The Ritz-Carlton Residences Portland closed only 11 of 132 units in 2024–2025 at an average $274,000 reduction from original list, illustrating external obsolescence and violation of the principle of conformity in downtown Portland’s soft condo market.
Block 216 (The Ritz-Carlton, Portland hotel and Ritz-Carlton Residences) viewed from West Burnside Street, Portland, Oregon. Photo: Steven Walling via Wikimedia Commons (CC BY 2.0)
As 2025 draws to a close, Block 216—Portland’s tallest residential tower at 460 feet and 35 stories—stands as a prominent feature of the downtown skyline. Completed in 2023–2024, the mixed-use project includes The Ritz-Carlton, Portland hotel on the lower floors and 132 branded luxury condominiums above, marketed as the Ritz-Carlton Residences, Portland.
Launched with considerable optimism for a post-pandemic downtown revival, the residences were positioned as the pinnacle of urban luxury living—complete with Ritz-Carlton service access, premium finishes, and panoramic views. Original list prices ranged from $850,000 to $7,850,000.
Yet the market response has been markedly different. As of December 31, 2025, only 11 units have closed. The original developer transferred the unsold inventory to the lender via deed in lieu of foreclosure in summer 2025, and Christie’s International Real Estate Evergreen was appointed exclusive brokerage in December 2025, with significant price reductions scheduled for January 2026.
This appraisal deep dive examines the project’s sales and listing history through RMLS data, placing it within the broader context of the Portland Downtown condominium market and highlighting key valuation principles brought into sharp relief.
Timeline of Key Developments
2019–2023: Block 216 construction and pre-sales period. Residences marketed under Ritz-Carlton branding license as ultra-luxury product with hotel amenity access.
2024: Tower completion and public launch of condominium sales under LUXE Forbes Global Properties. Phased marketing begins.
Late 2023–early 2025: Eleven closings recorded in RMLS, eight of which show 0 days on market (indicative of off-market or exclusive arrangements).
Summer 2025: Developer executes deed in lieu of foreclosure, transferring bulk unsold inventory to lender Ready Capital—a project-level transaction, not individual buyer foreclosures. Public records confirm the hotel portions of Block 216 transferred to a lender REO entity in July 2025.
December 2025: Christie’s International Real Estate Evergreen appointed exclusive brokerage; major price repositioning announced for January 2026.
The Portland Downtown Condominium Market: A Soft Backdrop
The Ritz-Carlton Residences are located in the City of Portland’s “Portland Downtown” neighborhood—the central area immediately south of the Pearl District, encompassing the West End and cultural district around Pioneer Courthouse Square and the South Park Blocks.
The Ritz-Carlton Residences, Portland (Block 216) within the City of Portland’s “Portland Downtown” neighborhood boundary, immediately south of the Pearl District. Map via Bing Maps
This area offers exceptional walkability and proximity to cultural institutions, but the condominium market has remained soft for years. From 2022–2025, 482 condominium sales closed in the neighborhood at an average price of $407,358 and $372 per square foot. Units averaged 1,109 square feet in size, with an average year built of 1982 and average monthly HOA fees of $784.
The scatterplot below illustrates the price distribution over time:
Sales Price vs. Date of Sale for condominiums in Portland’s Downtown neighborhood (2021–2025). All points are sized proportionally by total square feet. Gray dots represent all other sales; colored dots are the 11 closed sales at the Ritz-Carlton Residences, Portland. The Ritz units closed well above the neighborhood norm.
Sales prices have shown remarkable stability—remaining largely in the $200,000–$1.2 million range, with the historical high (prior to Block 216) at $3.065 million from a 2017 transaction. This stagnation reflects persistent oversupply and slow absorption in the urban core.
The table below quantifies the contrast between the neighborhood and the Ritz-Carlton Residences:
Metric
Portland Downtown (482 sales)
Ritz-Carlton (11 sales)
Insight
Avg Close Price
$407,358
$1,500,364
Ritz closed at 3.7× the neighborhood average.
Avg PPSF
$372.27
$1,052.73
Ritz realized 2.8× higher PPSF—still far above neighborhood norm.
SP/OLP %
93.29%
84.48%
Ritz required significantly larger price reductions from original list to close.
Avg Year Built
1982
2023
Ritz is brand-new vs. 40+ year-old neighborhood average.
Avg Total SF
1,109
1,363
Ritz units larger on average.
Avg HOA Monthly
$784
$2,402
Ritz HOA 3× higher—significant carrying cost difference.
Avg CDOM
114
25
Skewed by Ritz exclusives; real public marketing time much longer.
Data: RMLS | Portland Appraisal Blog
The Ritz-Carlton Residences: Pricing Premise vs. Market Reality
Of the 132 total residences, 71 distinct units were publicly marketed in phases—full release of floors 21–23 (the “entry-level” tiers) and selective listings on higher floors. These 71 units generated 105 separate listing records in RMLS, with a median of 145 days per active spell and many accumulating 400+ cumulative days across repeated expirations and re-lists.
Only 11 closings were recorded:
Average sold price $1,500,364 (average reduction of $274,000 from original list price per unit).
Average PPSF $1,053 (marginal trend from regression ~$1,665).
These closings occurred between late 2023 and February 2025, with no additional sales recorded in the remainder of the year.
The developer’s original pricing was highly disciplined and size-driven:
List Price vs. Total Square Feet for the 71 marketed units at the Ritz-Carlton Residences, Portland (2022–2025). Trend implies ~$2,096 per square foot.
The closed sales followed a similar pattern but at a lower level:
Sales Price vs. Total Square Feet for the 11 closed sales at the Ritz-Carlton Residences, Portland (~$1,665 marginal PPSF trend, average realized $1,053/psf).
Among the 11 closed sales (primarily on floors 21–31), no discernible premium for higher floors was observed in realized prices:
Sales Price vs. Floor Number for the 11 closed sales at the Ritz-Carlton Residences, Portland (floors 21–31). R² near zero—no contributory value observed for higher floors in current data; upper floors remain unsold.
Notably, eight of the 11 closings showed 0 days on market—likely off-market or exclusive arrangements. The publicly marketed units faced far greater resistance.
The Inclusionary Housing Obligation and Additional External Pressure
Portland’s Inclusionary Housing program requires new residential developments of 20 or more units to either include affordable units or pay a fee-in-lieu. For Block 216, the developer initially proposed 26 on-site affordable units during the entitlement phase but switched to the fee option in 2023.
On-site inclusion proved functionally challenging: even with restricted sale prices, the project’s elevated monthly HOA dues (averaging $2,402 across closed sales) and luxury service model would likely exceed income qualifications for targeted buyers. The calculated fee-in-lieu obligation totaled approximately $7.8 million (base plus interest) and was due December 31, 2025.
Following the summer 2025 deed-in-lieu transfer to lender Ready Capital, uncertainty remains regarding collection of this amount. As of the post date, it is unknown whether the fee has been paid. If unpaid, it would represent an additional external factor appraisers must consider—a financial encumbrance separate from the physical improvements that may influence marketability and value reconciliation for both unsold inventory and existing ownerships.
Appraiser Perspective: The Principle of Conformity and External Obsolescence
The original pricing strategy for the Ritz-Carlton Residences appears to have been calibrated to the Pearl District rather than the property’s actual location in Portland Downtown. The Pearl has demonstrated a proven ceiling around $7 million for top-tier condominiums, as detailed in an earlier Portland Appraisal Blog post analyzing that market over the past decade. In contrast, the highest condominium sale in the Portland Downtown neighborhood prior to Block 216 was $3.065 million in 2017.
By listing units up to $7.85 million, the developer effectively positioned the project outside the neighborhood’s historical range of conformity—a principle of appraisal theory that holds value is maximized when a property aligns with prevailing market expectations in its location. The resulting resistance illustrates how site-specific external factors can override new construction, branding, and amenity premiums.
