Portland, OR Housing Market Report

The Portland housing market entering December 2025 reflects a period of stabilization following a year of modest correction. With a median home value of $516,539, the market has seen a slight year-over-year decline of 1.47%, yet recent monthly data suggests a recovery is underway. The current environment is increasingly favorable for buyers compared to previous years, characterized by a significant 12.32% increase in active inventory and a median of 74 days on market. This shift provides purchasers with more leverage and selection, though the sale-to-list ratio remains at a balanced 1, indicating that well-priced homes are still transacting at their asking prices.

Price trends over the last six months reveal a resilient upward trajectory after a mid-year dip. Since July 2025, values have climbed steadily from $512,750 to the current $516,539. This late-year momentum suggests that the initial downward pressure seen earlier in the year has eased, likely driven by a combination of stabilized mortgage rates and a persistent demand for the Portland-Vancouver-Hillsboro metro area's unique urban-suburban lifestyle. While inventory is growing, it is not yet at levels that would trigger a sharp decline in pricing, creating a floor for property values.

Looking ahead, the Portland market is expected to remain in a state of balanced transition. Sellers should be prepared for longer holding periods, as the average time to sell has increased by a full week over the past year. Pricing strategy is now more critical than ever; with more options available, buyers are less likely to engage in bidding wars. For buyers, the current climate offers a rare window to negotiate without the frantic pace of the post-pandemic boom. However, with rents rising by 1.42% year-over-year to a median of $1,722, the long-term value proposition of homeownership remains strong for those planning to stay in the region for five or more years.