend is elevated inventory and longer selling times. Salem has 1,440 homes for sale, a median of 51 days on market, and 27.7% of listings with a price cut. These figures point to a market where supply is not being absorbed quickly and sellers are using price reductions to attract buyers. State benchmarks for days on market and price-cut share are not provided, but the absolute levels still indicate a slower environment.
A third trend is relative rental strength. Salem’s rent index of $1,623 is above the state average of $1,450, even though the median home value is below the state average. This indicates that the rental market is relatively stronger than the for-sale market based on available benchmarks.
A fourth trend is affordability tension. The median household income of $76,010 is below the state average of $80,426, while the median home value, though lower than the state average, remains near $455,386. The lower unemployment rate of 4.6% versus 5.2% is a positive, but population growth data is not available to show whether local demand is expanding.
Who Is This Market For
This market may suit first-time buyers who can find entry prices below the state average and negotiate with sellers, given the 27.7% price-cut share and 51-day median days on market. The median home value of $455,386 is lower than Oregon’s $502,156 average, but the median household income of $76,010 remains below the state average, so affordability still depends on household budgets and financing. The relatively high rent index of $1,623 compared with the state average of $1,450 may make ownership more appealing for buyers who can qualify.
Investors may see opportunity in Salem’s rental market. The rent index of $1,623 exceeds the state benchmark, while median home values are below the state average, which could support rental-oriented returns. However, the weak PropertyIQ Score of 24/100, the -0.26% 3-month home value momentum, and the year-over-year home value change of -$4 mean that investors should not expect rapid appreciation. Move-up buyers and sellers may face challenges, as longer days on market and a high share of price cuts suggest they may need to sell below initial expectations. Population growth data is not available, so buyer profiles tied to in-migration cannot be assessed.
Outlook
The near-term outlook for Salem is cautious. The most recent momentum data—a 3-month home value change of -0.26% and a year-over-year change of -$4—does not point to near-term price appreciation. With 1,440 homes for sale, a median of 51 days on market, and 27.7% of listings showing price cuts, sellers are likely to continue facing competition. The 12-month home value momentum of 2.96% provides some evidence of annual resilience, but the recent cooling suggests that gains have stalled. The rental market may remain a relative bright spot because the rent index of $1,623 is above the state average of $1,450 and unemployment is lower than the state average at 4.6% versus 5.2%. Without population growth data, the outlook cannot account for potential demand from new residents. Overall, the data supports a flat-to-soft market in the near term rather than a rapid rebound.
AI-generated analysis based on current market data. Last updated August 19, 2026.
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Salem, OR market data
Salem, OR Housing Market Overview
Salem, OR's median home value is $455K, up 3.0% over the past year. Homes here sell in a median 51 days. Its PropertyIQ Score of 24 sits below the state average of 50, marking a market positioned to lag its state over the next three years.
PropertyIQ tracks the Salem, OR housing market through two complementary lenses: price momentum from Zillow home-value trends over 3 and 12 months, and demand pressure from how quickly homes sell and how often sellers cut prices, drawn from Realtor.com. The PropertyIQ Score distills these into one number that predicts how this OR market is set to perform against its state benchmark.
Pacific Coast housing markets feature the nation's highest price points alongside strong wage growth from technology, entertainment, and trade sectors. Supply constraints from geographic barriers and regulatory environments create persistent affordability challenges but also strong long-term appreciation potential. Within the Pacific, Salem, OR's PropertyIQ Score of 24 runs below the Pacific norm.
Each month, PropertyIQ updates its score for Salem, OR using four inputs: Zillow ZHVI twelve-month and three-month momentum, Realtor.com median days on market, and the Realtor.com share of listings with price cuts. These four signals are combined into a single 1 to 99 score computed across all metro markets and calibrated so 50 represents the state average, making it a direct read of how this market is positioned to perform relative to its state. Momentum here has been positive, with home values up 3.0% over the past year.
Use PropertyIQ's interactive analytics to compare Salem, OR against any other US metro on its PropertyIQ Score and underlying metrics. Generate a free AI market report, explore historical trends on the graphs page, or see how this market ranks on the scores dashboard.
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Market data through July 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Salem, OR a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Salem, OR currently scores 24, a weak-momentum reading that leaves it positioned to lag its state over the next three years. For buyers, cooling demand usually brings more inventory, longer sale times, and real leverage to negotiate on price. Backing that up, the median home value here is $455K, up 3.0% over the past year. So whether Salem, OR is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Salem, OR?
Salem, OR's PropertyIQ Score is 24, indicating weak momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 24 places Salem, OR below its state benchmark.
Are home prices in Salem, OR rising or falling?
Home prices in Salem, OR are rising. Over the past year, the median home value increased 3.0%, reaching $455K. Over the latest three months, values slipped 0.3%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Salem, OR's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Salem, OR?
In Salem, OR, homes sell in a median of 51 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 28% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Salem, OR market data is refreshed on a monthly cycle, with the latest figures current through July 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.