This pricing strategy mirrors a common challenge appraisers encounter when reviewing sale transactions or proposed listings: comparable sales selected from superior or more established submarkets to support an optimistic value conclusion. The uniform price reductions required on closed sales (average $274,000 reduction from original list price per unit) and prolonged adverse listing history on the unsold inventory further demonstrate concentrated external obsolescence within an already challenged submarket.
Outlook and Implications for Owners and Lenders
The January 2026 price repositioning may improve absorption at levels more aligned with neighborhood norms. However, the influx of discounted intra-building comparable sales could create reconciliation challenges for appraisals of the existing 11 ownerships—particularly the eight early exclusive buyers who closed near original asks.
Lenders and owners of recently purchased units should monitor upcoming sales closely, as distressed marketing conditions on remaining inventory can influence market value indications even for arms-length prior transactions.
For developers and lenders contemplating future high-rise condominium projects in the urban core, the Block 216 experience underscores the importance of grounding pricing premises in location-specific comparable data rather than aspirational benchmarks from adjacent submarkets.
Sources & Further Reading
Christie’s International Real Estate Evergreen appointment and price repositioning announcement: Press Release
The Portland Pearl District Condo Market – The Last 10 Years (2015–2024): Portland Appraisal Blog
Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.
CODA
Are you an agent in Portland who wonders why appraisers always do “x”?
A homeowner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
Q3 2025 RMLS data shows the Portland Region’s detached starter homes (5th–35th percentile) average $469k and are dominated by mid-century builds on larger lots—with new construction offering modern features but far less space. Appraisal and buyer insights below.
A classic early-20th-century bungalow in the Portland area—the type of modest, well-loved home that dominates today’s starter-tier inventory. Via Canva Pro
Earlier this month, Redfin highlighted Portland as one of the stronger markets nationally for starter-home activity, defining starter homes as sales in the 5th–35th percentile by price. We adopt the same percentile convention here for consistency.
Redfin’s reported median of approximately $420,000 for Portland starter homes includes all property types (condos, townhomes, and single-family). Focusing solely on detached single-family residences—a popular choice across the region, including for many urban buyers seeking yard space and privacy over attached ownership—Q3 2025 RMLS data for the 5th–35th percentile tier shows an average close price of $469,000.
Few would be surprised that new construction plays a limited role in true entry-level pricing—after all, building costs remain elevated. Yet the data shows builders are still delivering a modest but meaningful number of brand-new homes into this tier (about 4.2% of starter sales, compared to 9.1% across the full market). This demonstrates that, through efficient design, infill strategies, and lot divisions, new product can compete in the lower price bands.
Local buyers want to know: how much home does a starter budget actually buy? This analysis examines square footage, lot size, build era, and location differences across counties—revealing a market dominated by mid-century homes with a modest but noteworthy presence of brand-new construction.
How Much Home a Starter Budget Buys by County
The table below summarizes Q3 2025 closed sales for detached single-family homes in the 5th–35th percentile across the core Portland Region counties (Hood River row excluded due to only two qualifying sales).
County
Avg Close Price
Avg Yr Built
Avg Total SF
Avg Acres
# of Sales
Clackamas
$474,738
1965
1,553
0.279
256
Columbia
$457,108
1983
1,774
0.617
58
Mult.
$459,909
1951
1,591
0.163
666
Wash.
$488,954
1976
1,495
0.154
323
Yamhill
$453,522
1981
1,532
0.197
113
Grand Total
$468,595
1963
1,565
0.203
1,418
Data: RMLS | Portland Appraisal Blog
Multnomah County drives nearly half the volume, delivering the oldest average build year (1951). Washington County posts the highest average prices and hosts the most new construction. Outer counties like Columbia and Yamhill provide newer homes on larger parcels, though with far fewer transactions.
Surprisingly, across the region, starter homes are very similar in average price. The standard numerical metrics which are easy to see in RMLS, (e.g. total square footage, lot size, year built, etc.), are not the primary determinant of value. As we shall see, what matters more is quality, condition, and overall site & functional utility. Buyers in the starter home tier make conscious trade-offs between older homes with larger lots and newer homes with little to no functional backyard.
Of all the standard numeric metrics, total square footage shows one of the stronger relationships with price in the starter tier—though the influence is still modest.
Close Price vs. Total Square Feet for Starter-Tier Detached Homes ≤ 0.5 Acres (Q3 2025 RMLS data – 1,380 observations). Note: The Y-axis begins at $350,000 to allow for better viewing of the dataset.
Larger homes tend to sell for higher prices, though with considerable variation—most sales fall between 1,200 and 2,000 square feet. The very slight tilt to the right indicates a weak but present relationship between starter home size and close price. The coefficient of determination (R2) for this graph is 0.1253, meaning total square footage explains only about 12.5% of the variation in price. Since total square footage is often one of the primary determinants of value in the broader housing market, this is a big clue that the size of the home isn’t the primary factor for buyers looking to enter the starter home market.
The Historical Supply Pattern: Lot Size and Build Era
Portland’s entry-level inventory bears the clear imprint of the post-war building boom.
Lot Size vs. Year Built for Starter-Tier Detached Homes ≤ 0.5 Acres (Q3 2025 RMLS data – 1,380 observations).
A polynomial trendline highlights the peak lot sizes during the 1940s–1950s post-war era, followed by a steady decline that began in the early 1960s and accelerated in recent decades. The pattern reflects an era when generous lots were standard, followed by shrinking parcels as land values rose, urban growth boundaries took effect, and lot divisions became common. Buyers choosing older starter homes today typically gain significantly more outdoor space than those selecting new construction.
New Construction: A Modest but Noteworthy Presence
While new homes account for only 4.2% of starter-tier sales, their ability to reach this price range in a high-cost building environment remains impressive.
Segment
Avg Close Price
Avg Total SF
Avg Acres
# of Sales
Existing
$467,996
1,569
0.207
1,359
New
$482,387
1,479
0.107
59
Grand Total
$468,595
1,565
0.203
1,418
Data: RMLS | Portland Appraisal Blog
New homes sell for only about 3% more than existing ones despite brand-new condition, but deliver less interior space and roughly half the land.
Buying a new home in the starter tier is akin to buying a new car on a tight budget: you gain the benefits of fresh systems, modern design, and warranty peace of mind, but often in a smaller package with fewer amenities compared to a well-maintained used model from a higher trim line.
County
Avg Close Price
Avg Yr Built
Avg Total SF
Avg Acres
# of Sales
Clackamas
$489,803
2025
1,606
0.154
8
Columbia
$420,000
2025
1,458
0.130
2
Mult.
$450,820
2025
1,098
0.088
18
Wash.
$509,366
2025
1,699
0.079
25
Yamhill
$475,578
2025
1,540
0.216
6
Grand Total
$482,387
2025
1,479
0.107
59
Data: RMLS | Portland Appraisal Blog
For buyers, this creates a clear choice: a brand-new home with modern efficiency but typically on a very small lot—often with minimal or no usable yard space, especially in Multnomah and Washington counties where most new construction occurs—or an existing mid-century home that generally offers significantly more land and outdoor space, albeit with the potential challenges of older systems and layouts. This trade-off is particularly relevant for growing families or those prioritizing play areas, gardens, or privacy.
Appraisal Insights and Challenges
One of the most revealing patterns appears when plotting close price against build year.
Close Price vs. Year Built for Starter-Tier Detached Homes ≤ 0.5 Acres (Q3 2025 RMLS data – 1,380 observations). Note: The Y-axis begins at $350,000 to allow for better viewing of the dataset.
The remarkably consistent price band across decades illustrates that chronological age has little direct influence on value in the Portland Region’s entry-level segment.
