The nationwide housing market slowdown is also taking place in the Lake Oswego area, some local real estate agents say.

According to the National Association of Realtors, contract signings in the United States fell from March to April by the largest percentage (6.3) since September 2022, and mortgage applications are also dipping. Locally, real estate agents are seeing homes remain on the market for longer than usual, creating a stockpile.

“When inventory goes up and demand remains constant then it feels naturally slower — but when demand goes down and inventory goes up, it feels more dramatic,” said Justin Harnish of Harnish Properties.

What’s behind the trend?
Some of the factors that may be leading to this ebb, according to the NAR and local agents, include the continually high mortgage interest rates, struggles unique to the Portland economy like Nike layoffs and Intel’s struggles, as well as uncertainty and concern around the tariffs put forth by the Donald Trump administration.

“It’s common sense that consumer confidence drives the market and right now we’re in a period of time where there are many things going on locally and throughout the world that are affecting people’s understanding of what the future means,” said Terry Sprague, owner of Luxe | Forbes Global Properties.

Interest rates loom large, according to the NAR.

“At this critical stage of the housing market, it is all about mortgage rates,” said NAR Chief Economist Lawrence Yun, referring to rates that have been volatile but that have hovered around 6.5% on average in 2025, in a press release. “Despite an increase in housing inventory, we are not seeing higher home sales.”

A buyer’s market?
Local agents see the current situation as an opportunity for buyers and a worthy challenge for sellers.

Sprague noted that buyers have the chance to strongly negotiate and ask for things and price points that they wouldn’t under normal market conditions.

“If I am a buyer right now, I would strongly suggest selecting a property you like and writing an offer. I think sellers are more negotiable when there is more uncertainty,” Sprague said.

For sellers, Sprague is seeing mostly people who are needing to move and sell their homes due to life events. This is a far cry from the boon market seen a few years ago.

“It’s a fun market. In 2021-22, it was a fast food real estate market. People were running through the drive-thru and saying, ‘I’ll take a $3 million house and a fry.’ To do the same production to meet my goals this year, we are technically working twice as hard,” Sprague said.

In turn, Will Fendon of Fendon Properties said sellers need to address needed repairs and make their homes look as nice as possible.

“In some neighborhoods, it’s a price war and a beauty contest — and sellers have to win both” he said.

Still, Fendon said he’s seen the high end of the Lake Oswego housing market remain relatively healthy, with lavish homes selling for historically high price points. At the upper echelon of the housing market, Fendon said mortgage interest rates aren’t as much of a factor.

“It’s the tale of two markets. We are also seeing some of the highest sales that have ever occurred in this town on the lake. There were three public sales between $10 million and the $14 million range, and another sale that was rumored to be in the $20 million range,” he said.

And the agents — who have navigated recessions and housing market stagnation before — were confident that the market would kick back up.

“In my 25 years experience, I have learned that buyers can’t stay on the sidelines forever and they will come back,” Harnish said.