Seattle Housing Market Watch – January 15, 2025

By Zach McDonald, Real Property Associates

Welcome to the first Seattle Housing Market Watch of 2025. Each week—excluding monthly market update weeks—I break down what’s happening right now in the King and Snohomish County housing markets. Rather than focusing heavily on pricing trends, these weekly updates highlight real-time changes in inventory, pending sales, closed sales, and mortgage rates to help buyers and sellers understand how the market is moving week by week.

New Listings Rise Compared to This Time Last Year

As 2025 gets underway, new listings are beginning to pick up. While inventory remains low overall, year-over-year numbers are noticeably stronger.

• New listings, same week last year: 399

• New listings this week: 504

In addition, 66 homes returned to the market, compared to just 30 during the same week in 2024. While January is typically a slow time for new inventory, this year is showing more activity and early momentum.

Buyer Activity Starts Strong With Higher Pending and Closed Sales

Despite higher mortgage rates, buyer activity is slightly stronger than last year.

• Pending sales last year: 522

• Pending sales this week: 556

Closed sales also increased:

• Closed sales last year: 256

• Closed sales this week: 283

These numbers show buyers are still engaging the market even as affordability remains challenging.

Mortgage Rates Remain Elevated Going Into 2025

Mortgage rates continue to play a major role in shaping buyer demand. Predictions for 2025 suggested rates might be trending downward by now, but recent inflation data has increased uncertainty.

Last year on January 16, the average 30-year fixed rate was 6.77% (Mortgage News Daily).
Today, January 15, 2025, the average rate is 7.13%, slightly lower than the recent high of 7.40%, but still elevated.

Although there have been brief dips, inflation concerns and Federal Reserve signals have kept rates from falling meaningfully. The expectation right now is that 2025 may closely resemble 2024, with potential rate improvements later in the year if inflation cools.

How Today’s Rates Compare to Recent Years

Many homeowners who bought in 2020–2022 secured historically low mortgage rates—often between 3% and 5%. Even those who purchased at the end of 2022 benefited from lower rates and softer prices. Today’s buyers face nearly the same home prices but significantly higher monthly payments due to current rates near 7%.

For recent buyers with higher-rate loans, the possibility of refinancing into the 5% or low 6% range remains a major hope. For those who bought in 2022 or earlier, the long-term advantage of lower monthly payments—combined with continued price appreciation—places them in a strong financial position.

What to Expect as 2025 Begins

Early data suggests that 2025 is shaping up similarly to 2024. Inventory is slowly building, buyers remain active, and mortgage rates continue to influence pacing and competition. If inflation comes under control, rates may ease into the low sixes later in the year, which would likely stimulate buyer demand and improve affordability.

If you’re considering buying or selling in King or Snohomish County this year, now is a great time to start planning. As always, I’m here to help you navigate the market with confidence.

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