In this tier, actual age correlates weakly with sales price because buyers weigh multiple factors:
Functional obsolescence in mid-century stock (outdated floor plans, smaller kitchens/bathrooms, less efficient systems) is often mitigated by updates and strong location appeal.
Effective age and condition drive far more of the value than the original build date.
Lot size and site utility frequently favor older homes; the smaller parcels common in new construction require substantial negative adjustments that offset much of the credit for new condition.
Comparable selection remains within county, where abundant mid-century comps in Multnomah, Clackamas, and Washington provide solid support — but thinner volume in outer counties demands careful bracketing.
When appraising a new-construction home in this tier—where truly similar recent sales are still limited and down approximately 25% year-over-year in Q3 2025 (with Multnomah County off 48%)—appraisers typically rely on other relatively recent builds (often within 10 years) and apply appropriate adjustments for differences in site characteristics, size, and location.
The same pattern holds when looking at the data from a price-per-square-foot lens, but with a slight twist:
PPSF (TSF) vs. Year Built for Starter-Tier Detached Homes ≤ 0.5 Acres (Q3 2025 RMLS data – 1,380 observations).
From the 1950s onward, PPSF becomes progressively more compressed—older homes exhibit wide spreads driven by dramatic differences in condition, updates, historic appeal, and location premiums, while mid-era and late-20th-century stock tightens as market expectations and remodeling homogenize perceived value.
Brand-new 2025 homes, however, break this decades-long compression pattern. Their PPSF spreads out again, reflecting greater influence from location-driven land costs and builder-specific choices (e.g., finishes, lot configuration) rather than the uniformity imposed by age and updates on existing stock. In effect, today’s entry-level new construction reintroduces variation that mirrors pre-1950 homes—but for different reasons: land value dominance and strategic specs to hit price points, rather than condition swings. This underscores why new-construction starter homes often form their own submarket. Appraisers valuing them face a narrower but distinct comp pool.
These dynamics show that the starter home market is not uniform and the appraiser needs to carefully delineate the competitive market segment to avoid having to make large adjustments between disparate properties. One technique appraisers often employ is to use similar, but older sales when recent data is thin and make an appropriate market conditions adjustment.
Conclusion
The Portland Region’s Q3 2025 starter-home segment continues to rely predominantly on mid-century inventory on lots larger than anything new we’re building today—a pattern unlikely to shift dramatically in 2026 absent major changes in new supply. (Although the City of Portland is certainly trying to incentivize new projects with SDC waivers.) The modest foothold of new construction shows builders adapting through infill and efficient design, but at the clear cost of site size and outdoor space.
For buyers, the choice boils down to priorities: modern and low-maintenance on a small lot, or more space and yard with the realities of an older home. For appraisers, lenders, and agents, recognizing how effective age, site utility, location, and condition outweigh chronological age remains key to accurate valuation in this segment.
Portland’s Temporary SDC Exemption for New Housing Units (2025–2028): Portland Appraisal Blog
Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.
CODA
Are you an agent in Portland who wonders why appraisers always do “x”?
A homeowner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
How pre-1997 Portland metro homes—especially those with veteran or active-duty exemptions—are facing sudden property tax jumps on sale or disqualification.
A classic pre-1940 home in the Portland Region – the type of property often benefiting from deep Measure 50 tax compression. Photo: Portland Appraisal Blog
Imagine closing on a well-maintained pre-1940 Craftsman in an established close-in Portland neighborhood. The sale price felt fair, the taxes shown on the listing and county statement appeared reasonable, and the transaction cleared due diligence without issue. Then the next year’s tax bill arrives—$2,000 to $6,000 higher than anticipated. The increase isn’t due to a sudden spike in market value, but to a change in how Oregon counties now calculate Maximum Assessed Value (MAV) when certain partial property tax exemptions end.
This situation is no longer hypothetical. Oregon REALTORS first highlighted the risk in a December 12th, 2025 internal “Forms Tip of the Week” communication, alerting members that the loss of veteran or active-duty partial exemptions—commonly triggered when a qualifying veteran or surviving spouse sells the home or passes away without a qualifying successor—can lead to significant tax increases under updated guidance from the Oregon Department of Revenue.
While the veteran and active-duty exemptions (ORS 307.250 and 307.286) have drawn attention to the issue, the underlying driver is broader: the substantial tax compression created by Measure 50 for properties built or long-held before 1997.
Historically, when these modest partial exemptions ended, counties simply removed the discount and allowed the low underlying MAV to continue. The 2024 guidance change now enforces a constitutional requirement to reset MAV closer to current market reality upon disqualification.
The outcome: buyers may face permanently higher carrying costs they did not expect, sellers (including veterans and surviving spouses) can find their properties harder to market at full value, and appraisers encounter a marketability factor worthy of note when present.
This Deep Dive reviews the mechanics, illustrates the pattern with Portland Region sales data, and provides practical steps for identifying and addressing the issue in appraisal assignments.
Understanding Measure 50: The Foundation of Tax Compression
To grasp why the loss of a veteran or active-duty exemption can now lead to significant tax increases, we must first understand Oregon’s Measure 50 property tax system, approved by voters in 1997.
Measure 50 replaced the previous tax structure with two key values for each property:
Real Market Value (RMV): The county assessor’s estimate of what the property would sell for on the open market. This value can rise or fall annually with market conditions.
Maximum Assessed Value (MAV): A separate taxable value created by Measure 50. For existing properties in 1997, MAV was initially set at approximately 90% of the 1995–1997 RMV. Thereafter, MAV is generally limited to a 3% annual increase, with exceptions for major additions, improvements, or certain other events.
The Assessed Value (AV) is the lesser of RMV or MAV. Taxes are calculated by multiplying the AV by the local tax rate.
In high-appreciation markets like the Portland metro area, this 3% cap creates substantial tax compression over time. A home purchased or built before 1997 can have an MAV far below its current RMV after decades of strong market growth.
Annual property taxes vs. Year Built, excluding new construction and obvious data errors. Note: Scatter plots are limited to properties with annual taxes of $21,000 or less to highlight the primary distribution and improve readability.
The scatter illustrates the effect clearly: pre-1960 homes are overwhelmingly clustered below $10,000–$12,000 in annual taxes, with the densest grouping under $8,000–$9,000. Properties on the far left (pre-1920 builds) often show the deepest compression, having benefited from the longest period of capped MAV growth. Post-1990 homes, by contrast, display significantly higher tax burdens, reflecting less historical compression.
When a triggering event occurs—such as disqualification from a partial exemption—the MAV can be recalculated using the Changed Property Ratio (CPR), typically around 0.54 for residential properties in Portland Region counties for the 2025–2026 tax year, applied to current RMV.
In the next section, we examine local sales data that quantifies the scale of this compression and illustrates why the reset can matter in real transactions.
The Data: Tax Compression in the Portland Metro Market
Q3 2025 sales data from detached single-family residences (SFR) in the Portland Region (Clackamas, Columbia, Hood River, Multnomah, Washington, and Yamhill counties) illustrates the scale of Measure 50 compression and why a MAV reset can create material differences in carrying costs.
The table below summarizes average sale prices and annual property taxes by approximate decade built. Flagged new construction is excluded due to frequently incomplete or preliminary tax assessments at the time of sale, which can distort the pattern of long-term compression. This brings the Q3 2025 dataset to 4,256 sales total.
Decade Bucket
Avg Sale Price
Avg Annual Taxes
Avg Tax per $1k Sale Price
Pre-1940
$671,295
$6,396
$9.33
1940–1959
$607,466
$5,766
$9.53
1960–1979
$640,000
$5,783
$9.16
1980–1999
$714,535
$7,367
$10.31
2000–2019
$761,061
$7,685
$10.10
2020+ (non-new construction)
$924,420
$8,016
$9.12
Grand Total (excluding new construction)
$688,838
$6,665
$9.68
Data: RMLS | Portland Appraisal Blog
Several patterns stand out:
Absolute tax burden increases with newer construction: pre-1980 homes average $5,766–$6,396 in annual taxes, while 2000–2019 properties average $7,685 and 2020+ non-new construction reaches $8,016.
