Oregon Real Estate Market: What to Expect In 2025?

8 mins read Jan 21, 2025
Listen
copy-link facebook twitter linkedin whatsapp


The current median home sale price of $499,400 is rising at 1.4% YoY. Moreover, homes spend only 53 days on the market. This indicates that the Oregon real estate market is pretty much competitive.

The average months of home supply are 3 months YoY. A market with fewer months of supply indicates a seller’s market. However, the number of homes sold increased by 20% YoY. There were 3,478 homes sold last month, up from 2,890 homes sold last year.

The NAR settlement has removed the buyers’ agent compensation and many MLSs have followed the suit. It will probably reduce the home selling prices. As a result, buyers will have improved affordability along with low mortgage rates. Here are some tips for you to sustain in the market:

  • If You Are a Home Buyer: Homes for sale (13,763) are growing at 5.7%. Along with this, the expected drop in home prices can benefit you. The low interest rates at 6.54%-6.50% are now in buyers’ favor. Also, in case of low housing demand and prices, you can request for seller concessions.
  • If You Are a Home Seller: You can lock in Oregon’s current high home prices. The correction in the home prices is long overdue. In the wake of the NAR settlement, home prices may drop a little more. If you’re a seller, you can still make profits on home sale before prices potentially drop.

So, How Is the Real Estate Market in Oregon?

Balanced!

The number of homes for sale increased by 5.7% compared to the previous year. This is the 5th consecutive month the housing market has witnessed such growth. Other important facts are:

  • Median Days on Market: The median days on the market for homes for sale are 53 days, up by 6 days YoY. This trend suggests a high demand in the Oregon real estate market.
  • Housing Inventory and Supply: As a buyer, you have more options now as the housing inventory is up by 5.7%. There are 13,763 homes for sale in Oregon, with an average supply of 3 months.
  • Average Home Prices: The median home price in Oregon is $499,400. But, it is expected to decrease due to a rise in inventory in the latter half of 2025. The sale-to-list price ratio is 99.1%, down by 0.51 pt YoY.
  • Home Sales: Home sales increased by 20% YoY! Only 3,478 homes were sold, compared to 2,890 last year.
  • Average Rent Prices: Rental costs vary statewide. The median rent is $1,838 with a zero month-over-month change.

Current Trends in Oregon’s Market

Oregon real estate market has a balanced inventory of homes for sale. Besides this, a steady increase in median home prices, favors home sellers. Homes spend 53 days on the market which depicts the competitive market.

Let’s look at some more facts:

  • Fewer Days on the Market: Homes are spending 53 days on the market before going under contract. This is visible in metro cities like Forest Grove and Happy Valley where the average days on market is between 20 to 26 days.
  • Multiple Offers on Homes: Cedar Hills has got 91 and Garden Home-Whitford got 87 in Redfin’s Compete Score. It means the housing market in Oregon is very competitive. It shows that many homes get multiple offers, some even sold without contingencies.
  • High Sale-To-List Price: The average homes sell for about 2% above list price whereas hot homes sell for about 3% above list price. The average sale-to-list price ratio in Cedar Hills is 102.5%.
  • Homes Sell Above List Price: On average, 28.0% homes sell above list prices. However, in June, 38.6% of homes experienced price drops, compared to 34% last year. This trend indicates a gradual shift toward a buyer’s market.

Your Path to Homeownership Starts Here🏡

Select Your Loan Type

  • new-purchase active New Home Purchase
  • new-purchase active Mortgage Refinance
  • new-purchase active Cash-out Refinance
Please select a Loan Type first
⚡With Houzeo, you can start your home-buying journey in less than 2 minutes.

Oregon Housing Market Predictions 2025

Here are the predictions for Oregon’s housing market in 2025:

  1. Number of Home Buyers Will Increase: As inventory grows and homes stay on the market, more home shoppers are expected to re-enter the market. The historically high interest rates averted buyers in 2023. But the easing inflation and stabilizing rates will bring back house hunters.
  2. Home Prices Will Continue to Rise: Home prices rose steadily in the top metros across OR YoY, reaching $499K. Cities like Bend and Medford expect a surge in home prices 3.8% by March 31, 2025.
  3. New Home Constructions Sales Will Increase: As per Oregon Building Permits Survey, 17,823 new private housing units were authorized. It increased by 15.4% from 2022. Oregon’s housing market’s high demand will be served with the new constructions.
  4. iBuyers Will Continue to Make Lowball Offers: iBuyers like Opendoor and Offerpad, which once offered 104.1% of market value in 2021, now offer around 70%. Such lowball offers to sellers will increase opportunities for individual buyers.

