The Housing Market Is Turning a Corner in Portland, OR Going into 2026

After a stretch of high mortgage rates, quiet listings, and buyers waiting on the sidelines, the housing market in Portland, OR is finally showing momentum again. Sellers are stepping forward. Buyers are re‑evaluating what’s possible. And for the first time in a long while, the market isn’t stuck, it’s shifting.

We’re not talking about a dramatic surge. But we are seeing the early steps of a meaningful comeback that could build stronger momentum heading into 2026.

Here are the three big trends quietly reshaping the market right now.

1. Mortgage Rates Are Trending Down

Rates move constantly, that’s expected. But when you zoom out and look at the broader trend, mortgage rates have taken a noticeable dip over most of the year. Recently, the market has even seen some of the best rates of 2025.

Freddie Mac’s Chief Economist, Sam Khater, explains how this impacts buyers:

“On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving.”

For Portland buyers, that means:

• More buying power
  
  

• Lower monthly payments
  
  

• Access to homes that were previously out of reach
  
  

Redfin data shows that a buyer with a $3,000 monthly budget can now afford about $25,000 more home than they could just one year ago. Small market shifts can make a big financial difference.

2. More Homeowners Are Finally Listing Their Homes

For years, the lock‑in effect kept homeowners from moving, and protecting their ultra‑low mortgage rate felt more important than upgrading or rightsizing.

But that trend is easing.

As life changes and rates soften, more Portland homeowners are choosing to list their homes. That increase in inventory is something buyers have been waiting for.

Realtor.com data shows inventory growth heading toward levels we haven’t seen in nearly six years.

More inventory means:

• More choice for buyers
  
  

• More negotiating power
  
  

• A healthier balance between supply and demand
  
  

Whether sellers are relocating, expanding their families, downsizing, or simply ready for a change, their movement strengthens the entire Portland real estate market.

3. Buyers Are Re‑Entering the Market

It’s not just sellers showing up, buyers are returning, too.

The Mortgage Bankers Association reports purchase applications are up compared to last year, which means demand is quietly rebuilding.

Economists at Fannie Mae, MBA, and the National Association of Realtors all anticipate steady, sustainable growth in home sales heading into 2026.

This isn’t a rapid rebound. It’s a slow, stable return to an active, more balanced market, exactly what many buyers and sellers have been waiting for.

Bottom Line

After several quieter years, the housing market in Portland, OR is finally gaining traction. Lower rates, more listings, and a growing pool of buyers are paving the way for meaningful movement into 2026.

If you want to understand how these shifts impact your next move in Portland, a conversation with the Own It Northwest Team can help you approach the market with clarity and confidence, whether you’re planning to buy, sell, upgrade, downsize, or simply explore your options.

The market is turning a corner. When you’re ready, the Own It Northwest Team can help you turn the right way with it.