Portland Appraisal Blog

Portland Real Estate Appraisal Brief – Thursday, December 4, 2025: National Home Sales Show Modest October Increases

National existing-home sales rose 1.2% and pending sales rose 1.9% in October 2025, providing context for Portland metro appraisers amid elevated regional prices.

Portland Oregon skyline at dusk with NAR Existing-Home Sales & Pending Sales October 2025 Report banner – context for national housing trends and Portland metro appraisals — Portland Oregon skyline at dusk.
Photo: Razvan Orendovici via Wikimedia Commons (CC BY 2.0)

National Home Sales Overview

In October 2025, pending home sales across the U.S. rose 1.9% from September, reflecting a modest uptick in contract signings amid lower average mortgage rates(6.25%) for a 30-year fixed loan. Year-over-year, however, pending sales edged down by 0.4%. This monthly gain marks a continuation of buyer activity amid fluctuating economic signals.

Existing-home sales also increased, climbing 1.2% month-over-month to a seasonally adjusted annual rate of 4.10 million units. On a year-over-year basis, existing sales were up 1.7%, with single-family homes comprising the bulk at 3.71 million units annually. Condominium and co-op sales contributed 390,000 units, showing stronger monthly growth at 5.4%.

The national median existing-home price stood at $415,200 in October, representing a 2.1% increase from the previous year. Single-family homes had a median price of $420,600, while condos and co-ops were at $363,700. These price levels underscore ongoing affordability challenges in certain markets.

NAR Pending Home Sales Index October 2025 infographic – national pending sales rose 1.9% month-over-month with regional breakdowns and Portland Oregon metro market context — NAR Pending Home Sales Snapshot – October 2025
Infographic courtesy National Association of REALTORS®

Regional Variations & Inventory

Regionally, pending home sales showed mixed results. The Midwest led with a 5.3% monthly increase and a 0.9% year-over-year gain, attributed to better affordability. The South followed with a 1.4% monthly rise and a 2.0% annual increase. The Northeast gained 2.3% month-over-month but declined 1.0% year-over-year. In contrast, the West saw a 1.5% monthly decrease and a 7.0% annual drop, highlighting price pressures in higher-cost areas.

For existing-home sales, the Midwest again outperformed with a 5.3% monthly increase to 990,000 units annually, up 2.1% year-over-year. The South edged up 0.5% monthly to 1.86 million units, with a 2.8% annual gain. The Northeast held steady monthly at 490,000 units but rose 4.3% year-over-year. The West declined 1.3% monthly to 760,000 units, down 2.6% annually. Median prices varied regionally, with the Northeast at $503,700 (up 6.5% year-over-year), Midwest at $319,500 (up 4.6%), South at $362,300 (up 0.3%), and West at $628,500 (up 0.1%).

NAR Existing-Home Sales October 2025 infographic – national median price $415,200, 4.4 months supply, regional sales and price trends relevant to Portland metro residential appraisals — NAR Existing-Home Sales Housing Snapshot – October 2025
Infographic courtesy National Association of REALTORS®

Inventory and Market Conditions

Total housing inventory dipped slightly to 1.52 million units in October, down 0.7% from September but up 10.9% from the prior year. This equates to a 4.4 months’ supply at the current sales pace, a minor decrease from September’s 4.5 months but an improvement from 4.1 months a year ago. These figures indicate a gradual easing in supply constraints nationally.

NAR Chief Economist Lawrence Yun noted that sales advanced despite external factors, with buyers responding to lower mortgage rates averaging 6.25% for a 30-year fixed loan. He emphasized regional disparities, with the Midwest and South benefiting from more affordable inventory, while the Northeast and West face supply shortages and elevated prices. Yun also highlighted decelerating rents potentially aiding inflation control and supporting further rate cuts by the Federal Reserve.

Implications for the Portland Region

These national trends offer context for stakeholders in the Portland metro area, where market dynamics may echo Western region challenges such as higher prices and softer sales growth. For perspective, the median close price for single-family detached residential properties in the Portland region held at $600,000 through Q3 2025. While this is significantly above the national October median of $415,200, it is slightly below the broader West region’s October median of $628,500, suggesting Portland is performing comparably on price relative to its regional peers. For detailed local metrics through September, refer to our Portland region Q3 2025 market update.

Sources & Further Reading

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 and wonder 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.

Portland Real Estate Appraisal Brief – Wednesday, December 3, 2025: FHFA Raises 2026 Conforming Loan Limit to $832,750

FHFA raises the 2026 conforming loan limit to $832,750. In Q3 2025 alone, 99 Portland-area sales (70 conventionally financed) closed $806,501–$832,750 and will now avoid jumbo status.