Bonus Predictions: Buyer Broker Commissions Will Be Zero!

In a shocking turn of events, the NAR settlement has completely eliminated buyer agent fees from the MLS. Let’s understand its impact:

  1. Buyer Agents Will Be Affected: With buyers now responsible for directly paying their agents, many may choose to find their homes on their own. This may very soon render buyer agents obsolete.
  2. Seller Concession Will Increase: Without the obligation to pay buyer agent commissions, sellers might see increased requests for seller concessions and offline transactions. Additionally, builders are offering significant concessions to attract buyers, further influencing the market dynamics.
  3. Builders Will Compete More: Home builders are persuading buyers to buy new construction homes with mortgage buydowns worth $30K!
  4. Sellers May Offer Fees for Services: Sellers may offer at least 1%-2% fees to the buyer agents in order to sell their homes quickly. Increasing competition from builders may also cause sellers to pay extra fees to buyer agents.

Is the Housing Market in Oregon Going to Crash?

A housing market crash in the Beaver State is unlikely.

Oregon boasts one of the nation’s most thriving economies. OR has the 10th highest household income in U.S. which is $71,562. Some top cities in Oregon are poised for home price growth.

Portland and Eugene shows a projection of 3.1% rise by March 31, 2025. Portland has the largest population and is the home to companies like Nike, Inc. and Intel. With a population of around 652,500, it’s the fastest-growing city in Oregon.

Oregon’s job market is also strong. The unemployment rate is only at 4.1% and its private-sector employment has increased 0.5% of the past 12 months. This affordability, combined with strong economy, makes a housing market crash in Oregon unlikely.

2025: Is It a Buyers’ or Sellers’ Market Now?

Oregon real estate market favors sellers in 2025. (And buyers, too!). The Oregon real estate market is expected to lean more in favor of the buyers in the latter half of 2025.

Home prices are rising slowly, and the number of homes for sale has increased by 13.5% YoY. Buyers now have more choices. With mortgage rates around 6.54%, buyers also have more purchasing power.

Consequently, more homeowners are likely to list their homes on Oregon MLS. The 2.3% increase in new active home listings in Oregon has brought back home shoppers. So, whether you are looking for a condo in Gladstone or a single-family primary home in River Road, you will find your dream home in the coming months.

Find Your New Home With Houzeo

With thousands of property listings, Houzeo.com is one of the biggest home listing sites in the US. Find condos, townhouses, co-ops, and other homes for sale on Houzeo.

Find Your Dream Home 🏡

View 4 Homes For Sale in Oregon

Where do you want to live?

Please enter valid address

» Need More Clarity? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.

Disclaimer: This article is for informational purposes only. It does not constitute an offer, solicitation of an offer, or any advice or recommendation. Houzeo doesn’t provide any legal or financial advice. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Houzeo Corp., its affiliates, or its employees. However, the author does not make any representation or warranty, express or implied, as to the information’s accuracy or completeness, nor does the author recommend that the attached information serve as the basis of any investment decision.

Frequently Asked Questions About Oregon Real Estate Market

When will the housing market crash in Oregon?

Not for the next few years. Oregon's housing market will not crash in 2025. Despite low housing demand and modest home prices, market is afloat.

What are the real estate housing market 2025 predictions for Oregon?

2025 is a balanced market with 2 months of supply and low inventory. Here's our forecast for Oregon's housing market in 2025: (1) Home buyers have returned to the market. (2) Housing inventory will increase. (3) Property prices in Oregon will increase. (4) Buyer agent commissions will be zero!

Are home prices dropping in Oregon?

Not yet! Currently the property prices in Oregon are increasing at a good rate of 1.9% YOY. However, you can still find the cheapest places to live in Oregon. You can find the value of your favorite homes on Houzeo's home value estimator.

Is it a good time to buy a house in Oregon?

Yes! Currently, there are very few buyers in the market compared to the supply of homes in Oregon. Homes for sales are up by 13.5%. The low mortgage payments have made buying a home affordable. More buyers will return in the second half of 2025, so we'd recommend you buy a house now.

Cross

Save $20

On any Houzeo plan

Use Coupon Code:

Copied
4.9 out of 5 Star Rated Houzeo Concierge

Need help? Call us on

(844) 448-0110