Seattle Housing Market Watch – March 26, 2025

By Zach McDonald, Real Property Associates

Spring has officially arrived in Seattle, and so has the most competitive stretch of the 2025 housing market. Buyer activity continues to strengthen, particularly around the average and median price points, while higher-end homes and condos remain noticeably slower. With inventory rising and demand still outpacing supply in many areas, this spring market is shaping up to be the most active period of the year so far.

Mortgage Rates Hold Steady as Buyers Adjust

Mortgage rates remain one of the biggest factors shaping buyer and seller decisions. Mortgage News Daily reports an average 30-year fixed rate of 6.8%, nearly identical to 6.81% last week.

Buyers have largely adjusted to these higher rates, but many homeowners with low fixed mortgages are still staying put. This affects both sides of the equation:

• Lower demand because some would-be buyers don’t want to trade their low rate for a higher payment

• Lower supply because many homeowners don’t want to give up their existing mortgage

This balance has kept Seattle-area home prices relatively stable in recent years—no major surges, but no major drops either.

Inventory Increases, but Many Homes Still See Limited Competition

New listings increased to 667 this week, up from 621. Price reductions also increased, rising to 290 from 218, signaling that many homes are not selling instantly or receiving multiple offers.

Only 19 contingent purchases were accepted across King and Snohomish County, reaffirming that contingent offers are still difficult to win—especially for hot, median-priced single-family homes.

Pending sales dipped slightly to 789 from 813, and closed sales rose to 557 as end-of-month closings picked up. Overall activity remains steady across both counties.

King County: Prices Edge Up and Offers Get Slightly More Aggressive

King County saw a noticeable increase in median sale price this week, climbing to $1,000,000, up from $935,000 the week prior. While this doesn’t necessarily signal a sudden market shift, it reflects stronger activity among higher-priced homes.

Homes sold an average of 2% above asking, compared to 1% the previous week.

Despite slightly fewer multiple-offer situations—40% this week versus 41% last week—buyers competed more aggressively for the homes they wanted:

• Inspection contingencies: 30% (down from 32%)

• Financing contingencies: 58% (down from 59%)

• Escalation clauses: 20% (up from 19%)

These shifts suggest buyers may be reacting to recent bidding losses and strengthening their offers to stay competitive.

Snohomish County: Competitive, but Slightly Less Aggressive Than Prior Weeks

Snohomish County’s median price dipped slightly to $774,990, down from $818,275, while the average sold-to-list ratio remained at 1% over asking.

Competition remained strong, with 43% of pending homes receiving multiple offers (up from 42%). But buyers were actually less aggressive overall:

• Inspection contingencies: up to 38% (from 28%)

• Financing contingencies: up to 75% (from 66%)

• Escalation clauses: increased to 17% (from 14%)

This suggests that while many homes are attracting multiple offers, sellers are considering offers with more protections—possibly because the most aggressive buyers already secured homes in previous weeks.

What This Means for Seattle Buyers

Buyers shopping at the median price point should expect strong competition, limited inventory, and fast-moving listings. However, more than half of homes in both King and Snohomish County are still not seeing multiple offers, and many are selling at or below asking price.

This spring presents opportunities for buyers who:

• Stay flexible and act quickly

• Understand which homes are likely to attract bidding wars

• Structure strong, balanced offers that match the home’s competitiveness

Condos and higher-priced homes continue to offer more breathing room and better negotiating conditions.

What Sellers Can Expect This Spring

Sellers in competitive single-family price ranges can expect strong early interest and multiple offers in many cases. Homes priced above the median or condos may require more strategic pricing, improved presentation, and patience.

Because both supply and demand remain lower than historic norms, the market stays competitive—but not overheated.

Looking Ahead: What Could Shift the Market?

Interest rates still hold the key to significant market changes. If rates fall into the 5–5.5% range, an influx of buyers—and sellers—could re-enter the market, dramatically increasing activity. For now, forecasts suggest rates may reach around 6% later this year, depending on policy decisions and economic conditions.

Until then, expect steady demand, moderate competition, and a spring market that remains the most active period of 2025.