Salem Oregon Real Estate Market Update: What's Happening in February 2026

If you're planning to buy or sell a home in Salem this year, this is one of the most useful posts you'll read all month. Every last Tuesday, we pull fresh data directly from the Willamette Valley MLS and translate the numbers into plain-language takeaways you can actually use. Here's what the Salem Oregon real estate market is telling us heading into February 2026.

Where Salem's Market Stands Right Now

January is historically the quietest month of the real estate calendar, and 2026 was no exception. Activity across the Willamette Valley slowed seasonally — but a few data points stand out as genuinely meaningful signals, not just seasonal noise.

Across all property types and areas, the Valley recorded 890 closed sales in January 2026, alongside 428 new listings and 887 pending sales. That pending number matters. Nearly as many homes went under contract in January as closed. That's a market getting ready to move, not one stalling.

The average sales price for January came in at $467,374, and sellers received 98.65% of their list price — up from 97.98% in January 2025. Sellers are holding firm. Buyers aren't getting the deep discounts some had hoped for.

Inventory Is Rising, But Slowly

Active listings across the Valley grew 2.86% year-over-year, reaching 2,663 homes. Months of inventory edged up to 3.99 from 3.74 last January. That still keeps us in seller's market territory — balanced markets typically carry five to six months of supply — but buyers have meaningfully more options than they did a year ago.

For buyers who've been sitting on the sidelines waiting for inventory to open up, this is a real, if gradual, shift worth paying attention to.

Salem City Overview

Looking at Salem specifically, the past twelve months produced 2,082 residential sales at an average price of $489,395. Homes averaged 85 days on market and there are currently 437 active listings across the city. That gives buyers a solid range of options across multiple price points.

The full-year 2025 average for Salem settled at $511,807 — steady growth from $501,214 in 2024. The January 2026 YTD average of $496,233 reflects typical seasonal softness in January pricing, not a downward trend.

How Salem's Neighborhoods Compare

One of the most useful things our MLS data reveals is how differently Salem's neighborhoods behave within the same market. Right now, the gap between the fastest and slowest-moving areas is significant — and it matters for both buyers and sellers.

South Salem: Premium Prices, Steady Pace

South Salem continues to command the highest average sales price in the city at $738,205 over the past twelve months, with homes averaging 2,202 square feet at $332 per square foot. Days on market averaged 79 — one of the faster paces in the city — and there are currently just 7 active listings in the area.

That combination of high price and limited inventory means South Salem remains a competitive segment. If you're a seller here, this market continues to reward well-priced homes. If you're a buyer, expect less negotiating room and move decisively when the right home appears.

For a detailed look at how South Salem stacks up against its neighbor to the west, see our breakdown of West Salem vs. South Salem: Which Neighborhood Is Right for You in 2026.

West Salem: Family-Friendly and Consistent

West Salem posted an average sales price of $511,412 over the past year, with 83 average days on market and just 4 current active listings. Price per square foot came in at $241 — one of the more favorable value propositions in the city given the neighborhood's commuter access and family-friendly character.

West Salem continues to attract buyers who want Salem's amenities at a step back from South Salem pricing. It's a consistent performer with steady absorption.

Suburban Southeast: The Fastest-Moving Segment

Perhaps the most interesting data point in the January report is Suburban Southeast Salem, which averaged just 63 days on market — the fastest of any area in the WVMLS Salem breakdown. With an average sales price of $450,726 and 16 active listings, this segment is moving quickly despite representing some of the market's more accessible price points.

For buyers in the $400k–$500k range, Suburban Southeast deserves serious attention. Homes here are not sitting. If you find something that works, acting promptly matters.

Southeast Salem: More Time, More Opportunity

By contrast, Southeast Salem averaged 136 days on market with a higher average price of $599,548. That's a meaningful difference, and it reflects a mix of factors: larger, more complex properties and buyers who take longer to find the right home at that price point.

For buyers in the $550k–$650k range, Southeast Salem's longer market times create genuine negotiating opportunities. For sellers, pricing strategy matters more here than in any other area of the city.

What These Numbers Mean for Buyers

If you're actively searching for a home in Salem right now, January's data tells a useful story. Inventory is growing slowly but steadily. Sellers are still getting close to their asking prices — 98.65% list-to-sale — which means low-ball offers aren't landing. But homes are spending more time on the market than they did in 2023 or early 2024, and that creates room for more strategic conversations.

The segments worth watching most closely: South Salem and Suburban Southeast are moving fast — act quickly when the right home appears. Southeast Salem offers more negotiating room for patient, well-prepared buyers.

Buyers relocating from the Portland area, California, or Seattle will find Salem's price points and inventory dynamics comparatively favorable. The gap between what your equity buys here versus those markets remains substantial.

What These Numbers Mean for Sellers

If you're thinking about listing in 2026, the early data is encouraging. Pending sales volume in January was nearly as high as closed sales — meaning there's active buyer interest even during the slow season. The list-to-sale ratio improving year-over-year is a clear signal the market is not softening on price.

That said, overpricing remains the most common and costly mistake sellers make in any market. Homes that sit accumulate days on market, which buyers and their agents notice. The 136-day average in Southeast Salem is partly a product of properties that started too high and had to adjust.

The sellers who do best in this market are the ones who price accurately from day one. A well-presented, correctly priced home in South Salem or West Salem right now should generate solid interest and perform near list price. We'll be exploring this in more depth in Thursday's post on why overpricing hurts more at higher price points.

The Bigger Picture: Salem in 2026

Zooming out from the January snapshot, the trajectory for Salem's market in 2026 points toward modest stability. Price appreciation is expected in the 4–6% range for the mid-Willamette Valley, supported by steady in-migration, limited new construction, and Salem's ongoing appeal as an affordable alternative to Portland.

Mortgage rates remain in the mid-to-upper 6% range, which continues to shape buyer behavior. Some buyers are waiting. Others are running the numbers carefully and moving when the right home appears. The ones who move deliberately — with clear criteria and accurate data — tend to make better decisions than those reacting to market anxiety in either direction.

Salem has quietly absorbed a lot of buyers from higher-cost markets over the past several years. That pattern hasn't reversed. If anything, the value proposition Salem offers relative to Portland, Seattle, and the Bay Area continues to look attractive to equity-rich relocators.

Practical Takeaways for February 2026

For buyers: Inventory is slowly improving. South Salem and Suburban Southeast are competitive — move quickly when you find the right home. Southeast Salem offers more negotiating room for patient, well-prepared buyers.

For sellers: Pending activity in January was strong. The list-to-sale ratio is trending up. Price accurately from day one and let market momentum work in your favor. Overpricing is the one variable fully within your control — and the most consequential one.

For everyone: January data is a snapshot, not a verdict. February and March will tell us more about where the spring market is heading. We'll update these numbers every month in this series.

Want to Talk Through What This Means for Your Situation?

Market data tells you what's happening. A conversation tells you what it means for your specific goals, timeline, and neighborhood. If you'd like a straightforward, no-pressure discussion about where you stand in today's Salem market, we're glad to help.

Reach out at wisser.homes or give us a call. We'll give you the same honest read we give our clients.