Oregon housing market: Everything you need to know

From the big city of Portland and the Pacific coastline to the Cascade Mountains and the high desert, Oregon has a lot to offer. With all this natural beauty, it’s a no-brainer that people love living here. Whether you’re looking to buy, sell or both, here’s the state of the Oregon housing market.

Oregon housing market overview

It’s apparent that 2023 is different for real estate than last year was. Mortgage rates have doubled since January 2022, when they stood at 3.4 percent, which has a profound effect on the housing market.

Nationwide, home sales are slowing and many markets are seeing prices drop. Oregon is no exception. According to data from Redfin, the state’s median home sale price fell by 1.4 percent in February compared to the same month a year ago, and homes are now sitting on the market 35 days longer than last year. In fact, January 2023 saw the lowest number of homes sold in Oregon in the past five years.

Still, Oregon has some hot markets. In Salem, for example, February’s median price was actually up 5 percent since last year. And the state’s overall decline of 1.4 percent is very slight compared to neighboring California, where prices declined 6.6 percent in the same time frame. Plus, Oregon’s median sale price of $481,000 is still significantly higher than the national median of $363,000.

Oregon housing trends & stats

Should you buy or sell in the Oregon housing market?

Whether you already live in Oregon or you’re planning on moving from out of state, spend some time researching the housing market before buying or selling. It’s a big state with a lot of variety, and the market in Portland is going to be vastly different from, say, Baker City or Tillamook. Here’s what buyers and sellers should consider.

If you’re a home seller

As it is everywhere, selling a house in Oregon is all about preparing the home for sale and setting the right asking price. Homes are sitting on the market for much longer than they were last year, and more than 22 percent of listings in February had price drops, so having a realistic expectation of your home’s value is essential to a successful sale.

There are also more homes on the market now than there were this time last year, so be prepared to work a bit harder to attract buyers. But don’t be fooled into thinking the market has completely flipped: While inventory is up, it’s still not high enough to meet demand, meaning Oregon is still a seller’s market.

If you’re a homebuyer

What’s true for sellers is also true for buyers in Oregon: Prices are starting to level out or drop, and there’s more inventory on the market. Lower prices are a good thing for Oregon buyers, as the overall cost of living in Oregon is high. If you’re moving from a less expensive state, use Bankrate’s cost of living calculator to understand what you’re in for.

When you’re ready to buy, compile all of your financial paperwork — tax returns, bank statements, pay stubs and any other information on income and assets — and get preapproved for a mortgage. With a preapproval letter in hand, any offer you make will be taken seriously and could carry more weight than other offers.

Preapproval tells you how much a lender is likely to loan you, but it also helps to do your own research on how much house you can afford. For example, a lender may be willing to loan you $500,000, but that doesn’t obligate you to spend the full amount. You don’t want to find yourself house poor.

Oregon housing market predictions

Across the country, many economists and real estate experts are predicting a decline in the housing market. Prices have been slowly falling for months, largely because high interest rates are keeping many buyers from entering the market.

But will the housing market crash in Oregon? That remains unlikely. Market fundamentals are much better all over the country than they were during the 2007-08 housing crisis. In general, homeowners have higher credit scores and lower debt-to-income ratios than they did 15 years ago. Also, remember that prices increased dramatically over the past few years. The price drops Oregon is seeing are likely the market gradually adjusting and correcting course, not crashing.

Find an Oregon real estate agent

The housing market is complex. This is true anywhere, but holds a lot of weight in Oregon, especially in heavily populated, competitive markets. An experienced agent who knows the area well can identify what you need in a property when you’re buying, and outline how to get the most money for your home if you’re selling. The right agent can guide you through your entire real estate journey, and help you navigate any bumps along the way.

FAQs

• Are house prices dropping in Oregon?

  Yes, prices are dropping in Oregon, but it’s not a steep decline. The median sale price in February 2023 was $481,000, according to Redfin, which is 1.4 percent lower than the same time last year but still quite a bit higher than the national median of $363,000. Homes are selling more slowly, too, spending an average of 54 days on the market.
  

• Is it a buyer’s or seller’s market in Oregon?

  Though home prices are dropping slightly, on the whole Oregon is still a seller’s market. The housing inventory is low with just a 2-month supply, per Redfin data, and a balanced market typically needs 5 to 6 months worth. That puts sellers in the driver’s seat. However, more populated cities, like Portland, Salem and Eugene, remain competitive.