Portland, Oregon Real Estate Market, March 2024 Report
The number of active home buyers on the market has increased significantly since our last Feb. report, while home inventory has dropped further and prices have begun to rise more steadily. Conditions are right for sellers to benefit from these factors that will likely only improve as we head into Spring, when the Portland housing market reaches its peak for home sellers each year. Interested home buyers should act quickly before the market shifts to fully favor sellers in the coming months (or wait until things start to swing back in their direction (by August or July). In this article we’ll break down the most important factors that are determining the current state of our local Portland real estate market.
Portland Home Buyer Traffic is Picking up
Prospective home buyer traffic has increased significantly since our last monthly report, signifying that the market is gaining momentum toward a productive Spring selling season. Every year as we move closer to the end of the colder months, our local real estate market begins to shift to favor sellers as more buyers start actively searching for homes. As shown on the graph from RMLS below, buyer traffic numbers have increased by over 5,000 since January and we expect numbers to keep rising as Spring approaches.
Buyer traffic is one of the most important indicators of the state of the housing market. In the chart below, we have translated our decades of experience working in Portland real estate to explain how these numbers impact buying and selling in our area. Last month’s lower numbers reflected a cold market, but in February a much higher number of active buyers shifted the housing market to lukewarm status. Based on the seasonal cycles of our local market, we should see the number of active buyers only continue to increase in the months ahead.
| Oregon weekly home buyer traffic | Hot or Cold Market? |
| 0 – 5,000 | Frozen |
| 5,000 – 10,000 | Cold |
| 10,000 – 15,000 | Cool |
| 15,000 – 20,000 | Lukewarm (Currently) |
| 20,000 – 25,000 | Warm |
| 25,000 + | Hot |
Portland Real Estate Inventory Continues to Decrease
The steady decrease in available home inventory we’ve seen this winter is consistent with the seasonal trends of the Portland real estate market. As you can see on the Fidelity chart below, over the past three years inventory declined during the cold months, then began climbing once again with the onset of Spring. The current low number of available homes has created the conditions for a hot market, as you can see highlighted on our chart below. We can expect further decreases in inventory until more new homes are added to the market in the Spring.
| Portland inventory ranking | Hot or Cold Market? |
| 0 – 500 | On Fire (notice April of 2022) |
| 500 – 750 | Hot (Currently) |
| 750 – 1,000 | Warm |
| 1,000 – 1,250 | Lukewarm |
| 1,250 – 1,500 | Cool |
| 1,500 – 1,750 | Cold |
| 1,750 – 2,000 + | Frozen (last Oct. – Dec.) |
The low number of homes that are currently available on the market combined with a higher number of home shoppers creates beneficial conditions for sellers. Each year in the Portland metro area, we anticipate the ideal market conditions that come with the spring season and result in the highest volume of home sales annually. Our current low inventory and high buyer competition – factors that contribute to a productive selling season – are showing promise for a hot seller’s market this Spring. If you are planning to sell your home this year, now is the perfect time to list your home on the market.
Fewer Homes are Experiencing Price Drops
The number of homes on the market that have had to undergo price drops has been steadily decreasing since December along with the decline in inventory. Roughly 35% of listed homes experienced price decreases in February, versus 41% in our last monthly report. Due to the Portland real estate market’s consistent seasonal cycles, we can predict that there will continue to be fewer and fewer price drops throughout the winter and into the spring months, when buyer competition will lead to price increases.
Average Prices are on the Rise
In January, home prices (calculated by price per square ft.) began rising after a long period of slowly decreasing prices, and continued to rise more significantly in the month of February. Low market inventory and increased buyer traffic are currently creating more competition for available homes, which drives prices upward. Because we anticipate a higher number of active home buyers in tandem with an influx of new home listings in the Spring, we can expect prices to continue to rise through the Spring season.
New Listings and Pending Sales Increased in January
In January, the number of new listings on the market increased to match the number we saw at the beginning of 2023, as you can see on the graph from RMLS above. With the growing number of listings that typically coincide with the approach of Spring, we expect to see the number of new listings continue to increase as we move away from the winter months and into Spring.
Pending sales also increased in January, but to a number somewhat below the level of sales during the same month in 2023. Our local housing market gains momentum in the early months of each year leading up to the hot seller’s market in Spring, which translates to rising sales we can anticipate as we draw nearer to the spring season.
Last year’s real estate market was suppressed by the ongoing factors of high interest rates and inflation both locally and nationwide. To gain a clear picture of of how these will continue to impact the Portland housing market, check out our 2024 forecast.
The Best Time of Year to Sell Your Home
We have dedicated the past 20+ years to providing the best experience for sellers and studying the behavior of our local real estate market. Based on our thorough knowledge of the annual cycles of the Portland housing market, right now is the best time of the year to list your home on the market. We would advise putting your home on the market as soon as possible – ideally in March or by the month of May – to take advantage of the most beneficial conditions for sellers. Buyer traffic is always highest early in the Spring and inventory is often still low, giving sellers the benefit of exposure and higher sale prices.
Timing for Home Buyers
The recent jump in buyer traffic and low level of available inventory means home buyers will experience somewhat more competition in their search for a new home. But while prices are rising, they likely have not yet hit their peak for the year, which means buyers may still find deals on the current market. A good place to begin your search is PortlandHomesForSale.com, which offers a comprehensive set of specific search features to help you find just the right property. For example, you can narrow your search to your favorite Portland neighborhood or take advantage of unique custom filters, such as “biggest price drop in the last 7 days“.
Work with the Top Portland Real Estate Team
With over twenty years of experience supporting buyers and sellers in the Portland area plus our in-depth knowledge of our local real estate market, our team will provide you with top-notch customer service whether you are ready to buy or sell. To reach our top 1% home buyer’s and seller’s teams, call 503-714-1111 or chat with the bot on our site. We’d love to get started today!
