Real Estate Report For Washington County & Hillsboro Reveals Who Is Hot, & Who Is Not!

Today I am sharing my editor’s hat of the Herald with my real estate broker hat. About once a month, I will report on real estate here. I rarely self-advertise or promote my “Real Job,” which is that of a Principal Broker who owns and operates Dirk Knudsen Real Estate -MORE Realty Hillsboro in historic Downtown Hillsboro. This is my 43rd year as a real estate broker, making me the most experienced broker in the valley.

We are in historically challenging times. Massive layoffs at Intel and other companies have people around the water coolers talking market collapse. Others fear they will never be able to buy a home, and the rates are too high. But what is the truth? Is the market here healthy? Is the bottom falling out? The key to understanding these questions lies in the numbers and the meta-trends at play.

Is the Real Estate Market Hot or Cold?

Here’s a concise update on Areas 149 (Bethany/NW Hills), 150 (Beaverton/Aloha), and 152 (Hillsboro/Forest Grove) for July 2025, based on the RMLS Market Action Report:

HIllsboro (Oregon) Westside Real Estate Report for 2025 — Hillsboro (Oregon) Westside Real Estate Report for 2025

Area 149 (NW Washington County) – Sluggish to Down
Active listings held steady at 391 homes, with 101 pending sales (down 5.6% vs. July 2024) and 82 closings. The average sale price sits at $763,200, while homes are taking about 66 days to move—longer than the metro average of 52 days. Year-to-date pending sales are off 10.5%, suggesting a modest pullback in buyer activity north of the river, even as prices remain relatively strong.
- Average sale prices have inched up by 0.6% compared to the same period last year, rising from $753,600 to $763,200—reflecting very modest appreciation in this market.
- Dirk’s Take:- We are talking about Bethany and Cedar Mill. The hottest real estate market for decades now is finally cooling. With an incomparable location, low taxes and crime, and the best schools, the area is experiencing a cooling trend. These are neighborhoods where Intel employees love to live. We are seeing very sluggish prices and rising inventory as displaced workers need to sell. Not only that, but the median price in 149 was in the $800K range, with sales driven by employment growth and a 3% increase in money. Look for this market to cool off 1-5% as the next 6 months move along and inventory grows.
Area 150 (Beaverton / Aloha)
In Beaverton/Aloha there were 244 new listings and 153 closed sales, but pending sales dropped 7.3% year-over-year. The average sale price is $563,000, with 47 days on market—slightly under the metro average. Year-to-date pending sales are down 7.7%, though closings are holding near last year’s pace. This points to solid demand but a cooling in buyer urgency in this suburban market.
- Beaverton/Aloha saw average prices climb 1.0%, from $554,900 to $563,000 year-to-date, indicating mild upward pressure on values even as buyer activity cools slightly.
- Dirk’s Take: This market is holding its own. The average sales prices are being held up by new construction sales in South Beaverton, where builders are offering starter interest rates in the 4s to keep inventory moving. Look for housing prices to hand around, but incentives have to be given by sellers to keep things moving.
Area 152 (Hillsboro / Forest Grove)
Hillsboro/Forest Grove saw 224 new listings, 171 closings, and pending sales up 3.8% vs. last July. Homes here averaged $533,800 and moved in 47 days—again quicker than the metro overall. Year-to-date closings are essentially flat, but that bump in pending activity suggests renewed interest on the west side. With inventory around five months’ supply, buyers still have choice, yet mild price growth and faster turnover hint at a market tilting back toward sellers.
- Hillsboro/Forest Grove’s average sale price is up 0.3%, moving from $525,000 to $533,800, a very slight gain that suggests stable pricing amid balanced inventory.
- Dirk’s Take: Hillsboro was expected to take a beating over the Intel layoffs. Well, that has not happened, but those thousands of job losses have not manifested themselves into listings yet. The Bethany market, as noted above, is home to a significant % of Intel employees I have worked with, and it is just a known fact – that is where they live. Hillsboro has its massive South Hillsboro projects, and we are seeing those savvy builders move to more attached townhome projects to keep pricing down, and to slow down their housing starts. I think Hillsboro as a Livable City is going to survive this market adjustment as well or better than anyone. Having said that, the last four homes I have sold in the City have seen the average square footage price drop from $310 to about $280 per square foot to get a sale done.

Get the entire August 2025 Housing Report Right Here for the Portland Metro Region.- Courtesy of RMLS Report

READ THE WHOLE REPORT: PortlandMetro August 2025

Bottom line: Where do we go from here?
Across these three west-side areas, Beaverton/Aloha is cooling off modestly, NW Washington County shows softer buyer traffic and longer days on market, while Hillsboro/Forest Grove is picking up steam with rising pendings and quicker sales. Prices remain healthy in all three, but inventory levels—especially in Hillsboro—mean neither side has overwhelming leverage.

Other Factors:

Economic Uncertainty and Tariffs – Let’s face it. Oregon is a blue-blue state, and the White House hates us. Oregon is closely tied to Canada and the Far East. We have to fight out battles here economically to hold on to our businesses and continue to promote livability and the many great things about being here.
The 3% Interest Rate Factor – In the previous decade, we enjoyed a historic period of 2-4% interest rates. That made homes 1/2 as expensive as they are now from a monthly payment perspective. As a result, tens of thousands of homes in our Region that may need to be sold will never be sold. That will mean that markets will not react as they would have in the past.
Rents: I believe they are dropping. That will hot landlords a little, and they may sell to dislodge those homes if their returns are not what they desire. Suitable for home buyers!
Net Migration: Portland and Multnomah County are experiencing a significant population decline. Is Washington County headed for a similar fate? I do not think so. Intel layoffs may hit us, and people will leave. I believe people are still moving to Washington County. We have a lot to be proud of, and as I have written, this next decade needs to be the People’s Era- Hillsboro 3.0. We need to settle in and focus on controlling costs, reducing our utility and housing expenses, and developing new businesses.

What this market means for the Sellers: Sharpen your pencils – plan for negotiations if you’re a seller. DON’T BE GREEDY, or you will not sell. Hire a highly experienced broker – someone who has navigated the market through 1-2 downward cycles. Every broker looks like a genius in a hot market. Find one who survived and thrived in 2007-2012. That is the toughness and marketing savvy you need to hire.

What does this market mean for Buyers? It is a good time to be shopping and buying homes. Any perfect home with lots of great features will still sell relatively fast. Some homes have been listed for a long time because the broker or seller was not in tune with the current market trends. You also need to find an experienced broker who knows how to work hard to get you a great package of price, closing costs, and a good deal. There are very few steals on the market, so don’t expect to come in and make a purchase. Get a great lender – we have them on our team. Loan programs and rates are looking better. Between now and the Holidays, there will be some good options. If you’re looking for a home, now is a good time to start making your move, with affordability and good negotiations being the key.

All the best to everyone in the housing market, all the buyers and sellers, and the hardworking business professionals who make this entire housing market work!