Seattle Housing Market Watch – 2/4/2025
Seattle Housing Market Watch – February 4, 2025
By Zach McDonald, Real Property Associates
February has arrived, and while the days are slowly getting longer here in Seattle, the housing market is also beginning its typical early-spring awakening. Even with mortgage rates holding steady in the 7% range, buyer demand remains strong and inventory is still tight across King and Snohomish counties.
Mortgage Rates Hold Steady in the Low 7% Range
According to Mortgage News Daily, the average 30-year fixed rate is 7.07%, right in line with where rates have hovered for much of late 2024 and early 2025. Rates continue to remain elevated due to persistent inflation questions and the Fed’s decision not to cut rates at its most recent meeting.
Many forecasters expect rates to stay higher for longer, with more meaningful declines likely not arriving until late 2025 or even 2026. For now, today’s market continues to operate in a high-rate environment.
Early Market Data Shows Modest Year-Over-Year Price Growth
Here’s a quick preview of how January home prices compare to last year:
Seattle: Up 2% year-over-year
Median sales price: $843,950King County: Up 0.3%
Median sales price: $855,000Snohomish County: Up 4.8%
Median sales price: $765,000
Prices aren’t spiking, but they’re holding steady—and even climbing slightly—despite higher rates, which reflects how limited supply continues to drive competition.
New Listings Dip, but Pending Sales Rise
Although we’ve entered the time of year when listings typically start to increase, this past week actually saw fewer new listings than the week prior:
New listings: Down nearly 50 week-over-week
Pending sales: Up to 657, rising from 625 the previous week
Closed sales: Up by about 50 as well, typical for the end-of-month surge
This combination—fewer new listings and more pending sales—keeps pressure on buyers, particularly in high-demand areas and price points.
Intense Competition Returns in Key Markets
Competition is heating up quickly as we enter the spring cycle. A recent example: buyers I’m working with wrote an offer on a home in Lynnwood that already had 10 offers on the table. Similar levels of competition are showing up in Bothell, Lynnwood, and other North King and South Snohomish communities.
While single-family homes continue to receive strong attention, condos remain more variable. For instance, my new Queen Anne condo listing—located near Amazon, offering downtown and Space Needle views, and walkable to the neighborhood core—is still on the market, illustrating how demand differs by property type and micro-location.
What to Expect Moving Into Spring 2025
With the days lengthening and spring around the corner, more homes will begin hitting the market. However, supply will likely remain well below normal levels, which means:
Expect continued competition for well-priced single-family homes
Some condos and less-ideal properties may sit longer
Buyer activity will increase even if rates remain in the 7% range
Inventory should grow, but not enough to dramatically shift the balance
Seattle’s seasonal real estate rhythm is already taking shape. If you’re preparing to buy, now is the time to get pre-approved and start watching the market closely. For sellers, the late-winter and early-spring window is historically one of the best times to list.
