Why Now is a Great Time to Buy a Home in the Portland-Vancouver-Hillsboro Metro Area

The real estate market in the Portland-Vancouver-Hillsboro MSA has shifted significantly in recent years. While rising interest rates have been a concern, there are strong indicators that now is actually a smart time to buy. If you are considering homeownership in this region, here are the key reasons why purchasing now could be beneficial.

Less Buyer Competition and More Negotiating Power

Over the past few years, homebuyers in Portland, Vancouver, and Hillsboro faced intense competition, with bidding wars and homes selling within days. The market has now balanced, offering several advantages to buyers:

Competition has decreased, meaning buyers are less likely to engage in bidding wars.
Sellers are more willing to negotiate and may offer closing cost assistance, interest rate buydowns, or price reductions.
Homes are staying on the market longer, giving buyers more time to evaluate their options rather than making rushed decisions.

Home Prices Are Stabilizing, But Could Rise Again

Home prices have settled after rapid appreciation in 2020-2022, making it a favorable time to buy before potential future increases.

The median home price in Vancouver, WA is around $525,000, while Hillsboro and Beaverton homes typically range from $500,000 to $550,000.
Many experts predict that demand will continue to outpace supply in growing communities like Camas, Felida, and Sherwood, leading to future price increases.
Owning a home is a strong hedge against inflation, ensuring stable housing costs compared to rising rents.

Mortgage Rate Flexibility and Future Refinance Opportunities

Interest rates have risen from historic lows, but buyers still have financing options that make homeownership feasible.

Many lenders offer adjustable-rate mortgages (ARMs) with lower initial rates, providing short-term savings.
Sellers in Wilsonville, Ridgefield, and Hillsboro are increasingly willing to help buyers by offering rate buydowns.
Buyers who purchase now can refinance later when rates drop, allowing them to secure a lower payment in the future.

Renting is Becoming More Expensive Across the Region

Rental prices have continued to rise throughout the Portland metro area, making homeownership a more financially stable option.

The average rent for a two-bedroom apartment in Vancouver, WA is now over $2,000 per month.
Beaverton and Hillsboro have experienced steady rent increases due to strong employment demand from companies like Intel and Nike.
Unlike renting, homeownership builds equity over time, allowing buyers to invest in their own financial future rather than paying a landlord.

Increased Inventory Means More Choices for Buyers

One of the biggest challenges in recent years was the lack of available homes. Now, inventory levels have improved, giving buyers more options.

There are more resale homes on the market in areas like Ridgefield, Sherwood, and Happy Valley.
New construction communities in Hillsboro, Wilsonville, and Camas are offering builder incentives, such as closing cost assistance and price reductions.
With less urgency to make immediate offers, buyers can take the time to find a home that truly fits their needs.

Washington State Offers Tax Benefits Compared to Oregon

For those deciding between buying in Portland or across the river in Vancouver, Washington offers several tax advantages.

Washington has no state income tax, allowing homebuyers to keep more of their earnings compared to Oregon residents.
Property taxes in Clark County, WA are often lower than those in Multnomah County, making it a more affordable long-term investment.
Many Vancouver residents work in Portland while enjoying the financial benefits of living in Washington.

Tax Benefits of Homeownership

Owning a home provides valuable tax advantages that renters do not receive.

Homeowners can deduct mortgage interest from their taxable income, lowering their tax liability.
Property tax deductions help reduce overall tax burdens for homeowners.
When selling a primary residence, homeowners may qualify for a capital gains tax exemption of up to $250,000 ($500,000 for married couples) if they have lived in the home for at least two years.

Final Thoughts: The Best Time to Buy is When You Are Ready

Many potential buyers are waiting for interest rates to decrease or for home prices to drop further. However, market conditions are always changing, and trying to time the market perfectly is nearly impossible.

If interest rates drop in the future, home prices are likely to rise again.
Those who buy now can always refinance later if rates decrease.
Real estate remains one of the best long-term investments, and the sooner you buy, the sooner you start building equity.

Get Started on Your Homeownership Journey

If you’re ready to explore homeownership in the Portland-Vancouver-Hillsboro metro area, now is the time to take the next step. Contact us today to discuss your home-buying goals and financing options.