Seattle Housing Market Watch – May 27, 2025

As we wrap up Memorial Day weekend and approach the final days of May, the Seattle housing market is clearly transitioning from a hot spring season into a slower, more balanced summer market. With only a few weeks of school left and summer travel beginning, buyer activity naturally shifts, and we are already seeing the early signs of this seasonal change reflected in the data.

Over the past several months, the market has moved from intense competition to a more neutral environment with increased inventory. As a result, homes are beginning to take longer to sell, multiple-offer situations are less frequent, and price reductions are becoming more common—especially compared to this time last year. Much of this shift is driven by the increase in supply, giving buyers more options and more negotiating power.

Mortgage rates continue to hover near 7%, with Mortgage News Daily reporting 6.97%—slightly lower than last week and still below the 7.28% rates we saw at the same time last year. Even with near-identical rates all year, the key difference in 2025 is the number of homes coming on the market, which is accelerating the slowdown more quickly than in 2024.

This week brought 652 new listings across King and Snohomish counties, significantly fewer than last week’s 1,087 due to the holiday but still well above the 500 new listings recorded during the same week last year. We also saw 445 price reductions—down from last week’s 572 but much higher than the 266 recorded at this time in 2024. Pending sales reached 810, slightly below last year’s 822, despite having much higher inventory this year. Closed sales held steady at 569, the same as last week but lower than last year’s 622.

These numbers paint a clear picture: buyer demand hasn’t decreased, but the influx of new listings is shifting the market earlier and more noticeably than last spring. This is a normal seasonal pattern for Seattle, but with larger swings due to increased inventory.

For sellers, this means we’ve already passed the peak of the spring market. Homes are now spending more time on the market and receiving fewer showings, and without competition, prices are no longer being pushed upward. While it’s still very possible to sell for a strong price, the multiple-offer frenzy is slowing. Strategies like underpricing to spark a bidding war are far less effective in this environment and can lead to disappointing outcomes. Pricing appropriately—or even slightly higher with room to negotiate—may be the stronger approach in this phase of the market.

In King County, the median sales price this week was $910,000, down from $979,500 the week before. Homes sold for an average of 98% of the list price, compared to 100% last week. Only 25% of homes saw multiple offers, down from 29%. Escalation clauses dropped from 13% to 10%, while financing contingencies increased from 61% to 70% and inspection contingencies rose from 38% to 42%. These trends clearly signal that buyers have more leverage and are successfully negotiating terms.

Snohomish County is seeing similar patterns. Homes sold for an average of 98% of list price, down from 99% last week. Median sales price landed at $801,250. Multiple-offer scenarios fell to 17%, a sharp drop from 26%, and escalation clauses nearly disappeared at just 6%. Financing contingencies remained high at 72%, and inspection contingencies climbed to 48%—nearly half of all accepted offers.

For buyers, this is the early start of your most favorable buying window of the year. From late May through summer, buyers will see the most inventory, the least competition, and more opportunities to negotiate price and terms. While interest rates remain elevated, the increased flexibility, transparency, and reduced bidding pressure can easily outweigh rate concerns for many buyers.

For sellers, understanding the shift is key. Homes will take longer to sell, competition is easing, and pricing strategies must adjust to today’s more balanced conditions. The market is still healthy—but it’s no longer the peak seller’s market we experienced earlier in the spring.

As we enter summer, expect continued inventory growth, ongoing buyer demand, and further softening of competition. Unless interest rates drop significantly, this pattern is likely to continue and may become even more pronounced later in 2025.

If you’re considering buying or selling in the Seattle area, I’m here to help you navigate this evolving market with clarity and strategy. And if you found this update valuable, feel free to share it with someone who might benefit.