Is Now a Good Time to Buy a Home in Portland? 2025 Market Update
Is now a good time to buy a home in Portland?
Yes, 2025 is shaping up to be a promising year to buy a home in Portland! Mortgage rates, housing supply, and local demand all play a role in timing your purchase. But ultimately the right decision depends on your budget, goals, and neighborhood preferences.
The 2025 Portland Housing Market at a Glance
If you’re considering buying a home in Portland this year, you’re not alone. The Portland housing market has shifted significantly since the highs of 2021–2022, and buyers in 2025 are seeing a very different landscape. With interest rates stabilizing and more homes coming on the market, you may find better opportunities to enter the market than in recent years.
Key Trends in Portland’s 2025 Housing Market
1. Mortgage Rates Are More Stable
After several years of dramatic increases, mortgage rates in early 2025 have settled into a more predictable range. And in September of 2025, rates hit nearly a three-year low with a 30-year fixed rate mortgage dropping to 6.13%! (Mortgage News Daily) While still higher than the historically low rates of 2020, this stability allows buyers to plan with more confidence.
2. Home Prices Show Signs of Moderation
According to data from the Regional Multiple Listing Service (RMLS), the median home price in Portland has leveled off compared to last year (2024). While certain neighborhoods like Sellwood and Laurelhurst remain competitive, others such as Lents, Montavilla, and outer Northeast Portland are offering more affordable entry points for first-time buyers.
3. More Homes on the Market
Inventory levels have improved slightly, giving buyers more options. In 2024, Portland often had fewer than two months of supply, but 2025 started closer to three months of supply. This shift makes it easier for buyers to find a property without competing against as many offers.
Why Location Still Matters in Portland
When you buy a home in Portland, your experience will vary depending on the neighborhood. Inner Northeast and Southeast still see fast-moving listings, especially close to Alberta, Division, and Hawthorne. In contrast, suburbs like Milwaukie, Beaverton, and Gresham may offer more space at a lower price point.
Median Home Prices by Area (2025 Snapshot)
Sellwood-Moreland: $725,000
Laurelhurst: $950,000
Montavilla: $525,000
Lents: $450,000
Beaverton: $575,000
Milwaukie: $600,000
Should You Buy a Home in Portland Now?
Benefits of Buying in 2025
More inventory compared to past years means less competition
Moderated home prices in several neighborhoods
Stable mortgage rates making budgeting easier
Potential for long-term equity growth in a desirable city
Challenges to Consider
Rates remain higher than pre-2020 levels
Competition is still strong in the most desirable neighborhoods
Some buyers may face affordability challenges depending on income and savings
Bridge to Portland Group’s Local Insight
At the Bridge to Portland Group, we work closely with buyers across the city and surrounding communities. Whether you’re looking at a bungalow in Sellwood, a townhouse in Hillsboro’s Reed’s Crossing, or a larger lot in Oregon City, our team has firsthand experience navigating today’s market. We’ve helped clients succeed in both fast-paced bidding situations and quieter suburban searches.
Final Thoughts: Making Your Move in 2025
So, is now a good time to buy a home in Portland? The answer depends on your financial readiness and lifestyle goals. If you’re prepared to buy, the combination of increased inventory and price stability could make 2025 a smart entry point. But every buyer’s situation is unique, which is why having trusted local guidance is essential.
Contact the Bridge to Portland Group today to start a conversation about your home search. We’ll help you evaluate neighborhoods, connect you with trusted lenders, and guide you through the process from start to finish.
