Portland Housing Market Forecast 2025: What to Expect for the Rest of the Year

Wondering if now’s a good time to buy or sell a home? You’re not alone. With all the news about home prices and changing mortgage rates, it’s hard to know what to do.

The good news? Housing experts are sharing their predictions for the rest of the year, and things might be looking up.

Three Key Housing Trends to Watch

1. Mortgage Rates Are Expected to Drop

While we won’t see rates crash back to 3%, experts predict rates will come down slightly by the end of the year. This small decrease can make a big difference in your monthly payment.

Remember: Even a 0.5% rate drop can save you thousands over your loan. But don’t wait for the “perfect” rate – trying to time the market rarely works out.

2. More Homes Are Coming on the Market

Good news for buyers – inventory is growing! More homeowners are deciding to list their homes after waiting for rates to drop.

As Lance Lambert from ResiClub puts it: “The fact that inventory is rising year-over-year strongly suggests that national active housing inventory for sale is likely to end the year higher.”

More homes for sale means:

• Better selection for buyers
• Less competition for each property
• More negotiating power

3. Home Price Growth Is Slowing Down

With more homes available, prices aren’t jumping up as quickly. Experts predict home prices will still grow, but only by about 2% this year.

This slower growth, combined with slightly lower mortgage rates, could improve affordability later this year.

Portland Metro Area Market Update

The Portland metropolitan area (including Vancouver, WA) shows some unique trends worth highlighting:

Portland-Vancouver Metro Housing Market

• Current average home value: About $542,000
• Price trend: Expected slight decrease of -0.8% through January 2026
• Inventory: 3.7 months of supply (up 0.5 months from last year)
• New listings: Up 13.6% compared to last year
• Days on market: Around 34 days on average

The Portland-Vancouver market is showing signs of stabilization. While prices increased 6.3% over the past year, forecasts suggest a slight cooling ahead. This shift gives buyers more options as active listings have increased by 25.5% compared to last year.

The market remains more expensive than the national average ($407,500), but increasing inventory is helping create a more balanced environment between buyers and sellers.

What This Means for You

Next Steps

Market conditions vary greatly from neighborhood to neighborhood across the Portland-Vancouver metro area. What’s happening in downtown Portland might be different from Vancouver or the suburbs.

As a broker licensed in Oregon, Washington, and Idaho, I can help you navigate any market in our region.