As we reflect on 2024 and gear up for 2025, it’s clear the housing market is offering opportunities for both buyers and sellers. Let’s dive into a quick recap of the past year and what the experts are forecasting for the year ahead.
2024 in Review: A Steady Year
The Portland Metro housing market remained stable in 2024, with consistent growth and balanced conditions. Here’s what stood out:
• Prices: The average sale price increased by 2.1%, reaching $611,600, while the median sale price rose 2.3% to $545,000. These gains reflect steady, reliable growth—nothing extreme, but a solid foundation for homeowners.
• Inventory: Inventory rose to 3.0 months, providing more balance in the market. Buyers had more options, and sellers still benefited from a relatively strong market.
• Sales Activity: Pending and closed sales both grew by 2.9% year-to-date, demonstrating consistent demand despite fewer new listings (-0.5%).
• Market Time: Homes stayed on the market a bit longer, with an average time of 64 days. This allowed buyers more breathing room while still enabling sellers to close successfully.
While 2024 didn’t bring dramatic shifts, it laid the groundwork for sustained growth, offering a dependable market for homeowners and buyers alike.
What to Expect in 2025
Looking ahead, experts are predicting a stable market with steady, manageable growth. Here’s what you can expect:
• Sales Growth: Existing home sales are projected to grow by an average of 5.25%, signaling a stable and upward trend.
• Price Growth: Analysts forecast price increases of 1.5% to 4.9%, reflecting a healthy pace that supports both buyers and sellers.
• Inventory: Inventory levels are expected to rise by 11-13%, giving buyers more options and creating a more balanced market overall.
• Mortgage Rates: Rates will likely hover between 5.9% and 6.5%, with some potential for gradual declines. This stability offers buyers and sellers a solid foundation for decision-making.
Key Inflection Points to Watch
While the forecast is optimistic, several factors could shift the market:
1. Mortgage Rates: A significant increase could cool demand, while a sharp drop could intensify competition.
2. Unemployment: A rise in unemployment could dampen buyer confidence and soften prices.
3. Inventory Surges: A sudden influx of listings could put downward pressure on prices, especially in more competitive areas.
If these variables stay within expected ranges, we can anticipate steady, healthy growth throughout 2025—a market that rewards strategic planning and preparation.
How We Can Help You Make the Most of 2025
Whether you’re planning to move or simply looking to optimize your home’s value, we’re here to help you navigate the market with confidence. Here’s what we can offer:
• Equity Review: Get a clear picture of your home’s current value, equity, and selling timeline.
• Remodel Advice: Considering updates? We’ll help you identify the projects that add the most value without unnecessary expense.
• HELOC Guidance: Tap into your home’s value wisely with expert guidance on the best strategies.
• Decorating Discounts: Refresh your space and save! Courtney can help you get 20% off at Pottery Barn, West Elm, Crate & Barrel, and more. Reach out to unlock these savings.
• Trusted Vendors: From contractors to plumbers, we’ll connect you with our trusted network of professionals to handle projects big and small.
• Local Market Insights: Stay informed with hyper-local updates tailored to your neighborhood.
This is your year to take charge, whether it’s buying, selling, or maximizing your home’s potential. Let’s make a plan to help you achieve your real estate goals in 2025. Reach out today to get started!
Sources
- RMLS Portland Metro Market Action Report (November 2024)
- National Association of Realtors (NAR) Quarterly Housing Market Outlook
- Realtor.com Housing Market Forecast
- Wells Fargo Housing Market Predictions
- Zillow 2025 Home Value Forecast
- Bam Media - 2025 Housing Forecast
- Freddie Mac and Fannie Mae Mortgage Rate Predictions
