Portland Real Estate Market Update – July 2025

Each month, we analyze housing data from the Portland metro area to see how the market is shaping up. This month, we’re seeing changes in what buyers and sellers can expect. Though buyer traffic remains strong, even increasing from last month, sales aren’t keeping up. With more listings staying active longer and price reductions on the rise, we can see that many buyers are holding off or negotiating more aggressively. Inventory is higher than normal for this time of year, and while pricing is relatively stable, the market is tilting toward buyers.

Let’s take a closer look at the latest trends and how they compare to recent months and years.

2025 Buyer Traffic Trends Remain Stronger Than Recent Years

Let’s look at the most recent data from SentriLock ending May 31st, 2025

May Buyer Traffic Trends Ending May 31st, 2025

According to SentriLock Lockbox data ending May 31st, we saw a repeat of the trend of increased traffic month over month since March. While April was the highest in the last three years, May has gone even further, surpassing totals from 2022. The growth trends are noteworthy due to the absence of lower interest rates. It also shows resilient home buyer desire, but not demand to purchase. So if rates or prices drop, buyers are ready.

Year-over-Year Buyer Traffic Totals – May

Portland Monthly Buyer Traffic Temperature

May 2025’s total places the market rose even further into the “Warm” range base. 

Monthly Buyer Traffic Temperature Ranges

Daily Buyer Traffic

Drilling down tighter into the most recent days gives us a general sense of the temperature of things, including upward trends. We need to remember that the busiest market days are Friday through Sunday; however, we take this into account in our analysis. (All weekend days are bolded.)

The final 12 days of May 2025 show a significant uptick in activity as the month came to a close. While weekend showings grew each day proceeding the Memorial Day weekend, and after a slow start following the weekend, continued to grow again to prior totals, finishing particularly strong at 3,033 at the end of May, which is even high for a weekend total and nearly 500 higher over the last few days of May than last year. We are likely to see higher numbers into June as well, though trends show totals more or less leveling out as we head further into June. 

Daily Showings: May 20–May 31, 2025

Inventory Levels Rise and Signal a Buyer’s Market

Inventory in Portland continues to rise, with levels now higher than those of any of the past three years at this time of year and an overall trend of growth since 2021. The most recent count shows 1,701 active listings, up from 1,575 the prior month. This marks the third consecutive month of rising inventory, suggesting that supply is starting to outpace demand.

Inventory data courtesy of Fidelity National Title.

Since we are in a busy buying season, the higher inventory is a sign of an overall softening in terms of buying compared to the same period last year. It is also a sign that the rest of the year favors buyers. As more homes stay on the market longer and the regular trend of inventory increasing into October, sellers will likely need to compete more aggressively to attract attention.

Average Home Prices Remain Flat

The average home price in Portland is most accurately represented by price-per-square-foot data.  According to the latest data, the average cost is $316 per square foot, a slight decrease from $317 in the prior month. This mild decrease follows typical seasonal patterns as we move into the summer months.

Price-per-square-foot data courtesy of Fidelity National Title.

Compared to this time last year, when the average price was $325, prices are slightly lower, which is likely due to higher inventory levels. However, they remain slightly higher than both 2022 ($317) and 2023 ($315).

Price Reductions Are Rising Sharply

Price reductions have continued to rise steadily over the past three months, reaching 44.15% of listings at the latest update. This is the highest early summer reduction since 2021, and notably higher than both last year.

Price reduction data courtesy of Fidelity National Title.

The pattern confirms that, overall, sellers are having to adjust their pricing more frequently to attract offers, this year in particular due to the higher inventory levels. This blend of elevated inventory and cooling buyer urgency suggests that the market will be a benefit for buyers, with sellers needing to remain responsive to avoid prolonged market time.

New Listings and Pending Sales Show Signs of Cooling

As of the latest RMLS data from May, new listing activity began to taper. When looking at historical data for pending sales, we can expect them to slow as well. After a stronger spring start, the momentum eased—a pattern that aligns with Portland’s softer April and supports the broader forecast of a cooler second half of the year.

While pending sales have remained relatively steady so far, the rising inventory and increase in price reductions suggest that fewer listings are going under contract quickly. Unless there’s a significant shift in interest rates or buyer motivation, we may see both new listings and pendings flatten out or decline further as summer progresses.

Advice for Buyers and Sellers

With inventory remaining high and buyer traffic softening slightly, sellers should prepare for longer market times and consider pricing competitively to attract attention. The recent rise in price reductions reflects a more cautious buyer pool, and sellers who adjust early may fare better than those who hold out. The increase in reductions suggests that strategic pricing is essential.

For buyers, the market offers stronger negotiating power than we’ve seen in past summers. With inventory up and homes staying on the market longer, there’s more time to explore options and less pressure to rush. This time of year presents the best opportunities for finding homes, but overall, 2025 is shaping up to be a buyer’s market.  If interest rates fall this summer, we may see a quick rebound in buyer activity, leading to fewer price reductions. 

July 2025 Real Estate Forecast

Looking ahead, we expect buyer-favorable conditions to continue into July and beyond. This year’s unusual trend — where March outperformed April in seller activity — has historically signaled a softer trajectory for the rest of the year, and this is proving to be true. While May showed strength in buyer traffic, that momentum typically doesn’t continue through summer. If inventory keeps climbing and price reductions continue rising.

Unless interest rates fall meaningfully, buyer urgency is likely to remain tempered. Sellers may continue adjusting prices to stay competitive, which could gradually ease average pricing in the months ahead. Overall, we anticipate a cooler summer market than in recent years, with increased opportunity for buyers and a need for strategic pricing from sellers.

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