Forest Grove, Oregon Real Estate Market Report with 2024 Forecast
Every month we highlight a unique suburb of Portland and provide an overview of its real estate market to assist in your housing decisions. Explore our Portland Suburb Real Estate Market Reports to discover more suburbs we recently covered. Our 2024 Portland real estate forecast is another valuable resource for a comprehensive overview of the metro real estate market.
This month we’ll focus on Forest Grove, a suburb located approximately 27 miles west of Portland in Washington County. With a population of just over 26,000 people, this tight knit community is a great place to live and offers its residents plenty to do. With your home base in Forest Grove, both ample hiking opportunities and the Oregon coast are just a short drive away. And it is just as easy to make the convenient trip down Highway 26 to enjoy shopping or nightlife in Portland. However, residents also have access to plenty of opportunities for exploration and entertainment right at home in Forest Grove. For one, its location in Willamette Valley wine country provides access to 30+ wineries as well as saké brewery, SakéOne. The city has 357 acres of parkland for pursuing outdoor recreation, including BMX trails, an aquatic center, and plenty of space for walking, hiking and biking. Forest Grove is also home to Pacific University, a top ranked university with a 10:1 student ratio. A fun trivia fact about Forest Grove is that it is the location of the world’s tallest barber shop pole, at 72 feet tall!
Now let’s take a look at Forest Grove real estate by examining the statistics contributing to its current housing market.
Forest Grove Housing Inventory is Decreasing Slightly
Forest Grove housing inventory hit its peak in October after rising steadily since the month of June. Inventory began dropping by the end of October and we expect this decrease to continue over the next several months just as in both 2021 and 2022, when inventory continued to drop through the Winter months and into the Spring. The natural decrease in listed homes we always see at this time of year is due to the tendency of both sellers and homebuyers to withdraw during the holiday season to wait for the new year to resume selling or home shopping.
The chart below illustrates that Forest Grove inventory was higher overall in 2023 compared to the previous two years, though all three years shared a similar annual pattern of inventory. This less productive year in our local real estate market is the outcome of both high mortgage rates and inflation, which have worked to deter potential buyers.
Forest Grove Real Estate Prices Remain Steady
The chart below from Fidelity demonstrates how real estate prices in Forest Grove have remained virtually unchanged throughout the entire year. The average price per square foot of a Forest Grove home is currently roughly the same as prices at this time of year in 2021. We expect these prices to rise slightly in the spring when it is the best time to sell a home, but drop slightly again next fall and winter 2024. Forest Grove is doing well compared to many other part of the greater Portland real estate market, where prices have fallen in 2023.
Forest Grove Average Days on the Market
The average number of days for a listed home in Forest Grove to stay on the market has been increasing since July and has now reached 95 days, or over three months. Homes in the Portland metro tend to sit on the real estate market longer during the Fall and Winter months, and the length of days only increases during the holiday season. Similar to the pattern of the last two years, the number of days for homes on the market in Forest Grove will likely continue to increase until early Spring.
Forest Grove, Oregon Homes for Sale
Browse all Forest Grove homes for sale using the interactive map on Portlandhomesforsale.com.
Forest Grove, Oregon Real Estate Market 2024 Forecast
Homes in Forest Grove gained an overall 2.8% price increase from mid-2022 to mid-2023 despite the cooler market conditions caused by high mortgage rates. We can attribute real estate growth in this area to the continued popularity of Portland’s suburbs with buyers, not to mention Forest Grove’s many desirable features for homeowners.
The current market conditions in Forest Grove are ideal for buyers who would enjoy a larger pool of homes to choose from at consistent or potentially lower prices from sellers whose homes have been sitting on the market for longer periods.
The housing market in Forest Grove will likely behave similarly in 2024 with the continued influences of high mortgage rates and inflation. Because the seasonal fluctuations of the local housing market also play a major role in shaping market conditions, we can expect the Forest Grove market to warm back up in the Spring with increased buyer traffic and competition leading to higher prices.
Forest Grove, Oregon 2024 Real Estate Forecast
We expect prices to rise slightly in the spring and decline again in the fall and winter for Forest Grove, Oregon. However, as Forest Grove had a tiny price increase in 2023 (a very difficult year in real estate), we expect their prices to further rise overall in 2024 as the overall market is expected to improve. We forecast that home prices in Forest Grove, Oregon will rise by 4% by the end of 2024.
Want to Buy or Sell a Home in Forest Grove, Oregon?
If you are interested in buying your next home in Forest Grove or listing your current home for sale, our top 1% buyer’s and seller’s agents are ready to assist you. We will utilize our 20+ years of experience buying and selling in the Portland metro area and its suburbs to help you negotiate the best terms, and use our optimized marketing strategy to give your home the best exposure online. On top of this, we charge a lower than average commission rate while providing you with top-notch service. Chat with the bot on this site or give us a call at 503-714-1111 today!
