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Salem

Salem

Located in Washington County

$180,886 Average Value
$98 Average Price per Sq Ft
5 Homes For Sale

Country living and a historic central square in Salem, Indiana

Salem is a town of about 6,000 residents surrounded by forest and farmland. “It’s very country. They have drive-your-tractor-to-school days,” says Jay McRae, a Realtor with RE/MAX First. “My wife’s family is from Salem, and my in-laws know everyone in Washington County. It blows my mind how many people they know.” A Romanesque limestone courthouse anchors the town’s central square, which is full of local restaurants and shops. More shopping, dining and entertainment options are about 40 miles away in Louisville.

Early 20th century cottages, ranch-style homes and new constructions

Salem offers a variety of housing options and a wide range of prices. Cottages built prior to the 1960s — some with distinct Arts and Crafts-era elements — on grassy lots up to half an acre in size range from $40,000 to $250,000. A wave of ranch-style homes, many with small, raised decks, was added between the 1960s and the 1980s, selling for between $140,000 and $350,000. Grandiose, brick New Traditional houses from the early 2000s sit on manicured lawns ranging up to an acre in size, with room for outdoor living spaces and playground equipment. While the city’s older homes line Salem’s central, gridded streets, these more recent builds and new constructions from the 2020s are found on the outskirts, fetching from $220,000 to $425,000.

Popular eateries surround a historic courthouse at “The Square”

“The Square” refers to the center of Salem’s historic downtown. An eclectic collection of Victorian buildings surrounds the Washington County Courthouse, which looks more like a castle or a place of worship with its five-story clock tower and narrow, arched windows. Shops and restaurants occupy the nearby storefronts. El Maguey Mexican Restaurant offers an extensive variety of street tacos and burritos, and its upstairs patio is shaded with larger versions of the colorful parasols that grace the brim of the restaurant’s oversized margaritas. Around the corner, H & R Bakery pairs hot or iced coffee with an array of fried pastries. “It’s been around for years, and they have really, really good donuts that are still pretty cheap,” McRae says. “They have this really big model train set-up for kids to look at.” Walmart Supercenter, Jay C Food Stores and Ruler Foods are some of the local grocery options.

Friday Night on the Square

On the second Friday of every September, downtown Salem businesses extend their hours and food trucks, along with other vendors, flood The Square. Parents will find various kid-friendly activities, as well as a wine and beer garden, at the event.

Salem Motor Speedway, Lake Salinda and community green spaces

A wooden playground resembling a castle sparks imaginations in DePauw Park, equipped with four basketball goals, picnic tables, a covered shelter and a grill. More athletic amenities — including five baseball diamonds, tennis courts and a skate park — can be found at Salem Community Park, which also has a slide and a merry-go-round for younger parkgoers. A little over 2 miles south of town, Lake Salinda offers tournament fishing and scenic hiking, with lakeside trails that light up with golden hues during the fall. “It’s a pretty good-sized lake. People hike around it all the time, and they’ll do senior pictures out there,” McRae says. The Salem Speedway has been hosting high-speed races for over 65 years and has welcomed renowned drivers like Jeff Gordon and Tony Stewart to its track.

Several interstates and state routes lead to downtown Louisville

Several regional thoroughfares branch outward from Salem. Main Street continues north and south outside of the city as Indiana state Route 135. In the south, it intersects with U.S. Route 150, which merges with Interstate 64. The interstate leads into Downtown Louisville, though commuters can also use Indiana state Route 60 and Interstate 65 to reach Louisville, which is about 40 miles from Salem. The Louisville Muhammad Ali International Airport is only a few miles farther. Indiana state Route 56 connects Salem to Scottsburg, roughly 20 miles away. The Southern Indiana Transit System maintains a deviated route throughout Salem, with stops mostly at apartment complexes and shopping centers.

Dual credit courses and a new nursing career pathway and Salem High

Children living in Salem may begin their education at Bradie Shrum Lower Elementary School, which receives a B-minus grade from Niche. They may then move forward to C-rated Salem Middle School before attending Salem High School, which scores a C-plus and has a roughly 97% graduation rate. The high school offers 26 dual credit classes, and as of the 2025-2026 academic year, students will be able to enroll in career pathways for health sciences or hospitality and human services. Those in the former can earn Certified Medical Assistant (CMA) and Certified Nursing Assistant (CNA) titles.

