Forest Grove, Oregon Real Estate Market Update and 2026 Forecast

Our monthly Portland suburb real estate market reports help local buyers and sellers better understand specific areas in and around Portland so that they can make informed decisions. This month, we’re returning to Forest Grove, a picturesque city about 27 miles west of Portland in Washington County. With a population of just over 26,000, Forest Grove is renowned for its easy access to the Willamette Valley wine country and its proximity to both the coast and the city. It is home to Pacific University and 357 acres of scenic parkland featuring trails for hiking, walking, and biking. Forest Grove has a strong sense of community and is known as a desirable place to call home.

The city also has some fun traits. In addition to being a home for wine, Forest Grove also has a saké brewery, SakéOne. It is also the location of the world’s tallest barber shop pole, at 72 feet tall!

Let’s take a closer look at the Forest Grove real estate market and what the latest numbers suggest about where things may be heading. 

Forest Grove, Oregon Housing Inventory is Higher Than Recent Years

The latest data from Fidelity shows that housing inventory has risen steadily over the last few months, reaching 85 active listings as of July 11, 2025. That’s up from 75 in June and 67 in May, showing a consistent month-over-month increase during the early summer months. Compared to previous years, the current level marks a jump. Just 49 homes were on the market this time last year, and inventory hovered in the mid-40s in both 2022 and 2023.

Forest Grove, Oregon Inventory Chart. Courtesy of Fidelity National Title

The elevated inventory follows the broader Portland-area trend this year of longer market times. Following the spring season, a time typically seen as the busiest time for home sales, the seasonal increases in listings are expected during summer, the size of the increases this year is a sign of a softer market with homes lingering longer and sellers facing stronger competition. The higher inventory is good news for buyers, especially in the second half of the year when buyer traffic tends to decline. If inventory continues to rise or hold steady into fall, sellers may need to price competitively and expect longer listing periods.

As for longer predictions, the Portland metro typically adheres to seasonal trends, so we should see inventory rise in Forest Grove until October or November, favoring buyers, and then dip again through early 2026.

Forest Grove, Oregon Real Estate Prices are Holding Relatively Steady

As of July 11, 2025, the average home price in Forest Grove is $280 per square foot, holding relatively steady compared to $283 in June and $280 in May. While this reflects a slight dip from $295 last year, it is still an increase over $261 in 2023 and $275 in 2022.

Forest Grove, Oregon Price Per Square Foot Chart. Courtesy of Fidelity National Title

Forest Grove’s pricing trends are in alignment with those of the broader Portland metro area, down slightly year over year but up from two years ago. The recent price flattening following a rise earlier in the year also reflects seasonal trends across the region. With more inventory on the market and buyers showing greater caution, prices are likely to remain stable through the summer, with potential for minor shifts depending on how demand holds up into fall.

Moving forward, we should see a price dip from July through January of 2026, and then prices level out or increase starting in February of 2026. 

Forest Grove, Oregon Average Days on the Market is High and Expected to Rise

As of July 11, 2025, the average days on market (DOM) in Forest Grove stands at 77 days, up slightly from 75 days in June, but down from a springtime high of 91 days in May. Compared to previous years, this number remains high—homes averaged 88 days on market in July 2024, 66 days in 2023, and just 45 days in 2022 at the same time of year.

Forest Grove, Oregon Average Days on the Market Chart. Courtesy of Fidelity National Title

This longer time on market reflects both higher inventory levels and cautious buyer behavior. While the pace has improved slightly since spring, we expect average market times to rise again through the remainder of 2025 and into early 2026. 

Forest Grove, Oregon Homes for Sale

Browse all Forest Grove homes for sale using the interactive map on Portlandhomesforsale.com.

Forest Grove, Oregon 2025 and 2026 Real Estate Forecast

Looking ahead, Forest Grove’s market is likely to follow the familiar pattern of activity slowing further in the second half of 2025, a benefit for buyers. Based on past years, we expect average days on market to rise through the end of the year and into early 2026. Inventory levels may remain elevated, especially if fewer buyers are motivated to act during fall and winter. Homeowners who list during this time may need to price competitively to attract offers.

Despite the slower season, Forest Grove is showing resilience. While price per square foot is down slightly compared to 2024, it remains higher than in 2023 and 2022 — a sign of stability. If interest rates drop or stabilize, buyer activity may increase again in spring 2026, potentially leading to a tighter inventory and modest price growth. Using past trends as a guide, we anticipate a typical spring rebound, followed by another seasonal cooling next fall. But as always, interest rates will have the greatest effect on things. We predict a 1% increase in housing prices in Forest Grove in 2026, unless rates drop in a meaningful fashion, then the rate of increase could be much higher due to pent up home buyer demand.

Ready to Buy or Sell a Home in Forest Grove, Oregon?

Whether you are looking to buy or sell a home in Forest Grove, our buyer’s and seller’s agents would love to be a part of your success story. Our experienced top 1% buyer’s agents are experts at negotiating on behalf of our clients. And our top 1% seller’s agents will employ our optimized marketing strategy to give your home the most exposure for the fastest, most rewarding selling experience (not to mention we charge less than most). We have tons of sales experience with over 2,000 homes sold. Give us a call at 503-714-1111 or chat with the bot on this site. We’d love to connect today!