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The past couple of years in real estate might have felt like a rollercoaster you didn’t sign up for; highs, lows, and that one loop that makes you question your life choices. But there’s good news: according to the National Association of Realtors (NAR), the wild ride might finally be smoothing out. NAR predicts brighter days ahead for the housing market in 2025 and beyond, with more home sales, calmer mortgage rates, and a better overall vibe (finally!).
The economy’s improving and sellers are listing more homes. Whether you’re looking to move, invest, or just enjoy the market drama from the sidelines, here’s what you need to know about the Real Estate trends for Portland in 2025:
1. Home Sales to Rise
If you’ve been waiting for the right time to buy or sell, 2025 could be your year. More people are expected to jump into the market, whether it’s for a job relocation, growing families, or just needing a change of scenery. So, if your current home feels like it’s bursting at the seams, or if you’re just tired of that one neighbor who mows their lawn at 7 a.m., it might be time to make a move.
2. Mortgage Rates to Moderate
Remember when mortgage rates felt like the housing market’s ultimate buzzkill, and we didn’t know if they were going to go down or shoot back up again? Top economists are predicting a more stable mortgage market this year and next year. If you’ve been waiting to buy a house until the rates drop down into the crazy rates we say in 2020 and 2021, you could end up waiting forever. However, rates are expected to go down slightly. Best advice I can give, don’t let your mortgage rate be the only deciding factor. Look at your finances and determine your monthly budget, while factoring things in like taxes, insurance and maintenance expenses. Then review your options in regards to housing inventory (I can help with this) and decide from there.
3. Home Appreciation Rates Will Moderate
Home prices had been on a wild upward climb for quite a while, but the last couple of years slowed down that crazy trajectory we were on. That trend is expected to continue into 2025 to bring more balance. That’s great news for buyers who are tired of paying top dollar for fixer-uppers. For sellers, it means pricing your home realistically is more important than ever. Think of it like dating, overselling yourself might turn people off, but honesty and a little effort will get you far.
4. First-Time Buyers Are Getting Older
Today’s first-time buyers aren’t fresh out of college anymore, most are closer to their late 30s or early 40s. Blame it on student loans, rising costs, or avocado toast if you must, but older buyers bring a clear advantage, they’re more financially stable and know exactly what they want. So, if you’re in this group, know that your timing is perfect, gray hairs and all.
5. The Allure of City Living Grows
After a few years of folks moving out to the burbs during the pandemic, city living is making a comeback across the country. With walkable neighborhoods, trendy coffee shops, and no need to drive everywhere, urban life is regaining its shine. If you’ve been dreaming of a downtown apartment or a home in a bustling neighborhood, now’s the time to explore your options. Just be prepared for the parking wars.
6. More Buyers Are Pooling Their Money Together
Can’t afford a house on your own? You’re not alone. More buyers are teaming up with friends, family, or even coworkers to make homeownership a reality. It’s a little like “The Golden Girls” but with better Wi-Fi. Just make sure you set clear expectations about finances and responsibilities before signing anything. The last thing you want is a feud over who forgot to pay the water bill.
Real estate in 2025 is shaping up to be full of opportunity and a lot less chaos. Whether you’re buying your first home, selling your current one, or just daydreaming about your next big move, the market has something for everyone. So, cheers to smoother transactions and happier homes this year! And as always, reach out to me if you need anything!
-That 1 Realtor Guy