Julia Straka
Written By
Julia Straka

Interested in learning more about homes in this area? Reach out to Jay McRae, an experienced agent in this area.

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Schools

Source:
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Salem Housing Trends

Housing Trends

Median List Price
$169,900
Median Sale Price
$140,000
Median Single Family Sale Price
$140,000
Median Change From 1st List Price
18%
Last 12 months Home Sales
74
Median Home Sale Price YoY Change
-8%
Average Price Per Sq Ft
$98

Neighborhood Facts

Number of Homes in Neighborhood
2,029
Number of Homes for Sale
5
Median Year Built
1953
Months of Supply
0.80
Average Single Family Home Size Sq Ft
1,540
Below the national average
1,924
Average Townhouse Size Sq Ft
1,782
Median Lot Size Sq Ft
10,890

Open Houses

  • 105 Lincoln St, Salem, IN 47167

    $144,900

    • 4 Beds
    • 1 Bath
    • 1,508 Sq Ft
    • 105 Lincoln St

    FOUR BEDROOMS! Discover this exceptional residence situated in the heart of Salem, Indiana. Nestled on two expansive lots, this property boasts an abundance of shade trees in the front and side yards. The backyard features a spacious walk-out deck, perfectly positioned for taking in the picturesque views. A concrete slab adjoins the walkout basement, while the fenced-in backyard provides a secure

    Agent Photo
    Mike Ashby
    (812) 366-7643
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  • 7185 E Old 56, Salem, IN 47167

    $207,400

    • 3 Beds
    • 2 Baths
    • 1,700 Sq Ft
    • 7185 E Old 56

    Experience the ultimate in country living in Salem, Indiana. This exceptional property boasts a spacious home situated on 1.43 acres, adjacent to several hundred acres of state-owned land. The residence features a large gravel driveway, a 15x5 front deck, and a 16x15 back deck overlooking the picturesque wooded backyard. A notable highlight is the 22x14 manufactured extension, complete with

    Agent Photo
    Mike Ashby
    (812) 884-1523
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  • 2476 N Old 56, Salem, IN 47167

    $239,900

    • 4 Beds
    • 2 Baths
    • 1,180 Sq Ft
    • 2476 N Old 56
    • New 7 days ago

    Have you always envisioned owning a small farm? Consider this four-bedroom, two-bathroom residence situated on two acres of land. The home was renovated in 2023, featuring new windows, kitchen cabinets, and appliances. An unattached garage offers ample storage space. The property also boasts a 20x40 hoop barn with three stalls, lumber for additions or a hay loft, two smaller pens with shelters

    Agent Photo
    Mike Ashby
    (812) 954-6671
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Homes for Sale

Homes for Rent

Distribution of Home Values

Source: Public Records

Average Home Value





Source: Public Records

Property Mix - Square Feet

Salem Has More Owners

Demographics

Total Population
6,678
Median Age
41
Population under 18
24%
On par with the national average
23.8%
Population over 65
20.2%
On par with the national average
19.1%

Finances

Median Household Income
$48,117
Significantly below the national average
$71,702
Average Household Income
$60,995

Education and Workforce

High School Graduates
83.5%
College Graduates
15.8%
Below the national average
34.1%
Advanced Degrees
5.4%
Below the national average
13.3%
% Population in Labor Force
62.8%

Weather

Annual Precipitation
49''
Average Winter Low Temperature
22°F
Average Summer High Temperature
86°F
Annual Snowfall
6''

Area Factors

Somewhat Bikeable

Bike Score®®

29 / 100

Somewhat Walkable

Walk Score®®

51 / 100
Source: Walk Score
Source: Walk Score

Walk Score® measures the walkability of any address. Transit Score® measures access to public transit. Bike Score® measures the bikeability of any address. CAP Index provides objective, accurate, and consistent data to help measure, compare, and mitigate crime risks.

Disclaimer: Certain information contained herein is derived from information provided by parties other than Homes.com. Our sources include: Accuweather, Public Records and Neustar. All information provided is deemed reliable, but is not guaranteed to be accurate and should be independently verified.
Salem