Last updated: September 2025
Quick Answer
The Albany OR housing market is “somewhat competitive” in 2025, with a median home price of $359,000 and 29 days on market.
First-time buyers can afford homes in Albany by using FHA loans with 3.5% down, Oregon Bond Program below-market rates, USDA zero-down loans for rural Linn County areas, and down payment assistance programs offering up to $15,000, making Albany more affordable than Salem, Eugene, or Portland for homeownership.
The Albany OR housing market is shifting, and if you’re planning to buy your first home in 2025, now’s the time to understand how the landscape is evolving—and how to navigate it. With home prices holding steady and competition rising just slightly, first-time buyers in Linn County are discovering creative paths to homeownership, even amid affordability challenges.
Let’s break down the current market conditions, pricing trends, and strategies that can help you afford a home in Albany this year.
Get pre-approved for purchase with GO Mortgage.What is the housing market like in Albany, Oregon, right now?
As of Q3 2025, the Albany, OR real estate market is considered “somewhat competitive.” That means well-priced homes typically receive multiple offers, but you won’t see the frantic bidding wars of a seller’s market.
Here are key metrics you should know:
- Median home price in Albany: $359,000
- Average days on market (DOM): 29
- Price per square foot: $223
- Inventory level: Low to moderate
These numbers reflect a stable, steady market where preparation and strategy matter more than speed or luck. With the right financing tools, buyers can still secure a home in zip code 97321 or elsewhere in the Willamette Valley.
Are Albany home prices rising or falling?
Albany home prices have increased slightly year-over-year, rising about 3% compared to fall 2024. This modest growth reflects the region’s solid economic base and rising demand from both local and relocating buyers.
Experts forecast continued gradual appreciation into 2026, especially for updated homes in sought-after neighborhoods. However, affordability remains a concern as income growth hasn’t kept pace with price increases.
Is Albany a good place for first-time home buyers?
Yes—especially when compared to other parts of Oregon. First-time home buyers in Albany benefit from:
- A lower median price than Salem, Eugene, or Portland
- Access to zero-down and low-down payment loans
- Multiple down payment assistance (DPA) programs
- Local lenders who specialize in first-time buyer loans
To get a clear picture of your affordability, try our mortgage payment calculator or explore your loan options with a loan comparison calculator.
What loan types are available in Albany?
If you’re buying a home in Albany, you may qualify for one of the following loan programs:
- FHA loans – Ideal for first-time buyers with lower credit scores and minimal down payments
- VA loans – For veterans and active-duty service members
- USDA loans – Zero-down options for homes in eligible rural areas of Linn County
- Conventional 97 loans – Just 3% down for qualifying buyers
- Oregon Bond Program – Offers below-market rates and cash assistance
Need help choosing? Get pre-approved today and explore which option fits your needs.
How long does it take to sell a home in Albany?
The average DOM (Days on Market) is currently 29 days—down from 35 this time last year. Well-priced homes under $400K move especially fast, particularly when staged well and marketed with professional photos.
For buyers, this means moving quickly once you’ve found a home you love. Having a pre-approval letter from a local lender will make your offer more competitive.
What’s considered a competitive offer in Albany?
In a somewhat competitive market like Albany:
- Offers at or slightly above asking price are common
- Contingencies (like inspections or appraisals) may be waived by aggressive buyers
- Seller concessions (like covering closing costs) are less common, but possible on homes sitting longer than average
To stand out, consider using a 2-1 buydown strategy or asking your lender about rate lock options to make your monthly payment more affordable.
What about affordability in Albany, OR?
Housing affordability in Albany, OR, is a growing concern for first-time buyers. The price-to-income ratio has risen, and many buyers are spending over 30% of their income on housing.
Strategies to improve affordability include:
- Applying for Oregon down payment assistance programs
- Using seller credits to buy down your mortgage rate
- Exploring homes in Albany priced under $300K
- Locking in rates before expected increases
You can also work with a lender to review your DTI (Debt-to-Income) ratio, explore PMI-free options, or adjust your LTV (Loan-to-Value) by increasing your down payment.
What assistance is available for Albany home buyers?
If you’re a first-time home buyer in Albany, consider these programs:
- Oregon Bond Residential Loan Program: Offers fixed interest rates and up to $15,000 in down payment assistance
- Home Advantage Program: For moderate-income households
- Chenoa Fund: Offers second mortgage assistance to cover your down payment
- USDA Loans: May cover 100% of your home purchase with no down payment
Check eligibility with GO Mortgage’s experienced loan team. We’ll walk you through every option.
Should I lock my mortgage rate now?
Mortgage rates remain volatile in late 2025, and most experts suggest locking your rate once you’re under contract.
If you’re still shopping, ask about mortgage rate float-down options or lender credits that can offset potential increases.
We can also help you explore points-based strategies, such as buying down your rate upfront to save in the long term.
Albany, OR, housing market FAQs
A: The median home price in Albany, OR, is $359,000 as of Q3 2025, with homes averaging 29 days on market and priced at $223 per square foot in this somewhat competitive market.
A: First-time buyers in Albany can use FHA loans with 3.5% down, VA loans for veterans, USDA zero-down loans for eligible rural Linn County areas, Conventional 97 loans with 3% down, and the Oregon Bond Program for below-market rates.
A: Albany home buyers can access up to $15,000 in down payment assistance through the Oregon Bond Residential Loan Program, plus additional help from the Home Advantage Program and Chenoa Fund second mortgage assistance.
A: Yes, the Albany OR housing market offers better affordability than Salem, Eugene, or Portland, with access to multiple low-down payment loans, down payment assistance programs, and local lenders specializing in first-time buyer financing.
A: In Albany’s somewhat competitive market, offers at or slightly above asking price are common, contingencies may be waived by aggressive buyers, and well-priced homes under $400K move quickly within the 29-day average market time.
How to buy a home in Albany in 2025
Navigating the Albany OR real estate market requires both preparation and flexibility. Here’s your action plan:
- Get pre-approved with a lender who understands local trends
- Use affordability calculators and explore programs tailored to first-time buyers
- Make smart offers that balance price, contingencies, and timing
- Lock in your rate when market conditions shift
- Leverage assistance programs that stretch your budget further
Need a guide to get started? Connect with a GO Mortgage specialist today—we’re here to help you move from renting to owning with confidence.