Portland, OR Housing Forecast for 2024: Changes Are Coming

October 5, 2022
Last updated:
January 31, 2024
In This Article

As we explained in a recent blog post, the real estate market in Portland, Oregon has undergone quite a few changes last year. And it looks like that could continue into 2024 as well.

Recent forecasts and predictions for the Portland-area housing market suggest that things could be very different next year, compared to what we’ve become used to.

The biggest change has to do with the overall pace of the real estate scene. It’s not taking as long to sell a home these days, which has shifted the market in favor of buyers.

Here are three possible predictions for the Portland, Oregon housing market in 2024.

  1. Portland house values will likely level off in 2024.

Like most metro areas across the country, the Portland area experienced a significant increase in home prices over the past few years. This was partly due to a pandemic-fueled surge in purchases. In fact, Portland was one of several “pandemic boomtowns” that experienced an influx of buyers from other parts of the country.

As of January 2024, the median home value for Portland was around $515,001. That was 1.9% lower than a year earlier.

This is a cycle we’ve seen in the past. A surge in demand from buyers pushes prices up, eventually leading to a decline in demand. And when purchase demand drops off, home prices tend to cool as well.

It’s too soon to say if the recent dip in prices is a short-term trend, or the start of a more sustained downturn. But it’s a safe bet that Portland-area home prices will rise a lot more slowly in 2024 than they have over the past few years months.

Even so, it’s still a good market for buyers. History shows that homes in the Portland, Oregon metro area hold their value well over the long term. And that’s what matters to most buyers.

Portland Mortgage Rates

  1. Buying a home could be less stressful in 2024.

Higher housing costs have reduced the number of buyers in the real estate market. This in turn has reduced the competition level among buyers, offering them a chance to “catch their breath” after the frenzied conditions of the past two years.

Which brings us to prediction #2 for the Portland real estate market. Next year, the home-buying process could be a lot less stressful. And wouldn’t that be a welcome change?

Later this year, Portland, Oregon home buyers might find that they have more bargaining power as well. More houses are coming onto the market, and a significant number of them have had price reductions. This means the market is shifting in a way that could favor Portland home buyers well into 2024.

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  1. Inventory could remain a challenge for a while longer.

Overall, housing market inventory in the Portland area has seen a drop over recent months. But there’s a new variable that might limit inventory growth going forward.

Right now, the average rate for a 30-year mortgage is 6.6% (as of January 2024). This is much higher than what it was last year and the year before. Because of this, many homeowners in the Portland area have lower interest rates on their mortgages than the current market rates. And that might make some of them reluctant to sell.

But higher rates might not be that big of a deal for some sellers. For instance, Portland-area homeowners who sell their homes at a big profit and move to a more affordable area would still be in a good position, despite today’s higher mortgage rates.

Here’s the bottom line on the inventory situation. Real estate market supply in the Portland area has increased over the past 12 months. But those gains could slow down if more and more homeowners decide to stay put instead of selling. 2024 will still see a tight housing market overall in Portland.

The general forecast for the Portland real estate market can be summed up with a couple of sentences. Buyers should be able to enjoy more favorable conditions in 2024, especially when it comes to lower mortgage rates. But they’ll still want to bring their ‘A’ game as they start the house-hunting process.

Ready to Apply For a Mortgage?

Do you have questions about mortgages? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, Colorado & California. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Our programs include the Diamond Homebuyer ProgramCash Buyer Program, and Bridge LoansContact us today with any questions you have about mortgages.

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