Picture of Constitution Center (400 7th Street SW, Washington, D.C.) – headquarters of the Federal Housing Finance Agency (FHFA). — Constitution Center (400 7th Street SW, Washington, D.C.) – headquarters of the Federal Housing Finance Agency (FHFA).
Photo: Ajay Suresh via Wikimedia Commons (CC BY 2.0)

FHFA Announces 2026 Conforming Loan Limit Adjustments

The Federal Housing Finance Agency (FHFA) has released its annual conforming loan limit values for 2026, effective January 1 for mortgages acquired by Fannie Mae and Freddie Mac. The baseline limit for one-unit properties increases to $832,750 — up $26,250 from the 2025 figure of $806,500 — reflecting a 3.26% rise in the national House Price Index from the third quarter of 2024 to the third quarter of 2025.

All counties in Oregon and the Portland-Vancouver-Hillsboro MSA remain at the baseline limit; no high-cost ceiling applies in our region.

Appraisal Implications for the Portland Region

In Q3 2025 alone, 99 residential properties in the six-county region closed between $806,501 and $832,750. Of those, 70 were financed conventionally — transactions that would have required jumbo terms in 2025 but will now stay fully conforming in 2026.

Across the full quarter (4,682 total SFR detached-class closings):

85.48 % (4,002 sales) closed under $900,000
Only 14.52 % (680 sales) closed at or above $900,000
The single busiest upper-tier band was $800,000 – $899,999 with 367 sales

Market Context from Q3 2025 Actual Sales

Price Band	# of Sales	% of Total Market	Avg Close Price	Avg CDOM
$800k– $899k	367	7.84 %	$847,313	51 days
$806,501 – $832,750	99	2.11 %	$820,864	49 days
≥ $900k	680	14.52 %	≈ $1,340,000+	72+ days

For appraisers, lenders, realtors, estate planners, and attorneys, the 2026’s higher limit removes friction from one of the region’s most active price segments and keeps 85+% of transactions comfortably conforming.

Sources & Further Reading

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 and wonder 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.

Portland Real Estate Appraisal Brief – Tuesday, December 2, 2025: HUD Rule Changes Prompt Lawsuit by Oregon and Washington

Oregon and Washington are among 20 states suing HUD over rule changes to the Continuum of Care grant program, which could cut millions in Portland housing funds.

Picture of HUD headquarters building. — *HUD Headquarters*
*Via Wikimedia Commons*

Federal Housing Funding Rule Faces Regional Legal Challenge

A coalition of approximately 20 states, including Oregon and Washington, has filed a lawsuit against the U.S. Department of Housing and Urban Development (HUD) over recent, sweeping changes to the $3.9 billion federal Continuum of Care (CoC) grant program. This legal action, filed on November 25, 2025, challenges a dramatic overhaul of funding priorities and conditions for the primary federal initiative supporting homelessness assistance.

The CoC program historically allocated nearly 90% of its funding to permanent housing solutions, a strategy known as “Housing First.” The new HUD Notice of Funding Opportunity (NOFO) for Fiscal Year 2026, however, drastically reduces the maximum funding available for permanent supportive housing to 30%, risking the displacement of an estimated 170,000 households nationwide. For the Portland region, this shift is especially critical, as Oregon alone stands to lose approximately $39 million in federal housing support, a figure cited by the Oregon Department of Justice. Washington State, which receives about $120 million annually in CoC grants, sees a substantial portion flow to its counties bordering the Portland metro area, including Clark County.

State attorneys general argue that HUD violated Congressional intent and the Administrative Procedure Act by imposing abrupt and sweeping changes without proper public rulemaking, as detailed in the official press release from the Washington State Attorney General. Beyond the funding cuts, the lawsuit cites new controversial conditions, including requirements for providers to mandate services as a precondition to housing and penalize jurisdictions that do not enforce strict anti-camping bans—policies that conflict with current practices in many Pacific Northwest cities. The national scope of the lawsuit underscores the destabilizing nature of the change.

Appraisal Implications

For certified residential appraisers working in the Portland metro area—encompassing counties like Multnomah, Washington, and Clackamas in Oregon, and Clark in Washington—the outcome of this lawsuit has material, though indirect, implications for property valuations, especially in the affordable and multifamily housing sectors.

Residential Properties

While CoC funds do not typically subsidize owner-occupied single-family homes, the potential displacement of tenants from permanent supportive housing could put additional strain on the already-tight rental market.

