Lake Oswego, Oregon Real Estate Market Update and 2025 Forecast
Each month, we highlight the real estate market of one of Portland’s many desirable suburbs in our Portland Suburb Real Estate Market Reports. This time we focus on beautiful Lake Oswego. Located 8 miles south of Portland, it is known for its namesake, Lake Oswego, its surrounding parks, and the endless water activities. The area is also well known for its highly rated public educational system and strong community spirit.
Lake Oswego continues to stand out as one of the most desirable real estate markets in the Portland Metro area. As we close out 2024, this article looks at the current trends shaping its local real estate market and what to expect for 2025.
Lake Oswego, Oregon Inventory Showing Seasonal Decline
According to Fidelity National Title, Lake Oswego’s housing inventory has decreased to 122 listings, following the seasonal pattern of active listings decreasing as of late November. It also aligns with Portland’s overall inventory trends, which also saw declines from October to November, dropping from 1,558 to 1,305 active listings. During this time of year, fewer homes come onto the market.
This time of year benefits buyers thanks to lower inventory. Looking forward, we can predict that the area’s general seasonal trends will hold, with inventory continuing to decline until the spring season.
One difference from Portland over the last few years is year-over-year inventory. Like Portland, Lake Oswego’s inventory has grown over the past three years. Even though Lake Oswego is still a highly desired community, rising inventory levels indicate some slowing demand in the area. We still expect declining mortgage interest rates in the future, which will likely improve results.
Lake Oswego, Oregon Inventory Chart. Courtesy of Fidelity National Title
Lake Oswego, Oregon Real Estate Prices Show Declines
We have learned over the years that the price-per-square-foot is the best guide for understanding home values in and around Portland. This year follows the area’s typical annual trend, lowering pricing before trending upward in spring.
Another difference from some other parts of the greater Portland metro is that Lake Oswego’s real estate prices have lowered slightly over the last two years. No suburb saw big increases or major decreases in the last couple of years, but many did increase slightly. This decrease in Lake Oswego’s prices aligns with the area’s prior years of increasing inventory. The median list price currently stands at $1,695,000, with a price per square foot of $477, vs. $512 in 2023 and $514 in 2022.
Lake Oswego, Oregon Price per Sq. Ft Chart. Courtesy of Fidelity National Title
Though lowering home values may concern some buyers, it also presents an opportunity for buyers who found their ideal homes out of reach. Lake Oswego also stands to benefit in the long run due to past trends of more of Portland’s population moving out of the city and into the suburbs and a high potential of upcoming lower interest rates.
Lake Oswego, Oregon Average Days on the Market
The average days on the market (DOM) in Lake Oswego is 147, which is higher than Portland’s total of 107 days. This isn’t all that surprising because Lake Oswego is a luxury market. Longer market times are common for high-end properties because they require specific buyers, and those buyers typically take more time to make their decisions.
Lake Oswego, Oregon Average Days on the Market Courtesy of Fidelity National Title
For both Lake Oswego and Greater Portland, the market days will increase until the end of February or March when demand increases.
Lake Oswego, Oregon Homes for Sale
Browse all Lake Oswego homes for sale using the interactive map on Portlandhomesforsale.com.
Lake Oswego, Oregon 2025 Real Estate Forecast
Lake Oswego’s real estate market is expected to continue seasonal trends, with inventory declining through winter setting up a hotter spring for sellers.
Unlike many other areas in Portland’s broader market, Lake Oswego has experienced year-over-year inventory growth for three consecutive years and slightly lower home values over the last two years. Both factors suggest declining demand in Lake Oswego (or perhaps for luxury housing in general, since that typifies Lake Oswego housing). While prices have softened slightly compared to 2022 and 2023, the area remains desirable and a change in interest rates is also predicted, which would help against property values and benefit sellers by bringing increasing demand for homes in the area.
We expect Lake Oswego’s real estate market to get hotter in 2025, with a 3% housing price increase, reversing the recent downward trend.
Interested in Selling or Buying a Home in Lake Oswego?
Whether you are looking to buy or sell in Lake Oswego, our expert team of Realtors is ready to help. Contact our top 1% seller’s agents for an optimized marketing strategy for the best possible selling experience. If you plan to move to Lake Oswego, our top 1% buyer’s agents can guide you in your search for the perfect home. Give us a call at 503-714-1111. We’d love to chat!
