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Forecasts for the Portland, Oregon metro area housing market suggest that home prices could dip slightly over the next year or so due to weaker demand.
When considered over the long term, however, Portland’s real estate market still offers good investment opportunities for home buyers. Supply levels have increased as well, giving buyers more options to consider.
Here are the latest trends for the Portland-Vancouver real estate market with a forecast stretching into 2025.
With the winter holiday season upon us, a lot of home buyers in the Portland-Vancouver metro area are now shifting their focus to 2025.
And many are wondering the same thing: What will the Portland real estate market be like in 2025? What’s the general Portland real estate forecast and outlook?
No one can predict future housing market conditions with complete accuracy. But we can analyze current Oregon housing market trends, including supply and demand, to make an educated guess.
With that in mind, here are five predictions for the Portland real estate scene in 2025.
The Portland housing market has slowed down over the past couple of years. This could benefit home buyers in 2025 by increasing their negotiating leverage.
According to an October 2024 report from Realtor.com, Portland-area homes spent a median of 62 days on the market that month before going under contract. That was 14 days longer than a year earlier.
This shows that it’s taking longer to sell a home in Portland, Oregon these days, which bodes well for buyers. When properties sit on the market for longer periods, sellers are generally more willing to negotiate over the price and other terms.
The Realtor.com report mentioned above also revealed that the Portland real estate market has gained inventory over the past year.
Specifically, the total number of active property listings within the Portland-Vancouver-Hillsboro metro area rose by 31% from September 2023 to September 2024.
This growth trend has been going on for a couple of years now, and it could continue into 2025. If so, Portland home buyers should have an easier time finding a home within budget.
Home prices in the Portland area have essentially flatlined over the past year or so.
According to Zillow, the median home value for the Portland-Vancouver-Hillsboro metro area rose by just 0.7% during the 12-month period ending October 2024. Other sources reported a slight decline in prices during that same timeframe.
Zillow’s long-range forecast for the Portland real estate market predicts that the median home value will decline by 1.6% from fall 2024 to fall 2025.
Housing affordability in Portland, Oregon has a lot to do with these recent price trends and predictions. The median price for this housing market rose by around $140,000 over the past four years and currently sits well above the national median.
As a result of this trend, there are now fewer people in the Portland area who can afford to buy a home—even at the lower end of the market. This reduction in demand also reduces the upward pressure on Portland home prices in 2025.
As far as major cities go, Gresham tends to be the most affordable real estate market in the Portland metro area, while Beaverton is the priciest. You can expect more of the same in 2025 as well, along with little to no price growth.
According to MLS data and other sources, nearly 40% of Portland-area real estate listings had a price cut in October.
Price reductions in Portland housing occur when sellers come onto the market at once price, but later reduce it due to sluggish market conditions and/or a lack of offers.
Over the past year, the percentage of price cuts across the Portland housing market has far exceeded the national average.
From 2010 to 2020, the Portland metro area population grew by 12%. But growth has slowed since then and even declined in some cities.
According to a 2024 report from Oregon Public Broadcasting:
“Recent federal data shows thousands [of people] left Portland over a 1-year period ending in July 2023, while the Vancouver, WA housing market saw population growth during the same time.”
As you may already know, the state of Washington does not charge a personal income tax, while Oregon does. This could partly account for the population shift mentioned above.
Over the past year, the Portland-Vancouver metropolitan population has remained mostly flat. We’re not seeing the steady influx of new residents that we saw in the past. So population trends probably won’t have much impact on the real estate market in 2025.
First-time homebuyers in Portland, Oregon, face unique challenges and some distinct advantages heading into 2025, largely shaped by trends in affordability, inventory, and financing conditions. Here’s a breakdown of some of the main issues and potential benefits these buyers should consider:
Experts predict that rates will remain elevated, though we could see a very gradual decrease in mortgage rates in 2025. This is due to the inflation easing and a slight uptick in unemployment rates, which are expected to prompt the Federal Reserve to lower the Federal Funds Rate.
By mid-2025, mortgage interest rates are expected to dip to around 5.5%, and by the end of the year, they could be closer to 5.0%.
Portland offers promising real estate investment opportunities in 2025. For starters, the city will be adding more than 1,700 multifamily affordable housing units over the next five years, investing in this sector can be lucrative. These projects are designed to reduce carbon emissions and improve tenant health and resilience.
Further, Portland’s vibrant culture and growing population make it an attractive market for rental properties. Investing in rental units can provide a steady income stream for buyers.
Overall, the Portland housing market for 2025 can be summed up in just four words. More of the same.
The most important real estate trends that we’ve seen over the past six months will likely persist into 2025 as well.
To summarize the Portland, Oregon housing outlook for 2025, here’s something else to consider when planning a purchase:
Portland-area home buyers who make a purchase in 2025 have an opportunity to come in at the “bottom” of the post-pandemic real estate cycle, before prices start rising again.
If you’re looking to buy a home in Portland, OR and are in need of financing, we can help. At Sammamish Mortgage, we’ve been helping borrowers in the Pacific Northwest since 1992, and we’d love to help you too. Visit our website to get an instant rate quote, or speak with one of our experts to have your questions answered and get started on the road to financing your new home!
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.