Portland, Oregon Closing Costs for Buyers: Updated for 2024

Published:
August 16, 2017
Last updated:
January 12, 2024
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When you buy a home in Portland, there are closing costs that you will need to cover. These costs are typically in line with the purchase price of the home, so the more expensive a home is, the more you can expect to pay in closing costs. Here’s a look at what current closing costs might be for a median-priced home in the area, updated for 2024.

Home prices across the Portland, Oregon metro area have remained stagnant over the past year. As a result, the average closing costs for Portland home buyers have likely remained somewhat the same as what they were a year earlier. But prices are expected to increase over the next year, which will have an impact on closing costs.

Average Buyer Closing Costs in Portland

On average, home buyers in Portland tend to pay somewhere between 3% and 5% of the home’s purchase price in closing costs. But that range is not necessarily set in stone. Typically, the buyer’s costs amount to around 4% of the home’s purchase price. So that’s a good number to use for our purposes of calculating an average.

According to real estate research firm Zillow, the median home price in Portland, Oregon now sits at $519,746 in January 2024. That was a decrease of 1.9% from the same month a year earlier. So closing costs are somewhere around the same level as what they were at last year as a result.

If we use that number ($519,746) as a starting point, we can get a sense for what the average closing costs would be for a home buyer in Portland:

  • At 3.5% of the purchase price, closing costs would come to around $18,191.
  • At 4.0%, a home buyer’s total costs would be around $20,789.
  • At 4.5%, it would come to $23,388.

This is by no means a definitive guide to closing costs in Portland. There are a lot of variables, as mentioned below. But it does give us some insight into the average costs a buyer might pay, based on the median home price as of January 2024.

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Variables That Can Affect Your Bottom Line

Closing costs can vary widely based on a variety of factors. The price of the house being purchased plays a big role. But there are other influencing factors as well.

For example, some borrowers choose to pay “discount points” in exchange for a lower mortgage rate, while others forgo this option. This is just one variable that can affect your overall borrowing costs.

But we’re talking about averages here, so we shouldn’t get lost in the weeds. The numbers presented above are a pretty good estimate of average closing costs for Portland, Oregon home buyers.

Home Prices Expected to Rise in 2024

The bigger story here is that house values in Portland are expected to continue rising throughout 2024.

There is currently an imbalance between supply and demand within the Portland real estate market. According to local MLS data and real estate reports, the city has around a two-month supply of homes for sale. A “balanced” real estate market has about five to six months worth of supply, according to economists.

So there just aren’t enough properties listed for sale to satisfy the current level of demand. This is putting steady upward pressure on home prices, which is why the average closing costs for buyers in Portland is higher today than in previous years.

Related: Portland housing outlook

The key takeaway here is that average closing costs for Portland, Oregon home buyers will probably be higher next year. This is the result of anticipated steady home-price appreciation, which partly stems from the supply and demand imbalance we are seeing across the metro area.

Home buyers who are “on the fence” about buying now versus later should pay close attention to these trends. Those who postpone their purchases until later in the year or next year will likely encounter higher home prices and closing costs.

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Have Questions About Closing Costs or Buying a Home in Portland?

Are you ready to buy a home in Portland? Do you need a mortgage to finance it, or just have some questions about Portland home loans? If so, Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, Washington and have been providing a variety of mortgage programs to borrowers across Washington, Oregon, Idaho and Colorado since 1992. Please contact us if you have mortgage-related questions.

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