Oregon City, OR Real Estate Market Report with 2024 Forecast

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Each month we profile the real estate market of one of Portland’s many unique suburbs and share an overview of its current market conditions. Check out our Portland Suburb Real Estate Market Reports to discover the other suburbs we have covered. To learn more about real estate activity throughout the entire Portland metro area, read our 2024 Portland real estate forecast or read our latest monthly report for the Portland real estate metro.

This month we’re highlighting the suburb of Oregon City, located 13 miles south of downtown Portland within Clackamas County. Recognized as the first incorporated city in the western United States, Oregon City has a lot to offer its residents. Located along the Willamette River and with 26 parks and over 250 acres of grounds within the city limits, living in Oregon City provides plenty of opportunities to enjoy the outdoors. One highlight to not miss is Willamette Falls.

Oregon City has its own unique selection of restaurants, cafés and coffee shops to choose from, such as the local bakery Fat Cupcake. Like most Oregon towns, it is home to a number of local breweries, including Oregon City Brewery, Arch Bridge Taphouse, and a McMenamins. No matter what you may be looking for, there are plenty of dining options to choose from.

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

Oregon City Housing Inventory is Decreasing

The inventory of available homes on the market in Oregon City has been steadily declining since its peak in November of 2023. This drop in inventory throughout the winter season is typical in Oregon City as you can see demonstrated over the last several years on the chart below. There are a number of factors that lead to a drop in home inventory toward the end of the year, such as sellers removing their homes from the market during the holidays and continued sales of the remaining homes. We can reasonably expect numbers to continue to decrease through the beginning of Spring, before sellers begin to list their homes in larger numbers.

Oregon City, Oregon Inventory Chart. Courtesy of Fidelity National Title

Oregon City Real Estate Prices are Increasing Slightly

Home prices in Oregon City began increasing at the beginning of the year following a short period of decline that began in September of 2023. We usually expect to see a gradual increase in prices after the holiday season until we reach Spring – and the annual peak in home sales across the Portland metro area real estate market that follows. As you can see on the Fidelity chart below, last year was an anomaly, and rather than following this pattern, real estate prices (calculated by price per square foot) instead peaked in February and decreased thereafter until resuming a slight increase in June.

With few exceptions, much of the Portland metro area experienced a drop in home prices in 2023. Compared to the year before, the price of homes in Oregon City decreased by an average of -2.1% last year. Nevertheless, based on the seasonal cycles of the metro area housing market as a whole, we can expect prices to continue to rise in Oregon City through the start of the spring season.

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

Oregon City Average Days on the Market

Listed homes in Oregon City have been sitting on the market for an increasing length of time since August and have now reached an average of 139 days. As demonstrated on the chart below, homes in Oregon City (as well as the rest of the Portland metro) tend to stay on the market longer beginning in the Fall and throughout the Winter months. We expect the number of days for listed homes in Oregon City to decrease in Spring, when more buyers typically enter the market and demand increases.

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

Oregon City, Oregon Homes for Sale

Browse all Oregon City homes for sale using the interactive map on Portlandhomesforsale.com.

Oregon City, Oregon 2024 Real Estate Forecast

Low housing inventory and increasing prices in Oregon City indicate that homes are selling, but the lengthy market times reveal that there are currently few active buyers. We expect this to flip shortly as we enter March – May, a season defined by lower inventory and increased buyer activity.

From mid-2022 to mid-2023, homes on the market in Oregon City underwent an average price decrease of 0.6%. Many areas of the Portland metro experienced similar price decreases in the same time period as a result of high mortgage rates and ongoing inflation. We expect to see similar market performance in Oregon City in 2024 with the continued influence of high (though slightly lower) mortgage rates, along with the reliable seasonal cycles of our local real estate market. Home prices should continue to rise through the Spring (unlike in 2023) and reach their peak before starting to decline in the Summer of 2024. We forecast Oregon City, OR home prices to increase 3% by the end of 2024.

Want to Buy or Sell a Home in Oregon City, Oregon?

Whether you are in the market to buy or sell a home in Oregon City, reach out to our top 1% buyer’s and seller’s agents. With 20 years of experience, we provide our clients with top-notch service while charging a lower-than-average commission rate. Let us utilize our expertise to negotiate with sellers on your behalf or employ our optimized online marketing strategy to market your home. For the best experience selling or buying a home, chat with the bot on this site or give us a call at 503-714-1111. We’d love to get started today!

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