Supply and Demand Pressure: The loss of federally funded permanent supportive housing units means hundreds, if not thousands, of vulnerable residents in the region could be forced to seek alternative, unsubsidized rental housing. This influx of demand would further reduce the availability of affordable rental stock and could indirectly increase overall market rents for entry-level apartments. Higher rents, in turn, can put upward pressure on the price of smaller, owner-occupied starter homes as the rent-to-own cost dynamic shifts.
Neighborhood Stability: Appraisers must remain attuned to shifts in neighborhood stability and market dynamics. A rapid increase in unsheltered homelessness—which local leaders contend is a likely outcome of these funding cuts—can affect neighborhood marketability and, consequently, perceived value in nearby residential areas.

*Tents along a city right-of-way. HUD’s homelessness-prevention programs aim to reduce street camping by stabilizing at-risk households*

Commercial / Multifamily

The most direct impact is felt within the multifamily and commercial properties designed for social services and affordable housing.

Valuation of Supportive Housing Assets: Appraising existing permanent supportive housing (PSH) properties, often structured as low-income housing tax credit (LIHTC) assets or specialized nonprofit facilities, is directly tied to their funding stream. A loss or severe reduction in the reliable federal CoC operating subsidies introduces significant risk to the financial stability of these projects. Appraisers must consider:
- Net Operating Income (NOI) Volatility: The immediate uncertainty regarding project renewal grants makes the NOI for these specialized assets highly volatile. This increased risk translates to a higher capitalization rate (Cap Rate) being applied by investors, which lowers the overall valuation of the property.
- Highest and Best Use: A sudden and substantial policy change could force a re-evaluation of a PSH property’s Highest and Best Use if the specialized funding model is deemed permanently unviable. While unlikely to lead to immediate conversion, the risk of a future shift to conventional market-rate housing should be noted, particularly for properties nearing the end of their affordability period.

Market Context

The regional housing market operates with razor-thin margins for affordability. The Portland metro area, which includes Multnomah, Clackamas, and Washington counties, has already approved significant local measures, such as the Metro Supportive Housing Services Measure, to address the crisis. However, these local funds are intended to supplement, not fully replace, federal support. Washington State’s Clark County, which is also part of the Vancouver-Portland metro area, relies heavily on the federal structure to support its local Continuum of Care grants.

The pending lawsuit highlights the deep interdependency between federal policy, local funding initiatives, and the stability of the housing market in the Pacific Northwest. Real estate professionals—including lenders, estate planners, and realtors—must closely monitor the legal proceedings, as the outcome will dictate the long-term viability of a substantial portion of the region’s dedicated affordable and supportive housing supply.

Sources & Further Reading

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 this lawsuit will be resolved soon, or will it drag on for most of the year?

CODA

Are you an agent in Portland and wonder why appraisers always do “x”?

A homeowner with questions about multifamily income properties, GRMs, or income calculations?

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.

Appraisal Video Short: Portland Housing Market Q3 2025

Portland metro single-family market—Q3 2025 in under 60 seconds:

→ Full Q3 2025 market report

CODA

Are you an agent in Portland and wonder 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.

Portland Real Estate Appraisal Brief – Monday, December 1, 2025: How Oregon Rent Caps and Eviction Rules Impact Inherited Rental Properties

Oregon’s 9.5% rent cap for 2026 combines with Portland’s relocation assistance rules, creating distinct valuation considerations for rental properties across the metro area.

House depicted sitting on a stack of $1 bills. Used to illustrate inheritance of a home.

When I appraise 2–4 unit residential income properties in the Portland metro area for estate, trust, or probate purposes, the single largest value depressant is almost always a long-term tenant paying far below-market rent. Oregon’s statewide rent-stabilization law and Portland’s additional relocation-assistance requirements combine to make it expensive and slow for heirs to reset those rents after the original landlord passes away.

How Below-Market Rents Survive Inheritance

Oregon law limits rent increases to once every 12 months and caps the allowable increase at 7% plus the Consumer Price Index (CPI), with an overall hard cap of 10%. For calendar year 2026, this limit is 9.5%. Certain units—such as regulated affordable housing and buildings less than 15 years old—are exempt. No-cause evictions are prohibited after the tenant’s first year of occupancy.

Many inheritors lack the cash or desire to front relocation fees and perform renovations, so the low-rent tenancy often remains in place for years. (I go into more detail in my discussion of Oregon rent control laws and the overlays the City of Portland adds.)

Appraisal Impact: Contract Rent vs. Market Rent

In the income approach for 2–4 unit residential properties, appraisers derive a gross rent multiplier (GRM) by dividing comparable sales prices by their monthly (or annual) scheduled rents, typically resulting in a three-digit figure (e.g., 165–195 in most Portland metro submarkets at present). Appraisers may also cross-check conclusions with a direct capitalization approach when income and expense data are reliable.

That GRM is then applied to the subject property’s actual contract rent. When contract rent lags 20–40% behind market—a common range in inherited portfolios— the indicated value is often proportionally lower than the same property delivered vacant or at market rent.

