Portland’s Market Is Shifting: Here’s Why Buyers Are Gaining Ground in 2025

The Portland housing market is entering a new chapter. After years of rapid growth and intense seller advantage, 2025 is shaping up to be a turning point — signaling a shift toward a more balanced, and even buyer-friendly, market. While some hot neighborhoods are still seeing multiple offers, the broader landscape is changing. Here's why.

1. Slower Price Growth

Home price appreciation is finally cooling off. Over the last few years, Portland experienced double-digit annual increases, pushing many buyers to the sidelines. Now, prices are still rising — but at a more sustainable pace. Current data shows year-over-year growth around 2–3%, a sharp contrast from the nearly 10% seen in previous years. This moderation is making homes more accessible and signaling a slowdown in the seller-driven frenzy.

2. Rising Inventory

Portland is seeing a noticeable increase in active listings. In early 2025, inventory levels have risen to about 3.6 months — a significant jump from the less-than-one-month supply during peak demand years. While still technically below a fully balanced market (typically around 5–6 months of inventory), this uptick gives buyers more choices and reduces the pressure to act immediately.

3. Changing Buyer Behavior

Higher mortgage rates — hovering in the mid-6% to low-7% range across Oregon — have led many buyers to reassess their approach. Instead of jumping in quickly, buyers are taking time to evaluate their options, compare neighborhoods, and ensure they're not overextending themselves. This shift has introduced more strategy into the buying process, as shoppers wait for price adjustments or focus on areas with more favorable conditions.

4. Longer Days on Market

Homes are sitting longer than they did during the peak of the market. Whereas properties often sold in under a week in 2021 and 2022, today’s average is closer to 45 days. While this may feel like a slowdown, it actually reflects a healthier and more sustainable market rhythm. Buyers benefit from having time for second showings and thoughtful decisions, while sellers should adjust expectations and plan for longer timelines.

5. Negotiation Power Is Returning

With more inventory and longer market times, buyers now have leverage that was nearly impossible in past years. There are increasing opportunities to negotiate on price, closing costs, and repairs — especially in neighborhoods with higher inventory or where new construction is prevalent. While top-tier homes in highly desirable areas like Sellwood, Alberta, or Lake Oswego are still seeing quick sales, most buyers today have more breathing room and bargaining power.

6. What Buyers Should Know

This shift means opportunity. Buyers can explore more listings, avoid rushed decisions, and even score deals in specific areas seeing price dips. However, well-priced, move-in-ready homes still move quickly, so staying prepared and working closely with a knowledgeable agent remains essential.

7. What Sellers Should Expect

For sellers, strategic pricing is critical. Overpricing in this market can lead to extended days on market and eventual price reductions. Sellers should also invest in curb appeal, staging, and high-quality marketing. While homes may not sell overnight, those that are positioned well from the start will attract the right buyers — even in a shifting market.

The Bottom Line

Portland’s housing market is gradually balancing after years of intense seller dominance. While not a full buyer’s market across the board, current trends give buyers more options and leverage than they've had in years. At the same time, sellers can still succeed by pricing competitively and preparing their homes properly.

Whether buying or selling in 2025, staying informed and working with a local expert is more important than ever. The market is changing — and with the right guidance, so can your opportunities.