If a condo has been on the market for 119 days without selling, what should you suspect first? The price might be an issue, but recently, the resale of condos in Portland has been taking longer than before.

As of the first quarter of 2026, the median price of condos in the Portland area is $325,000, which is a 1.5% decrease from the previous quarter. In the same quarter, there were 511 transactions, and the average time on the market increased by 8% to 119 days. This information comes from the Portland Appraisal Blog's first-quarter 2026 condo market report. Management fees are also on the rise. HOA fees have recently increased by 13%, typically ranging from $200 to over $600 per month, according to the same report.

One reason for the slowdown in resales is the lending threshold. So, why is it becoming harder to get loans? If the percentage of delinquent units exceeds 15%, or if the rental unit ratio is excessively high, or if the reserve fund is insufficient compared to the budget, or if there are pending lawsuits, the building is classified as a non-warrantable condo. Starting in 2026, this assessment will be further tightened, raising the minimum reserve fund requirement to 15% and eliminating the simplified review process known as Limited Review. Even if a unit is in excellent condition, if the building receives a non-warrantable designation, many potential buyers will be unable to secure financing, resulting in a smaller pool of buyers.

What should be checked next? The reserve fund and history of special assessments. In recent years, rising reinsurance costs and litigation risks have led to an increase in condo insurance premiums nationwide, often resulting in higher management fees or special assessments. Following the Surfside collapse, Florida mandated structural inspections and full reserve funding for buildings over three stories through SB 4-D, while Oregon has its own reserve regulations. According to Oregon law, management associations that received a reserve study after January 1, 2023, must renew it every five years, and those that received it before that must complete their initial reserve study by January 1, 2024. However, there is no confirmed regulation mandating regular structural safety inspections.

How should one view condos for rental investment purposes? Condos generally have less management burden than single-family homes, making rental operations easier. However, in a market like Portland where HOA costs are rising, net yields can fluctuate based on the pace of management fee increases. Before purchasing, it seems prudent to review the financial statements, budgets, reserve study results, and any litigation or dispute history recorded in the management meeting minutes to mitigate risks at the time of resale.

The third question to consider is about reinsurance costs and insurance premiums. In recent years, the trend of rising condo insurance premiums due to litigation risks and increasing reinsurance costs has continued nationwide, which can be passed on as management fee increases or special assessments at the time of the management association's master insurance renewal. In a market like Portland, where HOA fees have already risen by 13%, it seems wise to budget with the possibility of another increase at the next insurance renewal. Since the financial documents required by Fannie Mae and Freddie Mac also include master insurance policy information, it is advisable to request and verify this information before purchasing.

In summary, when considering condos for investment in Portland, it is essential to keep in mind that resales may take longer and to check the warrantable status, reserve condition, and rental restrictions. For families with demand in the Korean school district, school assignments can vary by address, so it is advisable to verify this directly before purchasing. Tax and rental regulations can differ by county, so this article does not constitute investment or legal advice, and it is recommended to consult with a real estate professional and loan officer before finalizing any contracts.