Top 5 Portland Real Estate Market Trends to Watch in 2022

Keeping an eye on the market—both nationally and locally—is what we do. Over the past couple of years, it has been challenging to anticipate real estate trends due to unprecedented circumstances. As we reach the...

portland real estate

Keeping an eye on the market—both nationally and locally—is what we do. Over the past couple of years, it has been challenging to anticipate real estate trends due to unprecedented circumstances. As we reach the halfway point of 2022, it's crucial to provide an update on Portland's real estate market trends compared to national models and understand what they imply for the rest of the year.

1. Fed's Rate Hikes and Portland Mortgage Rates

In June 2022, the Federal Reserve announced the most substantial rate hike since 1994. These increases are in response to the escalating inflation affecting various consumer sectors. While the Fed rate hikes don't directly determine mortgage rates, lenders adjust their rates accordingly. Experts predict mortgage rates to finish 2022 anywhere from 4.8% to 5.5%, potentially reaching as high as 7%.

Graph from BLS Click the image for an interactive graph—Graph from BLS

2. Shift in Real Estate Supply and Demand

Portland's real estate market began 2022 with rising home prices. However, buyer competition for the limited housing inventory has somewhat eased due to rising interest rates. Although prices continue to increase, buyers now have a bit more breathing room while shopping for a home.

3. Portland's Housing Affordability Challenge

Despite being more affordable than many West Coast cities, Portland faces increasing home prices and rapidly rising interest rates. Homeownership prospects are the worst they've been since before the 2008 recession. Rental prices are also on the rise, making it difficult for residents to find affordable housing options.

Graph from Willamette Week

4. Portland's Residential Infill Project

Portland's Residential Infill Project aims to address the affordability and inventory issues. The project allows for more multi-family housing options by opening up single-dwelling zones. This initiative creates opportunities for homeowners to generate additional income and improves housing accessibility for residents. While concerns about potential displacement exist, studies suggest the project will decrease low-income tenant displacement and increase affordable housing stock.

5. Slowing Home Sales and Rising Inventory

Nationally, housing supplies are increasing, and home sales are declining, indicating a shift towards a more balanced market. Rising interest rates and buyer fatigue contribute to this change. However, the urgency to buy remains due to the fear of further interest rate increases.

Portland Fall Real Estate Market

As we approach fall, the market will likely experience seasonal slowing, leading to increased inventory and potential home price drops. Fall is traditionally a favorable time to buy a home, considering these factors.

Work with an Experienced Portland Real Estate Agent

If you're feeling overwhelmed by these market trends, reach out to us. With almost 20 years of experience in the Portland metro area, our top-performing agents can provide timely advice and assist you in buying or selling a home. Contact our top 1% seller’s agents or our top 1% buyer’s agents, or chat with the bot on our site.

Stay informed and make well-informed real estate decisions in Portland.

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