If you’ve been watching the Portland metro real estate market and felt confused by what you saw in late December, you’re not alone. Holiday weeks almost always distort the data, and when you only look at one snapshot in isolation, it’s easy to draw the wrong conclusions.
That’s why instead of focusing on a single week, I took a step back and looked at what actually happened over the last three weeks combined — the weeks ending December 21, December 30, and January 4. When you view them together, a much clearer and more useful story emerges for both buyers and sellers.
This update covers the Portland Oregon metropolitan area, including Washington, Multnomah, and Clackamas counties in Oregon, as well as Clark County, Washington.
The Holiday Slowdown Was Real — But It Wasn’t a Warning Sign
Late December always brings a slowdown. Buyers pause travel plans, sellers delay listing decisions, and lenders, title companies, and contractors all operate at reduced capacity. That pattern showed up clearly this year.
The week ending December 21 still showed relatively normal market activity. But by the week ending December 30, closings dropped, new listings nearly disappeared, and pending activity softened. On paper, it looked like the market was losing momentum.
In reality, it was simply the calendar doing what it does every year.
What matters more than the slowdown itself is what happened immediately afterward.
As soon as we moved into the first week of January, activity rebounded sharply. Closings jumped significantly, new pending deals improved, and buyer engagement returned. That rebound tells us demand didn’t disappear during the holidays — it paused and then picked right back up.
This is exactly why context matters when interpreting real estate data, and why working with a great realtor in Portland who understands seasonal patterns can make such a difference.
Inventory Quietly Tightened Over Three Weeks
One of the most important trends over the last three weeks was inventory — and it didn’t behave the way many people expected.
Over the final weeks of December, active listings declined meaningfully. Some listings expired at year-end. Others were pulled temporarily by sellers planning to relaunch later. And many potential sellers simply waited until after the holidays to list.
By the first week of January, inventory was down more than 9% compared to two weeks earlier.
For buyers, this is a key shift. Even though prices are lower than they were a year ago, selection actually tightened coming into the new year. That means the best homes stand out faster, and well-priced listings can still attract strong interest.
For sellers, lower inventory creates opportunity — but only if you use it correctly. Reduced competition helps homes that are prepared and priced properly. It does not protect homes that are overpriced or poorly presented.
Buyer Demand Didn’t Disappear — It Delayed
Pending sales data over the three-week period tells an important story.
Total pending deals declined slightly during the holiday weeks, which is normal. But new pending deals — the most reliable indicator of current buyer intent — rebounded in early January.
That rebound confirms what many buyers were already feeling: people weren’t abandoning the market, they were waiting. Once the holidays ended, decisions resumed.
This matters because it tells us buyer demand is still present, but buyers are more deliberate. They’re watching pricing closely, paying attention to days on market, and willing to act when a home clearly makes sense.
This is not an impulsive market — it’s a strategic one.
Price Reductions Spiked — But the Bigger Trend Is Healthier Than Last Year
One of the most eye-catching numbers in early January was the spike in price reductions. At first glance, it looked alarming.
But when you look across all three weeks, a clearer explanation emerges.
Reductions tend to stack up during the holidays. Sellers often wait until after Christmas and New Year’s to make pricing changes, so when the market reopens, those reductions appear all at once.
More importantly, even with the spike, price reductions are still meaningfully lower than they were at the same time last year.
That tells us this is not a panic market. Instead, it’s a market that is quietly correcting overpricing while still rewarding homes that are priced accurately from the start.
Prices Are Down Year-Over-Year — But Negotiating Power Is Balanced
One of the most misunderstood dynamics in the current Portland real estate market is the relationship between prices and negotiation.
Yes, both average and median sale prices are running lower than they were a year ago. That’s good news for buyers and a reality sellers need to acknowledge.
But at the same time, homes are still selling very close to their list price when they’re priced correctly. On the median, homes are selling at 100% of asking price.
That’s not a contradiction — it’s a signal.
What’s happening is that list prices are doing more of the work. Homes that start at the right number tend to sell without dramatic discounts. Homes that start too high sit, reduce, and eventually sell closer to their corrected price.
This is why pricing strategy matters more than optimism right now.
Days on Market Show a Stable, Thoughtful Buyer Pool
Across the three-week period, days on market remained remarkably consistent with last year.
Buyers are taking time to evaluate options. They’re comparing homes carefully. But they are still moving forward when the right property appears.
This supports the idea that we’re in a balanced, rational market — not a frozen one and not an overheated one.
What This Means for Buyers
For buyers — especially first-time buyers — this market offers a valuable combination:
Prices are lower than last year
Competition is selective, not overwhelming
Negotiation opportunities exist on overpriced or stale listings
The key is preparation. Buyers who understand the market, monitor price history, and act decisively on the right home are in a strong position.
This is where having a great realtor in Portland who knows how to identify value — and when to move quickly — can make a meaningful difference.
What This Means for Sellers
For sellers, the last three weeks have reinforced a critical truth: the market rewards accuracy.
Homes that are priced right, presented well, and marketed strategically are still selling close to list price. Homes that miss the mark are being corrected quickly.
For move-up and move-down sellers, it’s also important to remember that selling and buying happen in the same market. While sale prices may be lower than peak years, purchase prices are also softer — which can create opportunity if the move is planned carefully.
The Bottom Line for the Portland Metro Market
When you zoom out across the last three weeks, the story becomes clear:
The holiday slowdown was temporary
Buyer demand remains present
Inventory tightened heading into January
Pricing discipline matters more than ever
This is not a market driven by hype or fear. It’s a market driven by strategy, preparation, and informed decision-making.
If you want help understanding how these trends affect your specific neighborhood, your price range, or your plans for 2026, I’m here to help. Whether you’re buying, selling, or just watching the market closely, having a great realtor in Portland who understands both the data and the nuance can make all the difference.
You can always find weekly market updates and resources at PDXHomesforSale.com, email me directly at Lauren@PDXHomesforSale.com, or call or text 503-683-1885. I’m here to provide any residential real estate services or information you need.