Effective burden consistency: The Tax per $1k column remains remarkably stable at ~$9–$10 across all eras. This indicates the market prices properties assuming a similar overall tax load, regardless of age.
Pre-1940 premium: Outside recent construction, pre-1940 homes command the highest average sale prices ($671,295) despite paying among the lowest absolute taxes.
Street sign in Portland’s Historic Irvington neighborhood—one of the areas with many high-value pre-1940 homes exhibiting significant Measure 50 compression. Photo: Portland Appraisal Blog (CC BY-SA 4.0)Sale price vs. annual taxes, excluding new construction and obvious data errors. Note: Scatter plots are limited to properties with annual taxes of $21,000 or less to highlight the primary distribution and improve readability.
This scatter shows a strong positive correlation, confirming the market efficiently incorporates expected tax burden into pricing.
Annual taxes vs. total square footage, excluding new construction and obvious data errors. Note: Scatter plots are limited to properties with annual taxes of $21,000 or less to highlight the primary distribution and improve readability.
Here, numerous low-tax outliers are visible below the trend line—properties paying substantially less than size and location would otherwise suggest, consistent with Measure 50 compression.
Taken together, the data reveals a market that rewards older stock with lower absolute taxes without discounting sale prices accordingly. When a MAV reset occurs, absolute taxes move toward levels seen in newer comparable properties, creating the potential for noticeable increases in annual carrying costs.
In the following sections, we explore the specific veteran and active-duty exemptions and the 2024 guidance change that can trigger this alignment.
The Veteran and Active-Duty Exemptions
The exemptions at the center of the current concern are partial property tax reductions for certain military veterans, surviving spouses, and active-duty service members. With approximately 267,000 veterans living in Oregon (and over 114,000 in the Portland metro region), even a fraction of qualifying owners selling or changing status can affect a meaningful number of transactions.
The disabled veteran or surviving spouse exemption (ORS 307.250) provides a reduction to assessed value for homeowners with a service-connected disability rating of 40% or higher (or unremarried surviving spouses). For the 2025–2026 tax year, the reduction is up to $31,565 (service-connected) or $26,303 (standard), worth roughly $400–$700 in annual tax savings in Portland metro areas depending on local rates.
A separate active-duty exemption (ORS 307.286) offers a larger reduction (up to $108,366 for 2025–2026) for Oregon-domiciled service members on qualifying active duty outside the state.
Both are partial exemptions applied to the assessed value of the owner’s primary residence and tied to personal status. Eligibility generally requires a one-time application and VA certification (re-filing needed only if moving to a new property or certified by a private physician rather than the VA).
While the direct savings from these exemptions is modest ($400–$700/year for most veteran claims), the 2024 DOR guidance change treats their disqualification as triggering a full MAV reset—potentially closing decades of Measure 50 compression and leading to significantly higher taxes.
Active-duty cases (e.g., exemption ending upon return home) are less common and typically involve properties with less historical compression.
In the next section, we detail the 2024 guidance change and how it activates the reset.
The 2024 Rule Change
For decades, when a veteran or active-duty partial exemption ended, county assessors typically removed the reduction but preserved the underlying compressed MAV, allowing it to continue growing at the standard 3% rate.
This practice changed with updated guidance from the Oregon Department of Revenue, effective for disqualifications on or after January 1, 2024.
The DOR clarified that disqualification from a partial exemption triggers the constitutional requirement to recalculate MAV using the Changed Property Ratio (CPR)—the county-wide ratio of average MAV to average RMV for the property class. The new MAV becomes current RMV multiplied by the CPR (typically around 0.54 for residential properties in Portland Region counties for the 2025–2026 tax year).
This administrative enforcement of the existing constitutional language means the modest exemption savings ($400–$700/year) is no longer the only consequence. The reset can close much of the Measure 50 compression gap.
In the Portland Region data, pre-1980 homes average $5,766–$6,396 in taxes. A reset aligns absolute taxes closer to 2000+ levels ($7,685–$8,016 average), producing increases commonly in the $1,500–$4,000 annual range on typical sales, with $4,000+ possible in deeper-compression or higher-rate scenarios.
The change is statewide, though impacts vary by local appreciation and rates. Some counties have noted the potential for “significant increase” on loss of exemption.
In the next section, we examine the real-world implications for transactions and what appraisers should watch for.
Real-World Implications
The 2024 guidance change does not turn every pre-1997 home sale into a crisis, but it introduces friction that can affect negotiations, marketability, and reconciliation of comparables.
Typical tax increases fall in the $1,500–$4,000 annual range for properties in the Portland Region dataset ($600,000–$800,000 sale prices with pre-1980 build years). This translates to $125–$333 extra per month.
The Silent Car Payment
In late 2025 terms:
Average used-car payment: ~$532/month
Average new-car lease: ~$596/month
Average new-car purchase payment: ~$748/month
A $2,000–$4,000 annual increase ($167–$333/month) is less than a typical car payment but still noticeable—equivalent to a permanent, non-negotiable “utility bundle” that never goes away. For buyers already stretched in a higher-interest-rate environment, it can shift affordability and prompt renegotiation.
Outlier cases with deeper compression (often “sweet” pre-1940 homes in high-appreciation locations) can see $4,000–$8,000+ increases ($333–$667/month)—territory overlapping average used-car or new-lease payments. These are the transactions Oregon REALTORS described as producing “increases in the thousands,” sometimes requiring substantial seller concessions or risking fallout during due diligence.
The primary impact is often on marketability rather than outright deal death:
Savvy buyers (or their agents/lenders) anticipate the higher future taxes and adjust offers downward.
Sellers—particularly veterans or surviving spouses downsizing—may receive lower net proceeds (capitalizing a $3,000 increase at 6% equates to ~$50,000 less effective value).
Listings can linger if the low current taxes mask the post-closing reality.
For appraisers, this creates a new lens for outliers:
A comparable with an unexplained lower price, large concession, or extended days on market may reflect buyer reaction to a pending MAV reset.
Low-tax outliers in the grid (visible in the Taxes vs. Total SF scatter) could indicate compressed MAV or an active exemption—worth verifying via county records when material.
The change is statewide, but effects are most pronounced in areas with strong historical appreciation, like the Portland Region.
In the next section, we outline practical steps appraisers can take to identify and address this factor in reports.
What Appraisers Should Do
The 2024 guidance change introduces a marketability factor that appraisers in Oregon should consider when the subject or comparables involve pre-1997 properties, particularly those with potential veteran or active-duty exemptions.
Practical Checklist
Verify Exemption Status Review county tax records and the preliminary title report (if available) for indications of an active veteran, surviving spouse, or active-duty partial exemption. Many counties list it on the property tax statement or online portal.
Estimate Post-Transfer Tax Liability If an exemption is present and likely to disqualify on transfer (e.g., sale to non-qualifying buyer), note the potential increase. Use county assessor tools or CPR data to project the reset MAV (current RMV × CPR) and resulting taxes. Typical jumps in the Portland Region fall in the $1,500–$4,000 annual range, with higher amounts possible in deep-compression cases. Note that tax rates vary by code area.
Comment on Marketability When Material Include commentary if the differential is significant: “The subject property currently benefits from a veteran partial exemption expected to end upon transfer, potentially increasing annual taxes by an estimated $X. This may affect buyer affordability and market reaction.”
