Happy Valley, OR Real Estate Market Report with 2025 Forecast

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Each month we highlight a suburb of Portland, Oregon and profile its housing market as a resource for your real estate planning needs. To learn more, check out our Portland Suburb Real Estate Market Reports to find all the suburbs we have covered. For an overview of the Portland metro real estate market, you can read our current monthly report and our 2024 Portland real estate forecast.

This month we’ll focus on the suburb of Happy Valley, located roughly 12 miles east of downtown Portland within Clackamas County. Happy Valley’s location provides residents with easy access to beautiful natural areas surrounding Portland, including the Clackamas River Scenic Waterway. At the same time, this suburb offers plenty to do and explore within its boundaries. Happy Valley is the home of the iconic Pickathon music festival that attracts thousands of concertgoers yearly with its unique experiential approach. The city is a planned-growth community and the result of years of planning to incorporate its commercial centers, trails, and 11 city parks for residents to enjoy.

Like most Oregon cities, Happy Valley has a number of favorite local haunts, including Stickmen Brewing Company and a Willamette Valley Vineyards tasting room and restaurant. Another highlight is Happy Valley Station. This food cart haven features over 18 food trucks, a 45-tap dedicated beer, wine and cider cart and a large covered eating area where you can enjoy your meal.

Now let’s take a look at the numbers that are shaping the housing market in Happy Valley.

Happy Valley Housing Inventory is Starting to Increase

Available home inventory in Happy Valley reached its highest peak in the last few years in November and has been declining ever since. Levels began to even out in March and are just beginning to increase again in April. Due to the seasonal cycles of our local real estate market, we expect to see a yearly increase in inventory toward the end of Spring and over the summer months. As you can see on the chart below, inventory in Happy Valley has followed this trend each year (with the exception of 2021). As the number of active home buyers on the market begins to wane while a growing number of new homes are continually added, home inventory in Happy Valley should continue to increase throughout the Summer.

Happy Valley, Oregon Inventory Chart. Courtesy of Fidelity National Title

Happy Valley Real Estate Prices are Increasing Slightly

Home prices in Happy Valley, most accurately calculated by price per square foot, have remained virtually unchanged since August of 2023. Home sale prices typically increase over the spring months in our local real estate market as they did in 2023, as shown on the Fidelity chart below. But in 2024 prices in Happy Valley did not undergo the usual increase we expect to see during the Spring season, and instead remained relatively static. As we near the end of Spring and more homes continue to be added to the market while the number of buyers dwindles, less competition for available homes should lead to an overall decrease in home prices.

Home prices in the Portland metro area experienced an overall decrease in home prices in 2023 (with a few exceptions). Clackamas County, which includes the suburb of Happy Valley, experienced a -1.9% price decrease compared to the previous 12 months. With the tendency for prices to continue to increase through the Spring in our local housing market, prices in Happy Valley may continue to increase slightly over the next several weeks before beginning to drop again as Summer approaches.

Happy Valley, Oregon Price per Sq. Ft Chart. Courtesy of Fidelity National Title

Happy Valley Average Days on the Market

As you can see on the chart below, the number of days for homes in Happy Valley to stay on the market follows a seasonal pattern. Listed homes tend to increase in market time over the Fall and Winter and typically reach a peak in the early months of the year. Market time for Happy Valley homes began to decrease in the Spring, and listed homes are now remaining on the market for an average of 118 days – longer than at this same time over the past three years. Based on the predictable cycles in Happy Valley and the Portland metro housing market as a whole, we can expect to see market time continue to drop through the end of Spring and into Summer.

Happy Valley, Oregon Average Days on Market Chart. Courtesy of Fidelity National Title

Happy Valley, Oregon Homes for Sale

Browse all Happy Valley homes for sale using the interactive map on Portlandhomesforsale.com.

Happy Valley, Oregon 2025 Real Estate Forecast

Increasing home inventory in Happy Valley signals that the active selling season is beginning to cool down as the number of new listings rises higher than the number of homes that are selling. Meanwhile a slight increase in prices combined with decreasing market time reveals that buyers are still active. We anticipate that the inventory of listed homes in Happy Valley will continue to grow until the end of Fall and possibly into the Winter, and that prices will either remain high or increase slightly before beginning to drop again toward the end of Spring.

The Happy Valley housing market was impacted by the same factors that suppressed market performance in the entire Portland Metro area in 2023, with its home prices dropping by an average of -2.4% from mid-2022 to mid-2023. Considering the slightly lower mortgage rates available in 2024, we should see the market begin to stabilize throughout the year until gaining strength with a fresh wave of home buyers and rising prices in the Spring of 2025.

We keep looking forward to future federal interest rate drops that have not yet realized themselves. No one is sure that they will occur in 2024, but it seems there is a decent change for that to occur at least in 2025. If that does happen, there is a lot of pent-up demand that will serve the entire metro well, and give Happy Valley a boost. Assuming that is on the way, we forecast Happy Valley, Oregon home prices to increase in 2025 by 3% and recover some of their recent losses.

Ready to Buy or Sell a Home in Happy Valley, Oregon?

Whether you are interested in buying or selling in Happy Valley or anywhere in the Portland metro, you can use our experience to your advantage. We have spent over two decades studying and navigating the greater Portland housing market so you don’t have to. We provide our clients with exceptional service yet charge a lower commission rate than the industry standard. Get started today by calling our top 1% buyer’s and seller’s agents at 503-714-1111 or chatting with the bot on this site. We’d love to put our experience to work for you!

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