What to Expect from Portland’s Real Estate Market in 2023

December 7, 2017
Last updated:
December 6, 2022
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The Portland, Oregon real estate market has generated a steady stream of headlines over the last couple of years, mainly due to rapidly rising home prices in the area.

What might we expect from the Portland housing market in 2023? What will be some influencing factors that will shape the market this year? Here are some current trends that could shape the real estate scene this year, affecting both buyers and sellers.

Outlook for the Portland Real Estate Market in 2023

Let’s start with an update on home prices. According to recent real estate reports, the median sales price for Portland, Oregon was $567 842 in December 2022. That was the most recent data available at the time of publication.

That number is up 3.2% from the same time the year before, but forecasts suggest that prices may level off to some degree in Portland over the next 12 months. These trends foreshadow what the Portland real estate market might be like in 2023.

Live Portland Mortgage Rates

Related: Portland Conforming Loan Limits Increased for 2022

Buyers May See More Home Price Reductions

Many homes have seen price reductions in the recent months, and 2023 will likely be no different. Whille Portland may still be a seller’s market, it could be shifting in the direction of homebuyers into 2023.

The higher housing costs we’ve seen as of late is reducing the number of homebuyers in the Portland real estate market. In turn, this has alleviated some of the competition among buyers, which is making homebuying a bit less stressful for them.

Listings are also taking longer to go pending. According to RedFin, the average home in Portland goes pending in 25 days right now, compared to 12 the same time last year.

Strong Local Economy

Many people are also flocking to Portland because of its thriving economy. The labor force is strong, and people appreciate a place with relatively affordable home prices along with employment opportunities.

Right now, the unemployment rate in Portland is 3.9%, and has been on the decline as the economy strengthens following the recent health crisis.  The labor market is anticipated to improve even more over the next few years as the economy recovers from the crisis.

Tight Inventory Still a Factor

Inventory is another important factor that’s driving the current housing market. A shortage of housing supply has affected the area over the last couple of years, and it will likely be an issue for the Portland real estate market in 2023 as well. So, it’s still a sellers’ market, but not as strong as it was months and years earlier.

Recent reports show that Portland had roughly a 2-month supply of homes for sale as of December 2022.

A balanced real estate market has around five to six months’ worth of supply, according to economists. So, by that definition, the housing situation in Portland is still very constrained. This will be another influencing factor for the Portland housing market in 2023.

Related: 11 Best Neighborhoods in Portland Oregon

The bottom line is that we are starting to see some changes with regard to home prices and available supply. Still, the Portland real estate market will remain somewhat competitive in 2023, though perhaps not as strong next year compared to years prior. The short supply will continue to put pressure on home prices, though they appear to be slowing down.

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Want More Info on Mortgages in Portland?

Are you looking to buy a home in Portland in 2023 and need to apply for a mortgage to finance your purchase? We’re here to help. Sammamish Mortgage has been providing mortgage programs to borrowers all across the Pacific Northwest since 1992, including Washington State, Colorado, Idaho, and Oregon. Get in touch with us today if you have questions about applying for a home loan.

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