Portland's housing market showed early signs of recovery in March after nearly two years of underperformance. Sales of existing homes in the Portland metropolitan area rose 11% year-over-year, and the median sale price reached $528,000, up 1.2% from March 2025, according to Regional Multiple Listing Service data. That reading ended an eight-month string of annual price declines.
The Portland metro had lagged the national recovery narrative for extended stretches in 2024 and 2025. Tech-sector hiring reductions, public-safety perception issues in downtown submarkets, and state tax policy debates all contributed to softer buyer activity. Realtor.com's March data showed Portland online search volume up 14% year-over-year, the first meaningful positive signal in the metric since 2022.
"Portland buyers are returning as price stability becomes clearer," said Stephen FitzMaurice, a broker at Real Estate Agent PDX. FitzMaurice said the late-2025 price bottoming and signs of downtown-revitalization efforts have contributed to firmer buyer sentiment.
Active inventory in the metro stood at 4,642 units at the end of March, up 9% from a year earlier. Months of inventory measured 3.1, down from 3.4 in March 2025 as sales outpaced listing growth. The price-to-list ratio on closed transactions averaged 99.4%, compared with 98.2% a year earlier.
The recovery has been concentrated in eastern and suburban submarkets. Gresham, Milwaukie, and Clackamas all posted price gains of 3 to 5%. The inner-city submarkets of Pearl District, downtown, and the west-side neighborhoods recorded more modest gains, with some areas still showing flat to slightly negative year-over-year prices.
Employment data underpinning the recovery has also improved. Oregon Employment Department reported Portland metro added 9,400 jobs in the 12 months ending February, down from the 14,000 pace a year earlier but positive overall. Silicon Forest employers including Intel, Nike, and Columbia Sportswear have maintained workforce levels with modest reductions.
Condominium conditions remain softer than single-family. The Portland condo median of $395,000 was up just 0.3% year-over-year in March. Days-on-market for condos averaged 68, compared with 42 for single-family. Older downtown condo buildings with elevated HOA dues continue to see discounted transactions.
Oregon's newly-enacted estate tax reform, which took effect January 1, 2026, raised the exemption threshold from $1 million to $7 million over four phases. Tax attorney Kristen Bowes at Miller Nash LLP said the change has reduced incentive for some older homeowners to relocate out of state, which had been a factor in the inventory dynamics of the prior two years.