Seattle Housing Market Watch – January 28, 2025

By Zach McDonald, Real Property Associates

Welcome back to this week’s Seattle Housing Market Watch. Even with January wrapping up, low inventory continues to define the Seattle and Snohomish County markets. New listings are slowly increasing, but buyers across all price points are still facing limited choices as competition remains strong.

New Listings Trend Upward, But Still Not Enough Supply

This past week brought 453 new single-family listings to the market—an increase from 404 the previous week. While this upward movement is normal for this time of year, it hasn’t made much of a dent in availability for active buyers.

Even with new clients entering the market, many are finding very few homes that meet their search criteria. On the map it may appear that plenty of homes are available, but once filtered by price, location, and features, options shrink dramatically. This is true from entry-level buyers to the luxury segment.

Expect inventory to begin ramping up further in February and March, which is typical for the Seattle area.

Price Reductions Reveal Opportunities

Although the market is competitive, we continue to see a notable number of price reductions:

• 147 this week

• 188 last week

These reductions highlight homes that have been sitting for a while, often because of condition issues, pricing mismatches, or other challenges buyers are hesitant about. For buyers, these properties can represent negotiation opportunities—especially when sellers are adjusting expectations after extended time on market.

Buyer Activity Remains Strong and Steady

Pending sales held steady week-over-week:

• 625 pending sales both this week and last week

Closed sales also remained consistent:

• 293 closings this week

• 289 last week

We can expect a larger number of closings as we enter the end of the month and roll into February.

Mortgage Rates Hover Around 7% Again

According to Mortgage News Daily’s survey:

• 30-year fixed rate this week: 7.07%

• Previous week: 7.08%

Rates have remained remarkably stable in the 7% range. As always, individual rates vary depending on credit, down payment, income, and debt-to-income ratios. Some buyers with strong financial profiles are securing slightly lower rates, while others may land a bit higher.

Mortgage News Daily continues to be one of the most reliable snapshots of daily national averages because it reflects real lender surveys—not promotional teaser rates.

Could the California Wildfires Affect Seattle’s Housing Market?

A viewer asked whether the recent California wildfires could impact Seattle real estate. While migration from California to Washington is consistently high, the wildfires are unlikely to create a significant spike in demand.

Recent census migration data shows:

• 2023: ~40,000 people moved from California to Washington; ~212,000 migrated to Washington total

• 2022: ~50,000 from California; ~250,000 total

California, Texas, and Oregon remain the top sources of inbound migration to Washington. While some wildfire-displaced residents might relocate out of state, many will rebuild, stay near family, or remain tied to their jobs.

Overall, the fires may contribute a small increase in migration, but likely not enough to meaningfully affect Seattle home prices or competition in the short term. Any measurable impact would show up in multi-year migration data.

Signs of a Tight Market Heading Into Spring

Even with more listings gradually entering the market, competition remains intense. A home I planned to show this weekend went pending almost immediately—listed Friday and sold before Saturday showings. This kind of rapid activity is a key sign of tight inventory and strong buyer demand.

Looking ahead, expect:

• More listings coming online through February and March

• Continued competition for well-priced homes

• Some lingering, overpriced, or flawed listings presenting negotiation opportunities

• A market that mirrors early 2024—low supply and steady demand

For a deeper dive into what’s ahead this year, check out my 2025 Seattle Housing Market Predictions video, filmed with my lender partner Dan Keller. Dan brings excellent insight into the mortgage landscape and what might influence rates throughout the year.