Seattle Housing Market Watch – March 3, 2025

By Zach McDonald, Real Property Associates

We’re entering the final stretch of winter, and the spring housing market is already taking shape across Seattle, King County, and Snohomish County. Inventory is increasing, competition remains steady, and mortgage rates continue a slow decline—all setting the stage for another active spring real estate season.

Mortgage Rates Reach Four-Month Lows

For the third week in a row, mortgage rates ticked downward. Mortgage News Daily reports the average 30-year fixed rate at 6.74%, down from 6.8% last week and the lowest point of 2025 so far. Although rates remain close to 7%, this downward movement helps ease monthly payments and slightly improves buyer purchasing power.

Still, dramatic rate drops are not expected this year. Most forecasts anticipate rates staying in the 6%–7% range due to inflation, economic uncertainty, and the broader political climate. Even so, buyer activity remains strong—especially for single-family homes in desirable areas.

New Listings Rise as Spring Approaches

The Seattle metro is seeing a healthy increase in new inventory. This week brought 585 new listings, up from 446 the week prior. Price reductions stayed nearly identical at 215, showing that while competition is present, not every home is selling immediately or above asking.

Contingent sales remained steady at 14, continuing the trend of sellers rarely accepting home-sale contingencies in competitive segments of the market.

Pending sales held nearly flat at 692, compared to 691 the previous week, and closed sales jumped to 573, consistent with the typical end-of-month surge.

King County: Competition Remains Strong

King County’s numbers stayed almost identical to last week, confirming stable and persistent demand for single-family homes.

• Median sale price: $940,000

• Average sale-to-list price: 102%

• Homes with multiple offers: 42%

• Offers with inspection contingencies: 36%

• Offers with financing contingencies: 61%

• Offers using escalation clauses: 17%

Roughly half of homes are effectively selling at or above list price, with many buyers strengthening their offers by removing contingencies. Escalation clauses remain a common tool in competitive areas, particularly for well-priced homes in great locations.

Snohomish County: Slightly Less Competitive but Still Active

Snohomish County continues to mirror King County trends but with slightly less intensity.

• Median sale price: $797,475

• Average sale-to-list price: 100%

• Homes with multiple offers: 36%

• Offers with inspection contingencies: 32%

• Offers with financing contingencies: 65%

• Offers using escalation clauses: 12%

The market remains competitive—more than one-third of homes are receiving multiple offers—but prices are not accelerating as quickly as in King County. Buyers still face competition, but there may be slightly more breathing room depending on the neighborhood and price point.

Single-Family Homes vs. Condos: Two Different Markets

Across both counties, the divide between single-family homes and condos remains significant. Single-family homes continue to draw heavy buyer interest, often selling quickly and above asking. In contrast, condos are:

• Taking longer to sell

• Seeing more price reductions

• Experiencing less competition

• Carrying significantly higher inventory levels

For condo buyers, this means more options and more negotiation power. For single-family buyers, it means preparing for competitive offer scenarios, especially as spring activity ramps up.

What to Expect This Spring

The Seattle housing market is behaving as expected for early spring: more listings, steady competition, and gradual buyer momentum. As inventory continues to build into April and May, buyers may gain slightly more choice, while sellers still benefit from low overall supply.

I anticipate a competitive but not overheated spring, followed by a slower early-summer period—similar to 2024. Interest rates, inventory growth, and buyer volume will all play a role in determining how quickly the market shifts.