By Lily Ray Wyss, January 7, 2025
2024 was a doozy of a year for real estate and 2025 doesn’t seem like it will be any different. This coming year will have many unpredictable factors, a new administration, possible tariffs, interest rate fluctuations, etc.. But let’s recap the year we had and do a little bit of forecasting for 2025 so you can go into the year prepped with the context of the past year and an inkling of what is to come.
2024 Recap:
This is the worst year in real estate we have had in decades when it comes to the number of sales.
In 2024 we saw half of the sales we had in 2008 during the great recession.
If you were attempting or successfully bought or sold a home in 2024 and felt it was hard, your feelings were valid and you were not alone. Both locally and nationally it was a tough time for the world of real estate.
At a talk with a local economist, Noah Blanton, he noted that we have been in this down cycle for almost 3 years at this point so we are likely nearing the end and should see growth in the new year.
Based on the numbers he noted that locally we have been at the bottom of the growth cycle so likely we can only go up from here.
Some good news from this past year: All Oregon Counties saw positive migration growth including Multnomah County in 2024. Inbound migrations’ ability to match or surpass outbound migration has suffered the last few years due to pandemic-era trends. It is a great sign of what is to come that we are now seeing positive growth locally as this will stimulate demand.
2025 forecast of what to come:
There are many variables that will come into play as we talk about what to expect in 2025 but here are some things we can predict:
Interest rates:
Originally it was said that we would see 4 interest rate drops next year, now it is said we should see 2 moderate interest rate drops in 2025. Keyword moderate. Likely we will not see any drastic drops in rates, but should see some stable fluctuation and some slight relief.
In the talk with Noah Blanton, he said “Interest rates will not be a straight up or down. We have a bumpy road ahead of us for the next 6 months”.
No matter what happens with rates we should likely see a more robust market this year relative to 2024.
There has been a lot of pent-up demand and as folks get more comfortable with 6-7% rates becoming the reality we will likely see activity return to our market.
We often see a fresh spurt in activity here in January as everyone returns from the holidays and gets serious about their goals and we should see activity stabilize as we head toward the Spring.
Spring is predicted to be busy.
For home buyers:
If you don’t find your dream home this winter you will see a lot of new homes come to market as the flowers start to bloom.
Just know this will also bring a lot of competition from other buyers. Many buyers think Spring is the only time to buy so getting ahead of the busy market can be a good call and is a conversation I am having with a lot of clients.
Many of my clients are choosing to actively search now to avoid competition on homes and to get a good deal. And for many, we are getting them incredible deals. Closing costs credits to buy down their interest rates, competitive terms on repairs, and solid prices. This will be less available come Spring when you may have 3+ other buyers vying for the same house.
For home sellers:
This is your time to prep. If you are planning to sell your home come Spring your time to start listing preparation is now. The more time you have the better.
Some tasks you can start now while you are stuck in your home this winter anyway:
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Declutter your home.
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Pack away any items that are not used frequently.
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Take care of small repairs.
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Coordinate bids and schedule work with contractors while their schedules are less busy.
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Start getting educated on the local real estate market and the micro-market you are selling in.
If this all sounds overwhelming no worries I will be here to help you every step of the way. When it comes to selling your home it’s never possible for us to meet too early.
If you are wanting to sell sooner than the Spring that is totally possible too. You will have less buyers available but the ones out there are serious. With the right prep we can get you amazing results. The winter market can be slow, but the homes that are prepped well and have the right marketing are still getting getting under contract quickly and in some cases are getting multiple offers.
Looking to make a move in 2025? I am here for you. Reach out HERE and we can set up a time to chat.
Lily Ray Wyss
Broker | OR
She/Her
I love Portland. This city, and its surrounding areas, in my opinion, are the perfect place to call home. We have the amazing ability to put our toes in the ocean, snowboard, and visit some of the world's best breweries all in one day. Our food scene is extremely diverse and prolific. Want to see a show? Comedy, music, theater, etc all have growing, well-supported scenes here. I love selling homes in Portland and more importantly educating my clients and community on how amazing this city is and how you can own a piece of this beautiful state and call it home.
Follow me on Instagram to see my new finds and spotlights on the best places to eat, play, and be entertained in the area. And for information on buying/selling and current home market data. Follow at: @lilyrayresidential
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