Portland, Oregon Real Estate Market, June 2024 Report

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A considerable drop in home buyer traffic combined with a significant increase in available home inventory have begun to cool down the Portland housing market. However, there was a modest increase in pending sales while prices remained stable, signifying that the market retains some strength. The time for sellers to list their homes is now, while conditions are likely the most favorable they will be for the remainder of the year. Market conditions are shifting to favor buyers more over the coming weeks as new homes continue to be added to the market and competition continues to dissipate.

Let’s take a look at the figures and statistics that are currently shaping the housing market in Portland, Oregon.

Portland Home Buyer Traffic Numbers are Starting to Drop

Buyer traffic picked up during the month of May after a slight decrease in April, and then proceeded to drop significantly at the end of the month. On average, an increasing number of buyers entered the market throughout the year, following the regular seasonal pattern of the Portland housing market – which reaches its height of productivity during the Spring months. As you can see on the graph from RMLS below, traffic has now decreased to a level comparable to last year at this time. As Spring draws to a close, we expect to see a further decrease in active buyers in the coming weeks and months.

We constantly review and analyze real-time real estate data, and buyer traffic numbers are one of the most revealing metrics we use to determine the temperature of the housing market. We created the chart below to help clarify how these traffic numbers translate to the state of the market. As you can see by comparing the numbers above to our chart below, the first half of May saw a slight increase in buyer traffic, energizing the market to a warm state. By the end of the month the number of active home buyers had dropped substantially, slowing the market to lukewarm status.

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 Continues to Increase

The available inventory of homes on the Portland market has been rising since March, the time of year when sellers in our area are typically motivated to list their homes on the market. Inventory tends to keep increasing through the end of the Fall season, as you can see clearly illustrated over the last several years on the chart from Fidelity below. The current growing level of inventory has created cooler market conditions, as shown by our chart underneath that translates how these numbers affect the real estate market. The number of listed homes on the market will likely continue to increase throughout the Summer months and well into the Fall season.

Inventory as of May 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.)

Each year the Spring season is the hottest time of year in our local real estate market, bringing a wave of interested buyers and the resulting competition that profits sellers. Now would still be a good time to list your home to be visible to the interested buyers who are still searching, but with inventory steadily rising it is important to act fast.

The Number of Homes with Price Drops remains Consistent

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

The percentage of homes on the market that have dropped in price has remained relatively unchanged for the last couple of months, rising by less than a percentage point in May over the 33% we saw in April. This price stability points to continued buyer competition for the moderate level of available homes on the market. However, the recent drop in home buyer traffic and ever-increasing inventory of listed homes are contributing to cooler market conditions that will cause sellers to compete for a more limited number of buyers by decreasing their prices. With these factors in mind, we should see an increase in the percentage of homes with price drops in the near future.

Average Prices are Leveling Out

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

We use price per square foot as the most accurate measure of real estate prices, and they have remained constant with little fluctuation since the beginning of March. As the chart above reveals, average prices were higher in 2024 than the previous year but significantly lower during the same time period in 2022. With buyer traffic dwindling and the inventory of available homes steadily increasing, average prices for homes on the market will likely begin to lower in the coming weeks.

Both New Listings and Pending Sales Have Increased

The quantity of newly listed homes available on the market increased at a more significant rate from March to April than in both 2022 and 2023, as you can see on the graph from RMLS above. Inventory has currently risen to a level that is halfway between figures for the previous two years. Because the Portland real estate market operates on a seasonal cycle, we can predict that the inventory of available homes will continue to rise through the Summer and Fall seasons.

The number of pending sales in April were ultimately slightly higher than in 2023, but significantly below those in April of 2022. Our local housing market typically reaches a peak in home sales during the Spring season, and this year is shaping up to be no different. With the approach of Summer, we expect home sales to begin to taper off over the next month or two.

High interest rates and inflation negatively impacted the performance of the real estate market as a whole in 2023, and both have continued to influence the Portland housing market in 2024. To gain a greater understanding of how these factors are shaping market outcomes, read our 2024 forecast.

When to Sell Your Home

The yearly Spring seller’s market, when market conditions align to favor sellers, will soon be drawing to a close. But if you are prepared to list your home, you can still benefit from a higher number of active buyers and lower number of listed homes on the market than we will see for the rest of 2024. We would advise sellers to list their homes right away or wait for more opportune conditions that will come with the Spring of 2025.

Opportunities for Home Buyers

As fewer buyers actively search for homes and the inventory of available homes steadily increases, market conditions are shifting to favor home buyers in the coming months. Now is a great time to start searching for your ideal home or next property and to look for deals in desirable Portland neighborhoods. We recommend the home search platform PortlandHomesForSale.com for its comprehensive search features that include customized filters (i.e., “biggest price drop in the last 7 days“).

Choose an Experienced Realtor

As experienced Realtors with 20+ years of experience working in the Portland metro area, we have insight into the behavior of our local housing market that will work to your benefit whether you are interested in buying or selling. Our top 1% buyer’s and seller’s teams have the knowledge and experience to help you navigate the Portland housing market with ease. If you want to enjoy the best possible experience buying or selling your home, give our team a call today at 503-714-1111 or chat with the bot on this site. We want to be a part of your success story.

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