One of the greatest long-term financial decisions a family can make is to own a home. For most people, real estate is the largest asset they’ll ever own, and over time it has proven to be a powerful way to build wealth. In the Portland metro area, average home prices have increased at about 5% annually over the past 30 years. That type of consistent growth outpaces inflation and has helped thousands of homeowners build equity, which later funded their retirements, college tuitions, and even new business ventures.
However, here’s the reality: not every year is like the one that came before it.
Between 2020 and 2022, we saw a massive surge in prices — nearly 24% appreciation in just two years. It felt like homes were being bid up overnight. But history shows that markets like that don’t last forever. We’ve seen similar runs before, like 2004–2006, when prices jumped more than 30% in two years, only to level out when the market corrected.
These boom periods are exciting, but they are not sustainable. They eventually give way to slower growth, stability, or sometimes even short-term price declines.
That doesn’t mean owning a home is a bad investment — it means that real estate, like any market, moves in cycles.
Even with cycles, homeowners win over the long haul:
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Equity Growth: Your mortgage payment builds equity.
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Stability: You control your housing costs.
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Wealth Building: Over decades, that steady ~5% annual appreciation compounds into life-changing value.
As buyers or sellers, it’s important to take the long view. Don’t get caught up assuming the market will always look like last year. Booms are temporary, but ownership is permanent. If you’re waiting for the “perfect” moment, history tells us that perfect moments are only visible in the rearview mirror.
The key is to buy when the numbers make sense for you — when you can afford the payment and you see yourself staying in the home for the long term. That’s how you put yourself on the right side of history in Portland real estate.
Most homeowners I meet aren’t 100% sure what their property is worth today — and that’s normal. If you’d like clarity, my team and I provide a complimentary annual equity review. It’s a clear, researched look at your home’s value, the local market conditions, and where things may be headed over the next 12 months.
If you’re curious about your equity or just want a pragmatic outlook on the Portland market, reach out.