Reconcile Outliers with This Lens Low-tax outliers in the sales grid (visible in Taxes vs. Total SF analysis) may reflect compressed MAV or an active exemption—a “decaying asset” under the new guidance. Check effective tax rate (annual taxes ÷ sale price): ~0.6–0.8% may indicate compression; consider post-reset alignment (~1.1–1.3%) in reconciliation. Using a compressed comparable without adjustment risks overvaluing the subject’s marketability, as savvy buyers increasingly factor in the reset.
Use Dual Scenarios if Appropriate For subjects with active exemptions, provide current and projected post-reset tax estimates in the addendum or comments to inform the intended user.
Resources:
County assessor websites (tax statements often flag exemptions)
DOR Veteran Exemptions page
MAV Manual for general mechanics
As resets propagate into closed sales (expected more visibly in 2026 onward), this factor may explain otherwise puzzling comparables. Early identification helps ensure accurate valuation and informed clients.
In the closing section, we look at the broader outlook.
Closing Thoughts
The 2024 DOR guidance change is an administrative enforcement of a long-standing constitutional provision, but its impact is only now becoming visible as disqualifications occur and 2025–2026 tax statements arrive. Larger effects are expected in the 2026–2027 cycle as more veteran-owned properties sell or change status.
The 2025 Oregon Legislative Session saw bills (e.g., HB 2361/SB 387 aiming to lower the disability threshold, HB 3287 to increase exemption amounts) intended to expand veteran benefits. While these efforts highlight recognition of the issue, none addressed the MAV reset trigger itself. The constitutional requirement remains unless amended or re-interpreted.
For appraisers working in the Portland Region and similar appreciation-driven markets, this issue adds one more layer to marketability analysis. Low-tax outliers in older properties represent a benefit that can evaporate on transfer—reliable today, but potentially “decaying” tomorrow.
Awareness helps everyone involved: appraisers reconcile comparables more accurately, agents counsel clients proactively, and buyers/sellers avoid surprises.
If you encounter real-world examples (anonymized comps with concessions due to reset concerns, or listings noting the risk), please share them for future updates. Documenting patterns strengthens our collective understanding.
Thank you for reading this Appraisal Deep Dive. Stay informed and precise in your work.
Quick Reference Cheat Sheet
Reset Formula
Real Market Value (RMV) × Changed Property Ratio (CPR)
Typical CPR (2025–2026, Portland Region residential)
~0.54 (updated annually each October)
Reset Trigger
Disqualification from veteran/active-duty exemption
Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.
CODA
Are you an agent in Portland who wonders why appraisers always do “x”?
A homeowner with questions about appraiser methodology?
If so, feel free to reach out—I enjoy connecting with market participants across Portland and the surrounding counties, and am always happy to help where I can.
And if you’re in need of appraisal services in Portland or anywhere in the Portland Region, we’d be glad to assist.
The year 2025 is rapidly yielding to 2026. In the blink of an eye, we’ll be more than halfway through this decade and sliding toward the 2030s! With that in mind, let’s examine how the single-family detached home market performed in Q3 2025 (July through September). The data reveals a market split in two—one stable, one shifting—lending itself to a Dickensian interpretation of A Tale of Two Markets.
DATA HOUSEKEEPING
Let’s define the Portland Region as the following six counties: Columbia, Clackamas, Hood River, Multnomah, Washington, and Yamhill. These counties are either contiguous with Multnomah (Portland’s home county) or closely tied to its housing ecosystem.
All data in this post reflects open-market sales—properties listed in RMLS, the primary multiple listing service for the Portland Region. The dataset was cleaned using custom tools developed by the blog author to correct misclassifications and remove non-representative entries (e.g., land or condo sales mistakenly listed as single-family).
Importantly, SNL (“Sold Not Listed”) entries—off-market transactions later entered into RMLS—have been excluded to maintain consistency and transparency.
Before diving into the Q3 2025 market data, here’s a quick overview of the major sections covered in this post. Each county-level breakdown is linked below for easy navigation, along with the regional summary that sets the stage:
The Portland Region’s single-family detached market in Q3 2025 showed signs of quiet resilience. While headlines focused on interest rates and builder pullbacks, the overall market held steady across most metrics:
📊 Key Highlights
Total Sales Volume: Up slightly from $3.21B to $3.24B (+1.08%)—a modest gain that reflects stable demand despite macro headwinds.
Average Price: Rose 0.54% to $692,778, while median price held flat at $600,000—suggesting price discipline and a balanced mix of sales.
SP/OLP Ratio: Dropped from 97.77% to 96.94%—buyers negotiated slightly more, but sellers still held firm.
DOM (Days on Market): Increased 13.25% to nearly 52 days—buyers are taking longer to commit, especially in higher price tiers.
Average PPSF: Virtually unchanged at $322—indicating stable valuation per square foot across the region.
Lot Size & Age: Average lot size grew slightly (+1.61%), while average age of homes increased by 3.43%—a subtle shift toward older inventory.
New Construction: Fell 25%—a sharp decline that reflects builder caution and financing constraints.
Distressed Sales: REOs ticked up slightly (+3.45%), while short sales declined—still a negligible share of the market.
🧭 Appraisal Insight
Despite longer exposure times and a notable drop in new construction, the Portland Region’s single-family market in Q3 2025 continues to behave like a stabilized asset class. Pricing remains anchored to fundamentals—location, size, and condition—rather than speculation or distress.
The flat median price and steady price-per-square-foot suggest that buyers and sellers are still operating within a shared valuation framework. In other words, the market hasn’t lost its pricing logic.
While exposure time isn’t generally a selection criterion for appraisers, it’s a signal—one that reflects buyer confidence, seller patience, and the pace of negotiation. In a market like this, it’s not volatility that drives value shifts—it’s nuance.
🏘️ A Tale of Two Markets: Core vs. Luxury in Q3 2025
Beneath the surface of Portland’s stabilized housing market lies a quiet divergence, one that’s been building over the past year. The aggregate metrics may suggest balance, but when you split the market by price tier, a more nuanced story emerges.
🏠 Core Market (< $1M)
The core market, which accounts for nearly 90% of all sales, remained remarkably steady in Q3 2025. Median price nudged up slightly, and average price dipped by a fraction, suggesting a high volume of mid-range transactions with tight pricing discipline. Buyers in this segment are cautious but active, and sellers are adjusting expectations without capitulating.
SP/OLP Ratio: Down just 0.75%—still strong at 97.24%
DOM: Up from ~43 to ~49 days—slower pace, but not sluggish
New Construction: Down 25%—a notable retreat, especially in Washington and Clackamas counties
The core market is behaving like a durable middle class—resilient, price-aware, and responsive to financing conditions.
🏠 Luxury Market (≥ $1M)
Before diving into the luxury segment, a quick note on definitions: For this analysis, we’re defining “luxury” as any sale at or above $1 million. It’s a useful threshold for tracking market behavior, but it’s not a perfect proxy for architectural prestige or lifestyle appeal.
Some acreage properties cross the $1 million mark based on land value alone, even if the homes themselves wouldn’t be considered luxurious in terms of design or finish. And it’s true, $1 million doesn’t hold the same purchasing power it once did. Today, it might afford a modest home in a sought-after area or a larger property with dated features in a more remote location.
This segmentation allows us to observe buyer psychology, pricing trends, and listing exposure time across different tiers. It’s a tool for analysis, not a judgment of quality or taste.
The luxury segment tells a different story. While total sales volume rose a little more than 5%, average price dipped slightly and exposure time jumped from ~69 to ~77 days. Buyers at the top end are more deliberate, and sellers are conceding more ground.
SP/OLP Ratio: Dropped 1.56% to 94.37%—a wider negotiation gap
PPSF: Down nearly 0.9%—suggesting softer valuation per square foot
New Construction: Fell 20%—from 45 to 36 units. Builders are pulling back, and luxury inventory is increasingly composed of legacy stock.
