It may be Aug-tober outside, but the Portland metro area real estate market already seems to be in full-on winter hibernation mode.
Just about every metric trended down in September 2022, according to newly released data from the Realtor Multiple Listing Service—there are fewer homes that are new to the market, fewer pending sales, and fewer closed sales that there were in August and by this point in 2021.
There are only two metrics that are still trending up. Homes are sitting longer on the market before selling, meaning that there are more houses to buy right now than at any point since before the pandemic. And the median sale price of all Portland-area homes is up 8.9 percent from September 2021, to $550,000—but is showing signs of leveling off or falling, particularly in close-in neighborhoods.
So, what does it all mean? Well, remember that we spent years in a wildly overcharged market. We may have gotten used to it, but it wasn’t normal. When the dust settles on the current situation—and who can say when the drop-offs will stop, but we’re betting not until next spring at the earliest—maybe the Portland market will have corrected to a more stable and sustainable normal.
Here's a look at where prices rose and fell the most last month:
On the Rise
Milwaukie/Clackamas: Maybe it’s the lower taxes, or even-closer proximity to nature, or even the Orange Line, but apparently the Davis Graveyard isn’t the only thing drawing the hordes to Milwaukie and environs these days. This close-in suburb had the highest jump in average sales prices between August and September of anywhere in the metro area, and notched nearly 200 closed sales, too.
September 2022 average sale price: $606,700, up from $568,000 in August
Average total time on market: 35 days
Beaverton/Aloha: A slightly less dramatic jump in this Washington County stalwart, but still a notable one at a time when the market is slowing considerably elsewhere and interest rates are staying high. We can’t help but observe that buyers seem interested in staying as close to Portland as possible without actually being within city/county lines.
September 2022 average sale price: $554,100, up from $538,800 in August
Average total time on market: 29 days
Lake Oswego/West Linn: Price growth year-over-year in Portland’s priciest burbs is a beefy 9.6 percent, but month-to-month, there has been a decided leveling off. Still, average sales price here ticked up just a touch in September, and in this market that’s enough to land a spot on this side of our list.
September 2022 average sale price: $959,100, up from $950,100 in August
Average total time on market: 25 days
Northeast Portland: This quadrant is home to some of the city’s leafiest, most-sought-after neighborhoods, and some of its best restaurants to boot, but we can’t sugarcoat this for homeowners who may be looking to sell: the market there has slowed way, way down. On the upside: Buyers who’ve been looking for a way in, now is your moment!
September 2022 average sale price: $555,200, down from $605,600 in August
Average total time on market: 28 days
West Portland: The west side is big and sprawling and encompasses all manner of housing, from the most expensive real estate within city limits to small starter homes. But just like the rest of the city proper, the area is seeing a drop in prices, and potential buyers can take their time—homes here are sitting on the market longer on average than virtually anywhere else in the region.
September 2022 average sale price: $718,400, down from $776,800 in August
Average total time on market: 41 days
Tigard/Wilsonville: We’re a little surprised to see this suburban stronghold on this side of our list, especially since homes there still move on and off the market relatively briskly. And year over year, there’s been a higher average sale price growth than anywhere else in the region, save for an in-demand slice of northwest Washington County. But the numbers don’t lie; things are slowing down out there.
September 2022 average sale price: $640,000, down from $686,000 in August
Average total time on market: 29 days