The real estate market in Portland, Oregon has experienced a lot of interesting trends and developments over the past few years. So we thought it might be helpful to provide a 2024 roundup of the latest home price trends for the Portland, Oregon metro area.
Here are five things home buyers and homeowners should know, as we move further into 2024.
The median price was around $515,000 in early 2024.
According to data provided by Zillow, the median home value for Portland, Oregon was around $515,000 as of January 2024. The median price point for the broader metropolitan area was slightly lower than that.
In this context, the “median” home value refers to the midpoint for the real estate market. This means half of all homes were priced above the $515,000 threshold, while the other half were priced below it.
Portland home prices dipped slightly in recent months.
Portland, Oregon has a long history of steady home price appreciation. But every once in a while, house values in the area trend downward — usually for a short period of time. That’s what we’re seeing right now, at the start of 2024.
Portland home values peaked during the spring of 2022, when the median topped out at nearly $593,000. But over the past few months, prices in and around Portland have declined a bit (to the median stated in the previous section).
At first glance, this trend might seem concerning to someone who’s about to enter the Portland real estate market. But the truth is, this recent downturn will likely be short-lived if history is any indication. And that brings us to our next home price trend for Portland, Oregon…
They’ll likely start rising again later in 2024.
If you look at the home price history for Portland, Oregon going back 40 years or so, you’ll see that they almost always trend upward.
There have really only been two times during the past 50 years when the Portland area experienced a sustained downturn in prices. The first happened in the wake of the 2008 housing market crash (an event that’s unlikely to repeat itself). The second downturn is the one we are seeing right now, which can be interpreted as a “market correction” following a period of overheated real estate market activity.
The point is, history indicates that home prices in Portland, Oregon will almost certainly start rising again later in 2024. The recent dip in prices will likely reverse course over the coming months. It’s a pattern we’ve seen before.
This year’s price growth will probably be less than previous years.
Hope price trends are usually measured on an annual basis. Monthly changes, on the other hand, can be affected by a variety of factors, including seasonal trends within the real estate market. So they’re less useful in terms of market analysis.
And over the past couple of years, the annual price gains for Portland, Oregon have been substantial. Like most other cities across the country, Portland experienced a surge in home buying activity that began in 2020 and continued for nearly two years.
Now, at the start of 2024, we are seeing a slowdown in real estate activity. So the annual home price growth recorded this year will likely pale in comparison to the past couple of years. And that’s a good thing. The overheated price growth we saw during the early days of the COVID pandemic is not sustainable over the long term.
Which brings us to Portland, Oregon home price trend number five…
The market is returning to a “normal” rate of appreciation.
If we look back over the past few decades, we can see that home prices in the U.S. tend to rise by around 5% annually (on average). So the double-digit price growth seen over the past couple of years was abnormal, from a historical perspective.
Now, in early 2024, the real estate market is moving toward something resembling normal. This can be seen in current home price trends, sales activity, and other metrics.
According to a recent report from the National Association of REALTORS:
“The demand for housing will recover from falling mortgage rates and rising income… In addition, housing inventory is expected to rise by around 30% as more sellers begin to list after delaying selling over the past two years.”
So there you have it, a roundup of recent home price trends in Portland, Oregon, with a general outlook for the rest of 2024.
Need a Mortgage in Portland, Oregon?
Do you plan to buy a home in Portland sometime soon? Do you need mortgage financing to complete your purchase? We can help. Sammamish Mortgage has been helping borrowers across the Pacific Northwest since 1992, including Washington State, Colorado, Idaho, and Oregon. We offer many different mortgage programs with flexible qualification requirements to suit the needs of each borrower, including our Diamond Homebuyer Program, Cash Buyer Program, and Bridge Loans. Contact us today if you have questions about applying for a mortgage.