Lot Size & Age: Slightly smaller lots and older homes—less new inventory, more carryover from prior cycles
The luxury market remains active but is undergoing a period of careful assessment. Buyers are selective, and sellers are adjusting their strategies. This segment is characterized by patience, not panic.
Let’s dive into the Portland Region with some visuals before we examine each county individually.
SALES VOLUME
The following is a treemap of sales volume in the Portland Region for Q3 2025. Each block represents a county, scaled by its share of total transactions—not dollar volume:
In Q3 2025, the Portland Region’s housing activity was overwhelmingly concentrated in three counties: Multnomah, Washington, and Clackamas. Together, they accounted for over 91% of all single-family home sales, forming the backbone of the regional market.
Multnomah: Led in transaction count, driven by dense housing stock and steady turnover
Washington: Showed strong suburban demand and a mix of core and upper-tier activity
Clackamas: Balanced volume with price diversity, including notable luxury sales
The remaining counties—Yamhill, Columbia, and Hood River—played supporting roles, with smaller volumes and more rural dynamics.
This bar chart compares monthly single-family sales across Q3 2024 and Q3 2025. While July and August saw slight year-over-year declines, September posted a modest rebound, rising from 1,339 to 1,450 sales.:
Note: The y-axis starts at 1,000 to allow better examination of monthly differences.
SALES PRICE
This bar chart compares monthly average sales prices for single-family homes in the Portland Region across Q3 2024 and Q3 2025. The story it tells is one of stability with subtle movement:
Note: The y-axis starts at $660,000 to allow better examination of monthly differences.
July: $688K → $690K
August: $688K → $699K
September: $691K → $689K
While monthly average prices nudged up and down across the quarter, the net result is a tiny bump of just 0.54% year-over-year. That’s not volatility—it’s equilibrium.
NEW CONSTRUCTION
This chart shows how new construction sales fit into the broader single-family market across Q3 2025. While total monthly sales hovered between 1,450 and 1,635 units, new construction consistently made up a small fraction of that activity:
July: 145 new builds out of 1,635 total sales (~8.9%)
August: 159 out of 1,597 (~10%)
September: 122 out of 1,450 (~8.4%)
New construction represented roughly 9% of all single-family sales in Q3 2025. That’s a modest but meaningful slice—enough to influence comps and buyer expectations, but not dominant. Most buyers were engaging with resale inventory, and most appraisals will reflect that reality.
This chart compares new construction sales across the individual counties in Q3 2024 vs. Q3 2025. The trend is clear: new builds are down almost everywhere:
Washington County: Down from 280 to 245 sales—still the leader, but pulling back
Clackamas County: Dropped from 127 to 114—modest decline, but still active
Multnomah County: Fell sharply from 91 to 47—nearly a 50% reduction
Yamhill County: Down from 67 to just 18—builder activity nearly stalled
Columbia County: Slipped from 3 to 2 sales—still minimal, but not absent
Hood River County: Zero new construction sales in Q3 2025 (same as last year)
Builder retreat is widespread, but not absolute. Even Columbia managed a couple of closings. The broader trend, however, is clear: new construction is shrinking, and resale inventory is doing the heavy lifting.
CUMULATIVE DAYS ON MARKET
This chart tracks average Cumulative Days on Market (CDOM) for single-family homes in the Portland Region across July, August, and September—comparing Q3 2024 to Q3 2025. The trend is subtle but consistent, homes are taking slightly longer to sell:
July: 40 → 45 days
August: 46 → 55 days
September: 53 → 56 days
The sales cycle is stretching, but not stalling. A 5–6 day increase per month suggests buyers are more deliberate, and sellers are adjusting expectations. This isn’t a freeze—it’s a pause. For appraisers, longer CDOM doesn’t disqualify comps, but it does signal a shift in market tempo worth noting in commentary.
MISC STATS
Before concluding our overview of the Portland Region as a whole, let’s look at some miscellaneous stats:
The crown for highest price per square foot in the Portland Region during Q3 2025—at $1,646.65/SF—belongs to a lakefront property on Oswego Lake. The home sold for $8,500,000, spans 5,162 sq. ft., and includes four bedrooms, six full bathrooms, and one half bath on a 0.26-acre lot. Photos of the property are currently available online and may be viewed here.
The lowest price per square foot was a fixer in Willamina, Oregon (Yamhill County). This 119-year-old home measures 2,005 sq. ft. on a 0.12-acre lot. Photos of the property are currently available online and may be viewed here.
The oldest home to sell in Q3 2025 was a 145-year-old residence in Portland’s Homestead neighborhood. It features three bedrooms, one-and-a-half bathrooms, and is 1,608 sq. ft. Photos of the property are currently available online and may be viewed here.
The largest home sold during Q3 2025 was a sprawling 13,379 sq. ft. estate in West Linn, Oregon, set on 20.18 acres beside the Oregon Golf Club. The home itself was massive—but even more impressive, it came with a shop building that was larger than the house. The property sold for $6,500,000 after 299 days on market. An exterior photo of the property may be viewed here.
The smallest home to sell was a 426 sq. ft. cabin in Scappoose, Oregon, nestled on 1.4 acres. Photos of the cozy property are currently available online and may be viewed here.
Let’s wrap up this post with a quick look at the six individual counties that make up the Portland Region. We’ll examine them in order of largest to smallest number of sales.
Multnomah County Q3 2025 Stats
Multnomah County contains most of the City of Portland. (Very tiny portions of the City of Portland are located in Clackamas and Washington counties.) The following table summarizes important metrics for Multnomah County:
Multnomah County posted 1,768 single-family sales in Q3 2025, up slightly from 1,719 the year prior. Total sales volume rose to $1.13 billion, a 3.9% increase year-over-year. The average sales price nudged up to $637K, while the median price settled at $555K. Key trends:
CDOM increased from 40 to 45 days, signaling a slightly slower sales rhythm.
Average lot sizes shrank, down 7.2%, reflecting tighter urban parcels.
New construction dropped sharply, from 91 to just 47 sales—a 48% decline.
The core market (< $1M) remained dominant, accounting for 91% of sales and 81% of dollar volume. Prices were flat, with the average holding at $564K, and CDOM rising from 37 to 42 days.
The luxury market (≥ $1M) grew in volume, with 159 sales (up 14%) and $218 million in total sales (up 13%). Despite the growth, the average price dipped slightly to $1.37 million, down about $100,000 from the prior year. CDOM edged up to 79 days, roughly two days longer than in Q3 2024.
Luxury homes also came with significantly larger lots. In Q3 2025, the average lot size for luxury properties was about 0.75 acres, compared to 0.23 acres for homes in the core market segment.
Washington County Q3 2025 Stats
Washington County contains many properties with a Portland address that are outside official city limits and are under county control. The following table summarizes important metrics for Washington County:
Washington County recorded 1,349 single-family sales in Q3 2025, down slightly from 1,395 the year prior. Total sales volume fell 6.3% to $924 million, and the average price declined to $685K, down about $22K from Q3 2024.
CDOM jumped from 43 to 54 days—a notable slowdown in buyer urgency.
Average lot size shrank by over 34%, reflecting denser development patterns.
New construction dipped from 280 to 245 sales, but still represents a major share of activity.
Despite the dip in volume, Washington County remains a hub for new builds. The following map highlights active clusters:
In the core market (< $1M), Q3 2025 saw 1,254 sales, down slightly from 1,270 in Q3 2024. Total sales volume fell to $797 million, down from $819 million the year prior. The average price slipped to $636K, about $9K lower than Q3 2024. CDOM rose from 43 to 54 days, and average lot size tightened from 0.26 to 0.23 acres.
