Portland, Oregon Real Estate Market, July 2024 Report

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Home buyer traffic is beginning to taper off and available home inventory is increasing more significantly, shifting market conditions to favor home buyers. Pending sales have increased slightly and prices have continued to remain stable however, leaving room for sellers to benefit from the lingering effects of the Spring selling season. With the expected decrease in buyer traffic and increase in new home inventory over the Summer months, conditions will become increasingly beneficial for interested home buyers.

Below we will explore the individual factors that are currently shaping the housing market in Portland, Oregon.

Portland Home Buyer Traffic is Decreasing

We have seen some slight increases in buyer traffic over the last couple of months followed by decreases as the annual selling season drew to a close. As you can see demonstrated by the graph below from RMLS, overall an increasing number of home buyers became active throughout the year. Currently buyer traffic numbers have decreased by 2.5% compared to mid-June and are now at nearly the same level the market saw in June of 2023. We should see a further decrease in buyer traffic throughout the summer months now that the peak selling season for our local housing market has come to an end.

We have spent over two decades analyzing and interpreting housing market statistics, and one of the most influential factors on the state of the market is the number of buyers who are actively shopping for homes. You can use the chart we created below to see how the current number is affecting the temperature of the real estate market. For the month of June, the level of buyer traffic has remained in the lukewarm range. As buyers continue to withdraw from the market, the temperature will continue to move toward cool status in the coming months.

Oregon weekly home buyer trafficHot or Cold Market?
0 – 5,000Frozen
5,000 – 10,000Cold
10,000 – 15,000Cool
15,000 – 20,000Lukewarm (Currently)
20,000 – 25,000Warm
25,000 +Hot

Portland Real Estate Inventory is Increasing

The number of homes available on the market is continuing to grow, which is expected once the peak selling season for the Portland market comes to a close at the end of Spring. As demonstrated by the chart below, the inventory of listed homes in our local real estate market follows a seasonal pattern, steadily increasing through the summer months before peaking in the Fall. Inventory is currently at its highest level compared to the same time period in recent years and is contributing to the real estate market “cooling down” overall. We created the second chart below to illustrate how inventory numbers affect the state of the housing market, and as you can see, the current level of inventory is rapidly approaching cold market conditions. We expect to see inventory continue rising into the Fall.

Inventory as of June 30, 2024. Above chart courtesy of Fidelity National Title.
Portland inventory rankingHot or Cold Market?
0 – 500On Fire (notice April of 2022)
500 – 750Hot
750 – 1,000Warm
1,000 – 1,250Lukewarm
1,250 – 1,500Cool (Currently)
1,500 – 1,750Cold
1,750 – 2,000 +Frozen (last Oct. – Dec.)

As we move away from the peak selling season of Spring and into the Summer, there are fewer active home buyers to compete for available homes on the market. If you are considering buying a home, this is a good time to begin your search as the number of new listings continues to increase and a lack of competition drives prices down.

The Number of Homes with Price Drops is Starting to Increase

Percentage of Listings with a Price Decrease as of June 30, 2024. Chart courtesy of Fidelity National Title.

As we predicted last month, the number of homes on the market that have had to drop in price has begun to increase after remaining fairly consistent through Spring. The combined factors of a decrease in interested home buyers and continually increasing home inventory are leading sellers to start lowering their prices in order to appeal to buyers. Currently, 43% of listed homes are now undergoing price drops. As you can see on the chart above, the consistent annual trend is for this percentage to continue to increase through the end of the year. We expect that this year will be no exception, with a growing percentage of price drops in July that continues to increase through the month of December.

Average Prices are Stable

Price per sq. ft. as of June 30, 2024. Chart courtesy of Fidelity National Title.

Average home prices, calculated by price per square foot, have remained relatively constant since the beginning of March. As shown on the chart above, home prices remain higher than in 2023 but are slightly lower than the peak in market prices we saw in 2022. With less competition from fewer interested buyers leading to increasing price drops, we anticipate a decrease in average prices in the very near future.

New Listings and Pending Sales Increased in May

The number of new home listings on the market continued to increase in May at a rate similar to the previous two years. Just as in April, the current level of home inventory remains halfway between numbers for 2022 and 2023, as demonstrated on the graph from RMLS above. Due to the predictable seasonal nature of the Portland housing market, we can expect that new listings will continue to rise through the month of June and overall home inventory will continue to grow throughout the rest of the year.

Pending sales rose only slightly in May to match the level of sales in 2023, yet the trajectory of sales for the year remains far below that of 2022. Because our local housing market has reached its annual peak in sales for the year, we anticipate that sales will begin to drop off through the Summer months.

We saw the impacts of high interest rates and inflation on the Portland housing market in 2023, and both factors continued to influence the performance of the real estate market in 2024. For more insight into how these variables have contributed to the state of the market this year, check out our 2024 forecast.

Advice for Sellers

We always advise our clients that Spring is the best time to sell a home in the Portland real estate market. With our peak selling season coming to an end, there are lingering opportunities for sellers to list their homes to be visible to interested buyers still shopping for a new home. With the number of buyers slowly dwindling, the window of opportunity is small, so if you are not ready to list right away we would encourage you to wait for more favorable conditions in the Spring of next year.

Conditions are Favoring Home Buyers

The decreasing number of active home buyers on the market combined with steadily increasing home inventory is creating beneficial conditions for buyers. Now and in the coming months, less competition for available homes will lead to more affordable prices and greater choice. This is a great time to begin looking for a new home and to watch for new property listings in your desired Portland neighborhood. We recommend that clients utilize PortlandHomesForSale.com in their home search to take advantage of its unique search features and customized filters, such as “biggest price drop in the last 7 days“.

Put Experience on Your Side

We have 20+ years of experience assisting buyers and sellers in the Portland metro area, so you are in expert hands whether you are ready to buy or sell. Our top buyer’s or seller’s teams are ready to help you every step of the way. Give us a call today at 503-714-1111 or chat with the bot on this site and put our knowledge of the Portland real estate market to work for you. We’d love to be a part of your team.

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