July brought us long, warm days — and a shift in the market’s mood. After a spring where buyers had to act fast and sellers held the cards, we’re now seeing more balance. The numbers are clear, but the story they tell is more important.

The Big Picture

• Inventory: Up to 3.7 months, the highest since early 2023. April sat at 3.1 months, May at 3.3, and June at 3.6 — this is part of a steady upward trend.
• Pricing: Median sale price of $555,000, up 0.9% year-over-year but down 2.6% from June. That’s the second consecutive month of MoM price dips — a seasonal cooling signal, but also buyer pushback on pricing.
• Sales Activity: Pending sales down 0.6% YOY and 4.0% MoM; closed sales down 3.4% YOY, barely up from June.

Fallout and Terminations — Reading Between the Lines

RMLS doesn’t publish “deal fallout” as a stat, but the gap between pendings and closings tells the story:

• In July, 92% of pendings closed within the month — better than June’s 88% — but with fewer pendings overall, some contracts are clearly not sticking.
• This pattern started in late spring, when pendings softened while inventory rose, meaning some homes came back to market after inspection, financing, or appraisal issues.
• Fallout is most common in the $400K–$600K range, where financing contingencies dominate, and in markets where condition can mismatch the asking price.
• Cash-heavy upper-tier markets (like Lake Oswego/West Linn) see fewer terminations, but when they happen, it’s usually inspection-driven.
• Inspections may reveal projects that are overwhelming but part of buying not-new construction. This is where we have the conversation with a seller, “Is this a repair request that every buyer will make or something that is specific to this buyer?”  And don’t forget the HGTV Effect.

Year-to-Date (Jan–Jul 2025 vs. 2024)

• New Listings: +4.6%  This is a confirmation that for many owners, life dictates decisions over rates.  Interest rates have not come down significantly but more people are willing to give up those low rates they refinanced into- or don’t have a loan at all.
• Pending Sales: -0.1%
• Closed Sales: +0.3%
• Average Price: +0.8% ($615,700)
• Median Price: +0.9% ($550,000)

Compared to Q1’s across-the-board gains, July looks flatter — we’re no longer in a sharp rebound from December 2024’s downturn. Instead, we’re in a transitional market where each side negotiates harder.  If you took all the sky is falling news headlines you could not glean that our market is basically flat from last year. It is important to note that our area is holding up much better than areas that have heavy concentrations of new construction across the nation.

What This Means for Buyers

• You finally have breathing room. More choices, more leverage in inspection negotiations, and less pressure to waive contingencies.
• Homes that fall out of contract can be opportunity buys — sellers often return to market ready to deal.

What This Means for Sellers

• Price to the market you’re in, not the one from this spring. Buyers now have data and options on their side.
• Watch for buyer hesitancy — a contract isn’t a closing. Keep communication open during escrow, and be prepared for negotiations throughout the transaction.

Local Nuance

• NE Portland saw a small YOY median price drop, while N Portland posted gains — a reminder that “Portland market” is really many micro-markets.
• Lake Oswego/West Linn remains in its own stratosphere, with average prices near $1M and steady demand, even as the broader metro cools.

Bottom Line

July didn’t bring a crash — it brought a pause. Inventory is building, buyers are more selective, and fallout is a reality in some price bands. If you’re strategic, there’s opportunity on both sides: buyers can find better terms, and sellers can still get strong offers if they adapt quickly.

Read the full RMLS Market Action Report