How Portland’s Housing Market is Changing in 2023: Trend Watch

May 26, 2018
Last updated:
December 6, 2022
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Buyers who plan to purchase a home in Portland in 2023 should start planning early and have plenty of patience. While home prices are somewhat stagnant right now, it can take some time to find a property that meets all of your needs.

For a long time, we’ve been hearing how the major housing markets in the Pacific Northwest have been strong with fierce competition and limited supply.

That’s still true. The real estate market in Portland, Oregon is currently very healthy right now, and even though home prices have dipped over the past few months, they’ve increased year-over-year.

Portland Housing Market Relatively Strong 

Portland’s housing market has experienced strong annual price growth in recent years, especially since 2020. This above-average growth was largely the result of a skewed supply and demand situation. Plenty of people were looking for homes, but supply was very limited. Thus, home prices rose rapidly and outpaced the national average in a good way.

Related: Buying a Home in Portland Now, Versus Waiting Until Later

There is still an imbalance between supply and demand, and the Portland housing market appears to still be very active. According to the real estate information company Zillow, the median home value for Portland, Oregon increased by 3.2% over the last year (reported in December 2022).

Right now, the average home price in Portland is $567,842.

So, clearly, we are witnessing continued price increases in Portland’s housing market.

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The Affordability Factor

Over the last couple of years, a rising chorus of local officials and housing advocates have pointed to an affordable housing crisis in Portland, Oregon. Portland’s Metro Council even considered a bond measure for the 2018 general election to dedicate funds for the creation and preservation of up to 2,000 affordable homes in the Portland area.

Despite the affordability issue, however, demand is still strong. RedFin describes the Portland real estate market as somewhat competitive. Homes are only on the market for an average of 24 days before being sold, and hot homes can go pending in as little as 7 days.

And given the continued increase in home prices, buyers are still getting into the market despite the hefty price tags associated with purchasing a home in the city.

Competition Remains High Among Home Buyers

Competition remains strong in Portland. There is currently only a 2-month supply of homes available for sale, which is fueling stiff competition among buyers looking for a home to purchase.

Homes sell on average 1% above the listing price, including hot properties, according to RedFin.

According to Zillow, Portland’s housing market is somewhat healthy right now and prices are expected to continue increasing over the next 12 months, though by how much remains to be seen.

Anyone planning to buy a home in Portland during 2023 should start early and have plenty of patience. In a tight housing market, it can take some time to find a property that checks most of your boxes. Plus, mortgage rates may continue to inch up, so buyers might be better off snagging today’s rate as opposed to the potentially higher rates of tomorrow.

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Want to Apply For a Mortgage in Portland?

Are you looking to buy a home in Portland in 2022 or beyond? Do you need a mortgage to finance your purchase? We can help. Sammamish Mortgage has been working with borrowers across the Pacific Northwest since 1992, including Washington State, Colorado, Idaho, and Oregon. We offer many different mortgage programs to suit the needs of every borrower. Get in touch with us today if you have questions about applying for a home loan.

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