Example: A duplex with market rent of $2,700 per side ($5,400/month total, $64,800/year) but current contract rent of $2,000 per side ($4,000/month total, $48,000/year) and a reconciled GRM of 180 yields:

Market-rent value: $5,400 × 180 = $972,000
Contract-rent value: $4,000 × 180 = $720,000
Result: $972,000 – $720,000 = $252,000 → Difference of approximately 26% solely due to the locked-in tenancy.

Graphic depicting a duplex. On one side a green up arrow depicts market rent and an estimated value of $972,000. On the other side a red arrow pointing down depicts below market rent and an estimate of $720,000.

For a real-world illustration, consider a recent North Portland fourplex sale from 2024. This 1966-built property sold for $768,000 with actual gross scheduled income of $58,026 annually ($4,835 monthly average across four 2-bedroom units on month-to-month leases). The listing projected $66,120 in gross income—a 14% increase—highlighting below-market rents with “opportunity for growth.” Using the market-derived monthly GRM of approximately 159 (consistent with the listing’s implied metrics), the contract-rent value aligns with the sale price, while the projected rents suggest a potential value around $875,000, representing a 12–14% discount due to the existing tenancies and regulatory hurdles to realizing that upside.

RMLS multifamily listings display scheduled rents in the public fields, and confidential remarks may note “long-term tenants – below-market rents” as an upfront acknowledgement to a potential purchaser. Savvy buyers and appraisers run the numbers immediately and adjust offers (and appraised values) accordingly.

The Challenge Scales with Unit Count

Duplexes remain the most manageable. Under Oregon law, a new owner or an immediate family member moving in is a “Qualifying Landlord Reason” for termination. This creates a realistic path to market rent within 12–18 months. Crucially, Portland’s mandatory relocation assistance is generally NOT required if the new owner occupies one unit of a duplex as their primary residence and terminates the tenancy of the second unit. This key exception significantly lowers the cost and risk of resetting the rent on a duplex in the city.
Triplexes and fourplexes are far harder. While an owner or immediate family member can still reclaim a unit (or units) in a triplex or fourplex for occupancy, this move-in termination does trigger the full Portland relocation assistance payment for each unit vacated. The cost of reclaiming multiple units often becomes the practical—and high-cost statutory—constraint. As a result, at least one protected tenant and their below-market rent often remains in place, sometimes indefinitely.

Regulatory Scenario	Duplex (Owner-Occupied)	Triplex / Fourplex
State Law Termination (Owner Move-In)	Allowed (with 90-day notice)	Allowed (with 90-day notice)
Portland Relocation Fee Required?	NO (Exempt under PCC 30.01.085.G.3)	YES (Full fees apply)
Cost to Recoup 1 Unit	Minimal (Time/Legal fees)	$4,200 – $4,500+ (plus legal fees)

Practical Guidance for Heirs and Estate Professionals

Inherited small income properties with long-term, below-market tenants routinely trade at meaningful discounts to physically identical buildings that are vacant or leased at market rates. The regulatory environment creates a durable “locked-in tenancy discount” that survives the death of the original landlord.

Appraisers must document both contract and market rent, then apply the market-derived GRM to the realistic income stream the property actually produces under current law. Understanding this dynamic early avoids surprise when the date-of-death value comes in lower than expected.

In many cases, keeping the stable tenant and modest cash flow is the path of least resistance—and still the highest and best use. Rents can be gradually raised each year until all units are in alignment with the rest of the market, provided increases comply with the annual cap and notice requirements; in Portland, certain increases trigger relocation assistance.

If you are an estate planning attorney, personal representative, or heir handling a 2–4 unit rental in Multnomah, Washington, Clackamas, Yamhill, Columbia, or Hood River counties, reach out. These scenarios are a routine part of my practice.

Sources & Further Reading

PortlandAppraisalBlog discussion on Oregon 2026 Rent Cap: Post
PortlandAppraisalBlog discussion on Oregon Rent Laws vs. Portland’s Tenant Protections: Post
Oregon Residential Landlord and Tenant Act (full chapter): ORS Chapter 90
Rent Increase Limits & Notice Requirements: ORS 90.323
Annual Rent Cap Calculation: ORS 90.324
Termination of Tenancy without Tenant Cause: ORS 90.427
Portland Renter Additional Protections (City Code 30.01.085): Official City Page
Portland Mandatory Relocation Assistance Brochure (PDF): Download
Portland Housing Bureau Relocation Rules & Exemption Form: HOU-3.05
Oregon Law Help – Eviction & Termination Notices: Guide

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: How have the current rent control laws affected your portfolio?

CODA

Are you an agent in Portland and wonder why appraisers always do “x”?

A homeowner with questions about multifamily income properties, GRMs, or income calculations?

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.