Salem First-Time Buyers: New Builds vs Established Homes Compared

First-home buyers in Salem closed 142 off-the-plan contracts in the first half of 2026, up from 97 during the same period last year, according to Salem County deed records.

The shift comes as the Salem First Homebuyer Grant program expands its July 1 deadline to cover deposits on both new and existing properties, while construction delays at several riverfront sites push some completion dates into 2027.

Off-the-plan choices along the river

Developers are marketing units at the Salem Riverfront project on Front Street and the smaller Grant Street Lofts near the Amtrak station. Buyers lock in prices now but must wait 12 to 18 months for keys and accept the risk that interest rates move before settlement. The grant covers up to $15,000 toward the 5 percent deposit if the buyer uses an approved lender and attends the free workshop at the Salem Homeownership Center on Liberty Street NE.

Established homes in the West Salem neighborhood and along State Street offer immediate occupancy and visible condition reports. These properties rarely qualify for the same deposit assistance because the grant prioritizes new construction energy-efficiency targets set by the city council in 2025.

Price gaps and next steps

Median off-the-plan prices reached $328,000 in May 2026 while established three-bedroom houses in the 97304 zip code averaged $397,500, county assessor data show. Buyers who select an established home must front the full deposit themselves yet avoid the risk of builder default or design changes.

Prospective buyers should schedule a July appointment at the Salem Homeownership Center, pull their credit scores this week and compare the grant paperwork for both purchase types before the August 15 application window closes.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.