The home market in Portland in the first quarter of 2023 seems to be locked in a stalemate. On the one hand buyers cannot afford too much more, especially with rising interest rates with record prices. On the other hand sellers may be locked in at a lower rate and do not want to take a loss on a property they bought within the last few years.

According to the latest report from the Regional Multiple Listing Service, a firm that tracks sales in the Northwest, activity in the Portland real estate market slumped in the first quarter of 2023, with new listings, pending sales, and closed sales all dropping. However, there is still quite an influx of buyers coming from out of state to buy “cheaper” homes in Portland.

It is difficult for RMLS to provide reasons for market changes, just data, but higher interest rates have been weighing on the market for months, and these rates appeared to suppress activity again in the first quarter.

However, prices held steady, with a median sale price of $514,900 down just 2.8%.

In more recent years, Portland has experienced a significant increase in housing prices due to the city’s popularity and limited housing inventory.

According to Zillow, as of September 2021, the median home value in Portland was $567,000, with home values having increased by 20.1% from 2020-2021, so there has been a slowdown since this period. The average rent for a one-bedroom apartment is around $1,500 per month.

As for the future, it’s anyones guess where the market goes. Common sense may say that prices have to fall, but markets often have a mind of their own and are wildly unpredictable.