The luxury market (≥ $1M) contracted more sharply. Q3 2025 recorded 95 sales, down from 125 in Q3 2024, with total volume falling to $127 million, compared to $167 million last year—a 24% drop. The average price held steady at $1.33M, but CDOM rose significantly, from 47 to 61 days. Lot sizes also dropped, from 3.5 acres to 2.1 acres, suggesting fewer estate-style properties and more high-end infill.
Clackamas County Q3 2025 Stats
Clackamas County, while comprised of some urban cities, has many rural portions and houses on acreage lots. Commercial and hobby farming is common throughout the county. The following table summarizes important metrics for Clackamas County:
Clackamas County posted 1,153 single-family sales in Q3 2025, up from 1,096 in Q3 2024. Total sales volume rose 8% to $949 million, and the average price increased to $823K, up about $22K year-over-year.
CDOM rose from 50 to 55 days, indicating a modest slowdown in buyer urgency.
Average total square footage increased by 2.6%, suggesting a slight shift toward larger homes.
New construction declined, with 114 sales, down about 10% from the 127 recorded in Q3 2024.
In the core market (< $1M), Q3 2025 saw 954 sales, up from 919 in Q3 2024. Total volume rose to $613 million, compared to $578 million the year prior. The average price increased 2.2% to $642K, and CDOM rose from 46 to 51 days.
The luxury market (≥ $1M) also expanded. Q3 2025 recorded 199 sales, up from 177 in Q3 2024, with total volume reaching $336 million, up from $300 million. The average price dipped slightly to $1.69M, and CDOM held steady at around 72 days.
Yamhill County Q3 2025 Stats
Yamhill County is known for its wineries and other agricultural products. The following table summarizes important metrics for Yamhill County:
Yamhill County recorded 248 single-family sales in Q3 2025, down from 298 in Q3 2024. Total sales volume fell 15% to $151 million, though the average price rose slightly to $607K, up about $10K year-over-year.
CDOM held steady, dipping slightly from 68 to 66.5 days.
Average PPSF increased by 1.7%, reaching $311/SF.
New construction dropped sharply, with just 18 sales, down from 67 last year.
In the core market (< $1M), Q3 2025 saw 226 sales, down from 279 in Q3 2024. Total volume fell to $120 million, compared to $151 million the year prior. The average price declined to $530K, a 2% dip from Q3 2024, and median price dropped from $510K to $481K.
The luxury market (≥ $1M) grew modestly in volume but softened in pricing. Q3 2025 recorded 22 sales, up from 19 in Q3 2024, with total volume rising to $30.7 million, up from $27.5 million. However, the average price fell to $1.40M, down from $1.45M the year prior—a 3.5% decline. The median price rose slightly, from $1.23M to $1.24M, but CDOM surged from 111 to 182 days, suggesting longer marketing times and slower absorption for high-end listings.
The following is a visual snapshot of the Yamhill market:
Each yellow dot represents a closed sale. While most transactions clustered below the $800K mark, a few high-end sales pushed past $2 million, underscoring the county’s growing luxury presence—even as overall volume declined.
Columbia County Q3 2025 Stats
While this county is 688 square miles it only has a population of approximately 54,000 people. The county is known for timber and wood products. The following table summarizes important metrics for Columbia County:
Columbia County recorded 128 single-family sales in Q3 2025, up from 114 in Q3 2024. Total sales volume rose 10.8% to $63 million, even as the average price dipped slightly to $492K, down about $7K year-over-year.
Average PPSF jumped 10.6%, reaching $293/SF—a notable gain for a rural market.
CDOM held steady, rising just one day to 63.
New construction remained minimal, with just 2 sales, down from 3 last year.
In the core market (< $1M), Q3 2025 saw 127 sales, up from 114 in Q3 2024. Total volume rose to $61.9 million, up from $56.9 million. The average price declined to $487K, a 2.3% dip, and median price slipped from $474K to $470K.
The luxury market (≥ $1M) made a rare appearance. Q3 2025 included one sale at $1.13 million, marking a shift from zero luxury closings in Q3 2024. The home sold at 94% of its original list price, with a lot size over 4 acres and 3,297 sq. ft. of living area.
The following is a visual snapshot of the Columbia market:
Each yellow dot represents a closed sale. Most transactions clustered below the $600K mark, with a single outlier crossing the $1 million threshold—Columbia’s lone luxury sale for the quarter.
Hood River County Q3 2025 Stats
Hood River is the second smallest county in Oregon by area at 533 square miles. The population is estimated to be about 24,000 people. This county is known for its fruit products and outdoor recreational activities.
Hood River County recorded 36 single-family sales in Q3 2025, up a single sale from Q3 2024. Total sales volume rose 24% to $31.2 million, driven by a surge in high-end activity. The average price jumped to $867K, up 20.6% year-over-year.
Average PPSF rose 7.2%, reaching $426/SF.
CDOM increased from 47 to 59 days, reflecting slower absorption.
Average home size expanded by 16%, now over 2,140 sq. ft. on average.
In the core market (< $1M), Q3 2025 saw 25 sales, down from 32 in Q3 2024. Total volume fell to $17.2 million, compared to $20.9 million the year prior. The average price rose to $689K, a 5.4% increase, while median price dipped slightly from $685K to $675K.
The luxury market (≥ $1M) surged. Q3 2025 recorded 11 sales, up from just 3 in Q3 2024, with total volume tripling to $14 million, up from $4.23 million. Despite the volume spike, the average price declined to $1.27M, down from $1.42M last year. Median price also fell, from $1.36M to $1.13M, and CDOM ballooned from 20 to 74 days, suggesting slower turnover despite increased activity.
The following is a visual snapshot of the Hood River market:
Each purple dot represents a closed sale. Most transactions clustered below $1.5 million, with a single outlier near $2 million in mid-July—highlighting the county’s expanding but volatile luxury tier.
That completes our look at the Portland Region Q3 2025 single-family market!
Thanks for reading—I hope you found a useful insight or an unexpected nugget along the way. If you enjoyed the post, please consider subscribing for future updates.
Question: Do you think Q4 2025 will follow the same trajectory, or will it outperform Q4 2024?
CODA
Are you an agent and wonder why appraisers always do “x”?
A homeowner with questions about appraisal terminology or methodology?
If so, feel free to reach out—I enjoy connecting with market participants and am always happy to help where I can.
And if you’re in need of appraisal services, we’d be glad to assist.
We are about to close out Q3 2025, but let’s take a look back and see how the Portland Region single-family detached home market performed in Q2 2025 versus Q2 2024.
Let’s define the Portland Region as the following six counties: Columbia, Clackamas, Hood River, Multnomah, Washington, and Yamhill—essentially all counties contiguous with Portland’s home county of Multnomah, plus Yamhill.
DATA HOUSEKEEPING
The information in this post will be based on properties that sold on the open market, defined as listed in RMLS, the primary multiple listing service for the Portland Region. The data was parsed with tools created by the blog author to weed out/correct, among other things, listing errors and misclassifications (e.g. land or condominium sales in the single-family category). RMLS has a listing category, SNL, “Sold Not Listed,” that allows agents to put properties that were sold off market into the database. Those properties have been excluded from the following analyses.
Portland Region 2025 Q2 Overview
Q2 2025 was nearly the same in most important metrics. The following table compares the two quarters:
Not a lot changed from Q2 2024 to Q2 2025. The total sales volume dollar amount was slightly down in the second quarter versus the previous year. The 3.9% drop almost perfectly mirrors the drop in the number of sales.
The average home price in Q2 2025 was $694,796, which is almost identical to the average price in Q2 2024. A nearly $700,000 price tag continues to challenge median-income earners in the Portland region.
The composition of the sales remained steady; the average lot size decreased by 5.5% and the average home size barely changed at all. Homes were, on average, about 48 years old. There was a noticeable drop in the number of new construction sales (approximately 16%)—the high interest rate environment continues to weigh on the market.
