5 Trends Shaping the Portland, Oregon Housing Market in 2022

Published:
August 30, 2022
Last updated:
August 30, 2022
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In 2022, the Portland, Oregon real estate market is transitioning out of “frenzy” mode and into something resembling normalcy. More homes are coming onto the market, sellers are starting to reduce their list prices, and houses are taking a little longer to sell compared to last year.

These and other Portland housing market trends bode well for home buyers. Over the coming months, changes on both the supply and demand side of the equation could give buyers a leg up when it comes to negotiating.

Below, we’ve provided a roundup of the latest real estate market trends for the Portland, Oregon metro area, as of summer 2022.

Portland, Oregon Housing Market Trends for 2022

The Portland housing scene has undergone several changes during the latter part of 2022. Some of these trends are still unfolding, so we don’t yet know how they’ll impact the buying and selling of homes. Overall, however, the real estate market in and around Portland, Oregon appears to be moving in a more buyer-friendly direction (for a change).

1. More homes have come onto the market in 2022.

In their “July Housing Report” published earlier this month, researchers from Realtor.com revealed the latest trends for the Portland metro area real estate market. Among other things, this report showed that more homes have been coming onto the market lately.

During July 2022, the total number of property listings for the Portland-Vancouver-Hillsboro, OR-WA metropolitan area rose by 51% compared to a year earlier. This could help alleviate the ongoing inventory shortage, while giving Portland-area home buyers more options.

It’s too soon to say if this is the start of a sustained trend, or a temporary one. A lot depends on the perceptions among homeowners / sellers:

  • If sellers believe that the market has peaked in terms of home prices, they might be more reluctant to sell. That could reduce inventory.
  • On the other hand, if sellers believe it’s best to list their homes now, before mortgage rates rise higher, we could see additional inventory growth.

The one thing we know now is that the Portland real estate market has shifted in a way that favors buyers a bit more than in the past.

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2. Home prices are still rising, but slower than last year.

Home prices in the Portland, Oregon metro area continue to climb, at least when measured year-over-year. But the size of those annual gains has shrunk down to more “normal” levels.

A year ago, house values across the Portland housing market were rising by double digits annually. But as of summer 2022, price appreciation has settled back into the single-digit range.

According to Zillow, the median home value within the city of Portland rose 8.5% in August 2022, compared to a year earlier. The median price point will likely exceed the $600,000 threshold by the fall or winter of 2022 (and for the first time ever).

Despite these annual gains, prices actually dipped slightly during June and July of this year. That’s based on data provided by the Regional Multiple Listing Service, which covers most of the Pacific Northwest.

Home values often rise and fall seasonally. So a month-to-month dip doesn’t always indicate a broader housing market trend. Still, a price drop during the summer months (which are usually a hot time for the real estate market) could point to changing market conditions.

3. More and more sellers are cutting their list prices.

Last month, roughly 28% of homes listed for sale in the Portland, Oregon metro area had a price reduction. That means more than one-quarter of sellers reduced their asking prices, after originally coming onto the market at a higher price.

The percentage of Portland-area listings with a price reduction increased by nearly 16% over the past 12 months. This shows that sellers are starting to become more aggressive with their pricing in order to attract offers. And it’s another positive housing market trend, from a buyer’s perspective.

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4. Buyers could enjoy more negotiating leverage in 2023.

Given these latest trends within the Portland real estate market, it’s not surprising to see home buyers gaining some negotiating leverage. And that’s just what local agents have been reporting lately.

According to an August 2022 article on OregonLive.com:

“Jennie Foey and her husband made a contingency offer on a condo in the Pearl District this month that they hoped to buy as a second home, meaning their purchase depended on them selling their Bay Area home. The seller accepted. Such a transaction would have been unheard of in the past couple of years, according to Foey’s agent Jennifer Watson.”

All of this is welcomed news for home buyers in the Portland area, especially after the highly competitive housing market conditions of the past two years. We can’t say for sure what the local real estate scene will look like in 2023. But for now, it seems to be more favorable for buyers.

So there you have it, a roundup of Portland, Oregon real estate market trends as of summer 2022. We’ll keep tabs on these and other developments and provide additional reports as needed, to keep you informed!

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