Dundee, Oregon Neighborhood Guide: Homes, Prices & Selling in 2026

Dundee is a small Yamhill County city of about 3,200 people on Highway 99W, two miles southwest of Newberg. Redfin reported a median sale price of $534,646 for the three months ending August 2026, up 0.4% from a year earlier, with homes selling in about 14 days. It sits at the foot of the Dundee Hills wine region.

Dundee is a small Yamhill County city of about 3,200 people on Highway 99W, two miles southwest of Newberg. Redfin reported a median sale price of $534,646 for the three months ending August 2026, up 0.4% from a year earlier, with homes selling in about 14 days. It sits at the foot of the Dundee Hills wine region.

Where Dundee is and how it works

Dundee is an incorporated city in Yamhill County, located about two miles southwest of Newberg. Its 2020 Census population was 3,238, and the city covers about 1.35 square miles. Highway 99W runs through the middle of town, connecting Dundee to Newberg, Sherwood, and Tigard to the northeast and McMinnville to the southwest.

Downtown sits between the Willamette River and the Dundee Hills, so many homes have views of vineyards on one side and the Cascades on clear days on the other. As with other small towns on this side of the valley, a Dundee mailing address can include rural properties well outside city limits, so confirm the jurisdiction, zoning, and services (city water and sewer versus well and septic) for any specific address.

Prunes, walnuts, and hazelnuts

Dundee is named for Dundee, Scotland, the birthplace of William Reid, who came to Oregon in 1874 to establish the Oregonian Railway. The first post office opened as Dundee Junction in 1887, named for a planned railroad bridge across the Willamette River that was never built. It was renamed Dundee in 1897. The city was incorporated in 1895, according to the Oregon Secretary of State.

For decades, Dundee was farm country. According to the Chehalem Valley Chamber of Commerce, the town was well known for its prunes and walnuts and has been called the hazelnut capital of the world. Nut processing still operates along Highway 99W at the south end of town.

What homes cost in 2026

Dundee prices have held roughly flat over the past year, and homes have been selling faster.

• Median sale price: Redfin reports $534,646 for the three months ending August 2026, up 0.4% year over year.
• Price per square foot: Redfin reports a median of $355, up 13.0% from a year earlier.
• Average home value: Zillow reports $593,042 as of September 30, 2026, down 0.1% over the year.
• Pace: Redfin says homes sold after about 14 days on market, compared with 22 days a year earlier, and 14 homes sold in August 2026, up from six.
• Pricing: Redfin reports homes sold for about 100.3% of list price on average.

The two sources measure different things. Redfin reports homes that actually sold, while Zillow estimates the value of all homes, including larger hillside and acreage properties. With a small number of sales each month, a few higher-end sales can move the numbers noticeably.

Mortgage rates remain a major factor. The 30-year fixed averaged 7.32% as of October 22, 2026, down from 7.40% the week before and up from 6.19% a year earlier, according to Freddie Mac. At that level, buyers compare carefully, so price and condition decide which homes sell quickly.

Housing types and neighborhoods

Dundee offers more variety than its size suggests. According to Homes.com, streets around downtown are lined with ranch homes, Cape Cods, and craftsman houses on smaller lots, while the north side of town features larger homes on bigger properties, including multi-acre lots with room for workshops and animals. Homes.com reports a median year built of 1993.

That creates distinct markets:

1. In-town homes. Smaller lots close to downtown restaurants and tasting rooms, often the entry point for buyers.
2. Newer subdivisions. More recent construction with modern floor plans, compared closely against nearby resales.
3. Hillside and acreage properties. Larger homes with views and space, where wells, septic, and land use rules matter as much as square footage. Homes.com reports these range from about $570,000 to $1.6 million.

Dundee is served by Newberg-Dundee Public Schools. For school details, check the district directly or the Oregon Department of Education.

The Dundee Hills wine region

Dundee's modern identity comes from the hills above town. According to the Oregon Wine Board, winemaker David Lett planted the first Pinot noir in the Dundee Hills in 1966, establishing The Eyrie Vineyards. Other pioneers soon cleared nearby south-facing slopes, and the region drew international attention after an Eyrie Pinot noir placed among top Burgundies at a 1979 tasting in France.

The Dundee Hills American Viticultural Area was established in 2004. Today, Highway 99W through Dundee is lined with restaurants and tasting rooms, and the winding roads above town lead to some of the best-known wineries in the state. For buyers, that combination of small-town living and wine country scenery is the main draw.

Selling a Dundee home in 2026

Owners who bought in Dundee years ago often have meaningful equity, which gives them choices about timing, whether that means moving up, downsizing, or relocating.

What matters most when selling here right now:

1. Price from nearby sales, not citywide averages. An in-town ranch home and a hillside property with vineyard views are separate markets.
2. Move quickly when you are ready. With homes averaging about two weeks on market, have repairs, photos, and disclosures done before you list.
3. Prepare rural property details. For homes outside city limits, have well, septic, and land use documents ready so buyers stay confident.
4. Address what inspectors flag. Roofs, drainage, older electrical, and deferred maintenance deserve attention before listing.
5. Know your net. Estimate payoff, closing costs, and moving costs before you choose a price.

Kent spent about 20 years in construction before real estate, which helps sellers decide which repairs are worth making and which are not.

Next steps

Dundee pairs a farm town history with one of Oregon's best-known wine regions, steady prices, and homes that are selling quickly. Whether you are buying in or weighing a sale, recent sales on your street are the best guide.

Call or text Kent at (503) 784-1065, or reach out through our contact page.

Kent Bounds & Kionna SakhoeunRE/MAX Equity Group · Serving Washington County & the Portland Metro area. Call or text (503) 784-1065.