‘Tis the season to be spooked, but as we move into a balanced housing market there is no reason for buyers or sellers to be scared away.

Why is that?

Over the past few years, the real estate market in Lake Oswego and the greater Portland metro has swung between extremes: first a red-hot seller’s market during the pandemic, then fears of slipping into a buyer’s market. Right now, we’re seeing signs of a more balanced market, which is healthier overall — for both buyers and sellers.

Here’s what makes a balanced housing market so positive and how it differs from past conditions.

What Is a Balanced Housing Market?

A balanced housing market is one where supply and demand are relatively even. Typically, when there are 5-6 months of inventory (that is, the time it would take to sell all homes currently listed, if no new ones were added), the market is neither favoring buyers strongly nor giving all the power to sellers. Right now, there are 5.8 months of inventory in the Lake Oswego housing market.

Benefits:

• For buyers:
  • More choices of homes, more time to make decisions without being squeezed into over-bidding or waiving inspections.
  • More negotiation power — on price, repairs, closing costs.
  • Better, more transparent disclosures, and less risk of overpaying.
• For sellers:
  • Realistic pricing becomes effective — sellers can expect to get close to, though not wildly above, list.
  • Less pressure to rush; homes still sell in a reasonable time and sellers have time to plan their next move.
  • More qualified, serious buyers (rather than lots of speculative offers).
  • Better retention of equity gains from prior years.

What the Extremes Looked Like

• Hot seller’s market (pandemic era, roughly 2020-22): Inventory dropped to very low levels (often less than 2 months), multiple offers, bidding wars, waived inspections, many homes selling above list price, sometimes sight unseen. Buyers often felt forced to act fast, sometimes at unfavorable terms.
• Buyer’s market (strict): Oversupply of homes, long days on market, many price reductions, sellers competing with each other, needing to make concessions, sometimes reducing prices significantly.

What to Watch Moving Forward

• Inventory movement — Will active listings continue to rise, or tighten again?
• Price stability — Are sellers holding firm or starting to reduce list prices?
• Days on market — A rising average (e.g. 50+ days) suggests cooling.
• Sale-to-list ratio — When this drops below ~98–99 %, it’s a signal the market is softening.

Final Thoughts

For Lake Oswego, a balanced housing market is a welcome middle ground between pandemic-era extremes and deep buyer dominance. It gives both buyers and sellers more agency, more predictability, and fewer forcing decisions. For now, it feels like a more mature market is taking shape—one where value, integrity, and pacing matter again.

Let us help you navigate the Lake Oswego housing market. Give us a call – we’d love to put our 35+ years’ experience living and working in Lake Oswego and the Portland metro area to work for you.

Kevin Costello kevin.costello@cascadehasson.com 503.939.9801

Riley Costello riley.costello@cascadehasson.com 971.322.6205