Search

Leave a Message

Thank you for your message. We will be in touch with you shortly.

Explore Our Properties
Background Image

What Portland’s Rising Inventory and Falling Demand Means for Buyers and Sellers in 2025

David Caldwell  |  June 13, 2025

As we head into the summer market, Portland's housing data tells a story of imbalance—one that's affecting both buyers and sellers.

Let’s look at the facts from the May 2025 Market Action Report:

📈 More Homes Hitting the Market

In May, new residential listings climbed to 3,651, up 4.1% year-over-year and nearly 9% over last month. It’s the most active May we’ve seen in years. As inventory continues to climb we currently have over 6,400 active listings on the market today.

🏠 But Pending Sales Aren’t Keeping Up

Pending sales actually fell 2.7% year-over-year to 2,299. That growing gap between supply and demand has pushed inventory up to 3.3 months—compared to just 1.9 months a year ago. That’s a 74% jump in available housing supply.

This signals a shift: while more homes are for sale, fewer are going under contract. The market’s cooling beneath the surface.

💵 Price Growth Has Slowed

The 12-month rolling average sale price is up just 1.5% to $612,100, while the median sale price rose 2.0% to $547,500. That’s modest appreciation by Portland standards and shows buyers are pushing back on price.

And sellers should take note—closed sales fell 5.7% year-over-year.

🧮 Affordability Remains a Pressing Issue

With mortgage rates averaging 6.8%, even a household earning the Portland-area median income of $124,100 can only afford 91% of the monthly mortgage payment on a median-priced home. That’s assuming a full 20% down—something fewer buyers can manage today.

💡 What This Means

For sellers: Pricing and presentation are everything right now. The days of “list and sell” are behind us, especially with more homes on the market and buyers being rate-sensitive.

For buyers: You have more choices and slightly more leverage—but monthly payments are still high. Strategy and negotiation matter more than ever.

This isn’t the overheated seller’s market of 2021, nor a full buyer’s market. It’s a high-stakes balancing act between affordability and inventory.

If you’re planning to move this year—buying, selling, or both—let’s talk through a strategy tailored to this moment.

– David Caldwell
Principal Broker, Hillshire Realty Group

Follow Us On Instagram