Seattle Housing Market Watch – May 20, 2025

As we head into Memorial Day weekend, the Seattle housing market is beginning to show signs of a seasonal and expected slowdown. This time of year typically sees fewer new listings toward the end of the week as buyers and sellers shift their focus to holiday travel and spring activities. After the holiday passes, listing activity usually picks back up before tapering off again once school lets out and summer travel begins.

Spring is historically one of the busiest times for Seattle real estate, but early summer often brings a shift. The beautiful Pacific Northwest weather encourages weekend getaways, and with buyers spending more time out of town, home showings and competition naturally ease. This trend applies to all types of buyers and sellers, not just families with school-age children.

Over the past several weeks, the data has been pointing toward a cooling market in both King and Snohomish counties. Inventory continues to rise, with more than 1,000 new listings coming on the market this past week, but price reductions are also becoming more common. In fact, price reductions reached 572 across the two counties, representing more than half the number of new listings — a key sign that homes are no longer selling at the peak pace we saw earlier in the spring.

Contingent offers are also making a comeback, with 26 accepted this past week. This shift suggests sellers are becoming more open to move-up buyers who need to sell their current home before purchasing a new one. Over the last few years, contingent offers were rare due to intense competition, but slowing conditions are creating more flexibility and opportunity for buyers.

Homes are still selling, with 967 pending sales this week and 569 closed sales, but the pace is easing. Days on market are beginning to creep upward, and offer review dates are no longer guaranteeing multiple offers. As summer approaches, expect to see fewer homes selling above list price and more listings remaining on the market beyond their offer reviews.

Mortgage rates continue to hover around 7%, with Mortgage News Daily reporting 6.99% for a 30-year fixed loan. While not ideal for affordability, these rates have been relatively stable, giving buyers clearer expectations as they enter the market.

King County is showing consistent pricing, with the median sales price holding just under $1 million. However, fewer homes are receiving multiple offers — down from 33% to 29% week-over-week. Escalation clauses dropped from 17% to 13%, and inspection contingencies increased from 32% to 38%, indicating buyers are gaining negotiating power and protecting themselves more often.

In Snohomish County, the shift is even more pronounced. The median sales price dropped slightly this week, and for the first time this season, homes sold below the asking price on average at 99% of list. Multiple offers decreased sharply from 37% to 26%. Inspection contingencies rose significantly from 31% to 43%, demonstrating that buyers have more leverage and can negotiate stronger terms. Some buyers are even securing homes under list price — a trend that hasn’t been common in the past few years.

For buyers, this emerging window could be the best opportunity of the year. More inventory, fewer bidding wars, and negotiable prices create favorable conditions, even with higher interest rates. Many successful homebuyers in Seattle purchase during late spring and summer when competition softens.

For sellers, adjusting expectations is key. Homes may take one to three weeks to sell, and price reductions may be necessary in some cases. Proper pricing and strong presentation remain essential as the frenzy of early spring fades into a more balanced summer market.

If you’re thinking about buying or selling in Seattle or Snohomish County, now is the time to plan strategically. Reach out for personalized guidance, market insights, or help navigating your next move.