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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 2025? 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.
Let’s start with an update on home prices. According to recent real estate reports, the median sales price for Portland, Oregon was $524,402 in January 2025. That was the most recent data available at the time of publication.
That number is relatively the same from the same time the year before, but forecasts suggest that prices may increase over the next 12 months. These trends foreshadow what the Portland real estate market might be like in 2025.
Related: Portland Conforming Loan Limits Increased for 2025
Many homes have seen price reductions in the recent months, and 2025 will likely be no different. While Portland may still be a seller’s market, it could be shifting in the direction of homebuyers into 2025.
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.
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.
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 2025 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 January 2025.
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 2025.
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 2025, 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.
Are you looking to buy a home in Portland, OR in 2025 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 or want to get an instant rate quote.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.