Distressed sales, as a whole, were almost the same in the second quarter of 2025 compared to the second quarter of 2024, with one fewer occurrence. REOs and short sales represented just 0.73% of the market.
Let’s parse the data with some visuals.
SALES VOLUME
The following is a treemap of sales volume in the Portland Region for Q2 2025:
Multnomah County had the most sales, representing nearly 39% of the market. Clackamas, Multnomah, and Washington counties (the “Big Three” of the area) comprised the bulk of the housing market, with nearly 91% of the volume.
Sales volume was near parity in April, but Q2 2025 lagged behind Q2 2024 for the months of May and June:
Note: The y-axis starts at 1,300 to allow better examination of monthly differences.
SALES PRICE
Q2 2025 was just a sliver below Q2 2024 for April and May and took the crown in June. The average of the three months only placed Q2 2025 about $1,000 below Q2 2024:
Note: The y-axis starts at $600,000 to allow better examination of monthly differences.
NEW CONSTRUCTION
New construction was 10.5% of the overall market in Q2 2025:
2024 beat 2025 in most counties, with only trivial exceptions coming from Columbia and Hood River:
Washington County dominated the new construction market at 54%. Clackamas County took second place with about 23% of the market and Multnomah came in third at 16%. The Big Three accounted for 93% of the new construction market.
CUMULATIVE DAYS ON MARKET
The average cumulative days on market was up in Q2 2025 two months out of three compared to Q2 2024. The overall rise was modest, averaging approximately 2 additional days for the quarter compared to the previous year:
MISC STATS
Before concluding our overview of the Portland Region as a whole, let’s look at some miscellaneous stats:
The most expensive home that sold on the open market in the Portland Region was a lakefront property located on Oswego Lake. The home sold for $4,500,000, has four bedrooms, four full bathrooms and one half bathroom, is on 0.19 acres and is 6,337 sq. ft. Photos of the property are currently available online and may be viewed here.
The least expensive home was a fixer located in Amity, a city in Yamhill County. The home has rented at the time of the sale, but no interior photos were published online. The home is 1,528 sq. ft. and has a 0.21-acre lot. Exterior photos of the property are currently available online and may be viewed here.
The largest home sold in Q2 2025 was a 9,500-sq. ft. residence that is currently used as a bed and breakfast. The Franziska Haus B&B has 10 bedrooms and 10 bathrooms. The property is situated in Dundee, Oregon, providing convenient accommodations for visitors looking to do wine tasting in the area. The B&B could potentially be used as a private residence with little to no alteration of the interior. Photos of the property are currently available online and may be viewed here.
The smallest home sold in Q2 2025 was a property in Dayton, Oregon. The home is 460 sq. ft. and sits on 4.9 acres. The home is really just a functional apartment attached to one of the two large shops on the site. It is very likely the new owner will be constructing a new residence and turning the apartment into an accessory dwelling unit. Photos of the property are currently available online and may be viewed here.
The property with the largest lot that sold in Q2 2025 is located in North Plains, Oregon. The property has a 90.9-acre lot with a 4,335 sq. ft. home. Most of the lot is sloped and heavily forested. Photos of the property are currently available online and may be viewed here.
Finally, the last miscellaneous Q2 2025 stat belongs to a home that took a cumulative total of 1,047 days to sell. The home is 6,403 sq. ft. and has a 0.85-acre lot. The property is located in an unincorporated part of Multnomah County, south of the City of Portland. The home has good views of the city. The property was listed on 05/19/2022 and was on the market on and off until it sold on 06/06/2025. The initial list price was $3,750,000 and it closed for $2,938,750 as a cash sale. Photos of the property are currently available online and may be viewed here.
Let’s wrap up this post with a quick look at the six individual counties comprising the Portland Region. We will examine them in the order of largest number of sales to the smallest.
Multnomah County Q2 2025 Stats
Multnomah County contains most of the City of Portland. (Very tiny portions of the City of Portland are located in Clackamas and Washington counties.) The following table summarizes important metrics for Multnomah County:
Multnomah County had an increase in the sales volume dollar amount despite the number of home sales being about the same quarter over quarter. The average and median sales prices are up partly due to an increase in the total square footage of homes selling and an average larger lot size. However, even accounting for that influence, Q2 2025 in Multnomah County was stronger than Q2 2024.
New construction was 4.4% of the Multnomah market, which is healthy given how mature the Portland market is; 59% of new construction was in the City of Portland and 30% was in the City of Gresham:
Distressed sales made up less than 1% of the Multnomah market n Q2 2025.
Washington County Q2 2025 Stats
Washington County contains many properties with a Portland address that are outside official city limits and are under county control. The following table summarizes important metrics for Washington County:
The total sales volume dollar amount slipped below $1 billion in Q2 2025, this was due to a slump in sales, with the number of homes sold dropping almost 10%. Average and median prices were essentially unchanged from Q2 2024.
Washington County has the most new construction activity in the Portland Region. While fewer new construction homes closed in Q2 2025 compared to Q2 2024, the new homes comprised the same proportion of the market—nearly 20%.
The following table breaks down the activity by city:
Clackamas County Q2 2025 Stats
Clackamas County, while comprised of some urban cities, has many rural portions and houses on acreage lots. Commercial and hobby farming is common throughout the county. The following table summarizes important metrics for Clackamas County:
The sales volume dollar amount is down 6.3%, which is larger than the decline in the total number of sales (only 2%). Looking at the table, two stats jump out: the average lot size has declined 28% and the number of new constructions is down by over 22%. The change in the sales composition affected the aggregate stats.
New construction activity in Clackamas County places it 2nd in the region. Most of the new sales occurred in four cities: Happy Valley, Estacada, Canby, and Sandy. The following is a map of the new construction activity in Clackamas County:
Yamhill County Q2 2025 Stats
Yamhill County is known for its wineries and other agricultural products. The following table summarizes important metrics for Yamhill County:
The total sales volume dollar amount decreased by 7.5% which parallels the drop in the total number of sales (8.2%). The county experienced a sharp drop-off in new construction (40%) and homes are spending about 13 more days on market to sell. Despite the negative statistics, the average and median prices of homes have increased, indicating that individual homes are performing a bit better than the same quarter last year.
Yamhill’s new construction market is much smaller than Washington, Clackamas, or Multnomah’s in absolute size but is higher proportionally than all save Washington. New homes made up almost 13% of the market. The following is a map of the new construction activity in Yamhill County:
Most sales occurred in the city areas of Yamhill County.
Columbia County Q2 2025 Stats
While this county is 688 square miles it only has a population of approximately 54,000 people. The county is known for timber and wood products. The following table summarizes important metrics for Columbia County:
The total sales volume dollar amount was up over 13% while the total number of sales was up 5.7%. Median and average sales prices also increased, in part due to slightly larger homes on bigger lots selling in 2025 versus its counterpart quarter in 2024. Cumulative days on market climbed nearly 22%, translating to homes taking nearly 16 days longer to find a buyer. Only 2 new construction homes were sold in Q2 2025.
Hood River County Q2 2025 Stats
Hood River is the second smallest county in Oregon by area at 533 square miles. The population is estimated to be about 24,000 people. This county is known for its fruit products and outdoor recreational activities.
The sales volume dollar amount was down almost 18%, which is much higher than the decrease in the total number of sales (8.5%). Much of the decrease can be attributed to smaller homes on smaller lots selling in 2025 compared to Q2 2024. Due to the small market, Hood River often sees more volatility in price and property metrics quarter to quarter.
There was one new construction sale and no distressed sales.
That completes our look at the Portland Region Q2 2025 single-family market!
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Question: Do you think Q3 2025 will be more of the same or will Q3 2025 outperform Q3 2024?
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