For years, the Portland housing market was defined by competition.
Multiple offers were common. Inventory was constrained. Buyers often felt urgency simply to secure a home before prices moved higher.
Today, that dynamic has shifted.
But the market hasn’t become weak.
It has become selective.
And that distinction matters.
Over the past three years, affordability has reshaped demand in the Portland metro area. Higher borrowing costs didn’t eliminate buyers, but they narrowed the pool of households able to transact comfortably.
At the same time, inventory has steadily expanded.
Active listings in 2025 peaked above 7,500 homes during the summer months — a meaningful increase compared with prior years. While inventory still reflects seasonal patterns, the overall level of available homes has grown faster than buyer demand.
This has created a structural shift in market behavior.
Not every home sells automatically.
Homes sell when they clearly solve a problem.
One of the clearest ways to understand today’s housing environment is by examining the relationship between supply and demand.
Buyer activity has remained relatively stable over the past two years. Monthly pending sales in 2024 and 2025 generally ranged between roughly 1,700 and 2,300 transactions, reflecting a consistent but affordability-constrained level of demand
Inventory, however, has expanded more meaningfully.
The result is a widening gap between sellers entering the market and buyers able to transact within current payment realities.
This gap does not indicate a lack of demand.
It indicates an increase in choice.
And choice is what transforms a competitive market into a selective one.
Even within this more selective environment, well-positioned homes continue to move efficiently.
Homes that offer:
• clear value relative to payment
• strong functional layout and livability
• realistic pricing aligned with financing conditions
• turnkey or low-risk condition
often attract meaningful interest and can still sell quickly.
Conversely, homes that rely on outdated expectations or pricing anchored to prior market cycles may experience extended timelines.
This is not a marketing issue.
It is a positioning issue.
It’s important to recognize that a selective market can still be stable.
Over the past three years, Portland home prices have held within a relatively narrow range around the low-$600,000 level. This stability reflects a market supported by limited long-term supply, demographic demand, and steady employment conditions.
Yet stability does not guarantee universal demand.
Instead, it creates an environment where buyers have time to evaluate options and sellers must differentiate their property more intentionally.
For buyers, a selective market offers something that has been rare for much of the past decade: the ability to make thoughtful decisions without the pressure of rapid appreciation or extreme competition.
For sellers, the shift requires a different approach.
Success today is less about exposure and more about clarity:
• understanding the buyer pool
• aligning pricing with payment sensitivity
• positioning the home relative to competing inventory
• recognizing the difference between market value and aspirational value
In short, strategy now matters more than speed.
The Portland housing market is not experiencing a collapse or a resurgence.
It is experiencing normalization.
The expansion of inventory alongside steady but constrained demand has created a market that rewards precision over optimism and positioning over momentum.
This is what defines a selective market.
And selective markets are where thoughtful real estate strategy provides the most value.
If you’re considering buying or selling in 2026 and want to understand where your home or search fits within today’s selective market, I’m happy to walk through the data and positioning strategy with you.
