Portland Metro Real Estate Market Update – August 2025

The Portland metro real estate market in August 2025 continues to reflect a period of transition. While demand remains steady, the data shows signs of a shifting balance between buyers and sellers. Inventory is rising compared to last year, prices have softened slightly, and homes are staying on the market longer. At the same time, buyers are stepping up, with pending and closed sales showing healthy growth.

For both buyers and sellers, understanding these shifts is key to making confident real estate decisions. Let’s take a deep dive into the latest market data, what it means, and how you can navigate today’s conditions.

August 2025 Market Snapshot

Here’s how the Portland metro real estate market looked in August:

• Inventory in Months: 5 months (↓ 0.2 from July, ↑ 0.5 from August 2024)
• New Listings: 2,476 (↓ 15.5% from July, ↓ 7.2% from last year)
• Active Listings: 7,018 (↓ 6.5% from July, ↑ 20% from last year)
• Average Sale Price: $620,500 (↓ 0.2% from July, flat compared to last year)
• Median Sale Price: $550,000 (↓ 0.9% from July, ↓ 0.9% from last year)
• Pending Sales: 2,275 (↑ 4.5% from July, ↑ 10.9% from last year)
• Closed Sales: 2,021 (↑ 0.8% from July, ↑ 3.3% from last year)
• Total Market Time: 62 days (↑ 10 days from July, ↑ 14 days from last year)

At first glance, these numbers may look like a mixed bag, but they tell a story of a market moving toward balance.

Inventory & Listings: The Supply Side of the Market

Inventory is one of the most important indicators in real estate because it tells us how many months it would take to sell all the homes currently on the market if no new listings were added. A balanced market is typically around 5–6 months of inventory.

• In August, the Portland metro reached 5 months of inventory, up from 4.8 months in July and half a month higher than last year.
• That increase suggests more breathing room for buyers, who for years faced intense competition and bidding wars when inventory was closer to 1–2 months.

However, while total active listings were up 20% compared to last year, new listings fell sharply. Only 2,476 homes came on the market in August — a 15.5% drop from July and 7.2% fewer than last year.

What does this mean? It points to a dynamic where more homes are available overall because they are staying on the market longer, but fewer fresh options are being introduced. Many homeowners are holding onto their properties, possibly reluctant to give up their current low mortgage rates.

For buyers, this creates opportunities to explore more homes, but it also means being flexible as the pool of new listings shrinks. For sellers, more competition among active listings makes pricing and marketing strategies especially important.

Prices: Small Adjustments but Not a Crash

Price movement is always top of mind, and August’s numbers showed stability with a slight cooling trend.

• The average sale price slipped just 0.2% from July to $620,500 and was identical to last year’s figure.
• The median sale price fell to $550,000, a 0.9% decline from both July and last year.

These minor dips suggest that the market isn’t experiencing dramatic drops, but rather a gentle leveling. After several years of fast price appreciation, a plateau is a healthy sign of balance returning to the housing market.

For buyers, this means there may be more room to negotiate without fear of runaway bidding. For sellers, the key takeaway is that pricing realistically is essential. Overpricing a home in today’s environment often results in extended time on the market and eventual reductions.

Buyer Activity: Demand is Still Strong

One of the most encouraging signs for the Portland market is that buyer demand remains healthy.

• Pending sales rose to 2,275 in August, up 4.5% from July and an impressive 10.9% from last year.
• Closed sales also showed strength, with 2,021 homes sold — a slight increase from July and 3.3% higher than August 2024.

This growth indicates that despite affordability challenges, buyers are motivated to move forward. With more inventory to choose from and slightly cooler prices, many buyers see this as an opportunity to make their move.

It’s worth noting that the increase in pending sales suggests momentum heading into fall, traditionally a slightly slower season. This could mean that buyers are taking advantage of current conditions before any potential shifts in interest rates or market dynamics later in the year.

Market Time: Patience is Key

Perhaps the most noticeable change in the August numbers was market time.

• Homes took an average of 62 days to sell, which is 10 days longer than July and 14 days longer than last year.

This increase shows that while homes are selling, they’re not flying off the market like they once did. Buyers are taking their time to compare options, negotiate, and make thoughtful decisions.

For sellers, this means patience is required. Homes that are staged, well-marketed, and priced competitively will still attract strong interest, but sellers should not expect quick offers within days of listing like in past years.

What This Means for Buyers

If you’ve been waiting for the market to tilt more in your favor, now is a good time to step in. Here’s why:

• More choices: Inventory is higher than last year, giving you a wider range of homes to consider.
• Less pressure: With homes taking longer to sell, you have more time to make decisions and negotiate.
• Stable pricing: Prices are holding steady, and slight declines make affordability a bit more manageable.

That said, the best opportunities often come to those who are prepared. Getting pre-approved for a mortgage and working with a knowledgeable REALTOR® can help you move quickly when the right home comes along.

What This Means for Sellers

Selling a home in today’s market is still very possible — and often profitable — but strategy matters more than ever.

• Price competitively: Overpricing can leave your home sitting on the market while others sell.
• Prepare your home: Staging, repairs, and professional photography help your listing stand out.
• Be patient: With average market time at 62 days, understand that offers may take longer to arrive.

Sellers who adapt to current conditions are still seeing strong results. Buyers are active, but they are looking for value, and homes that are well-presented and priced right are the ones receiving attention.

Broader Context: Why the Market Looks This Way

The August 2025 data reflects a mix of factors shaping the Portland metro housing market:

• Mortgage rates remain a key driver of buyer behavior. While not at historic lows, they’ve stabilized enough to keep buyers engaged.
• Economic stability in the Portland area continues to attract new residents, fueling demand.
• Homeowner hesitancy is keeping new listings down, as many sellers are reluctant to give up low mortgage rates secured in past years.

Together, these factors are creating a market where buyers have more negotiating power but sellers are still achieving solid prices.

Key Takeaways

• Inventory is up compared to last year, giving buyers more options.
• Prices have leveled off, showing small declines but overall stability.
• Buyer demand is strong, with pending and closed sales both increasing.
• Market time is lengthening, requiring patience and strategy for sellers.

Summary

The Portland metro real estate market in August 2025 is finding its balance. Prices are steady with minor dips, inventory is higher than a year ago, and buyers are active. While sellers face more competition and longer market times, homes are still selling at strong values.

For buyers, this is an excellent time to take advantage of more choices and less pressure. For sellers, success comes from realistic pricing, preparation, and a willingness to adapt to changing conditions.

As the fall season approaches, the Portland housing market is positioned for steady activity — not the frenzied pace of past years, but a healthier, more sustainable rhythm that benefits both sides of the transaction.