Seattle Housing Market Watch – 5/14/2025

Seattle Housing Market Watch – May 14, 2025

Hi, I’m Zach McDonald with Real Property Associates, and here’s your Seattle Housing Market Watch for May 14, 2025. If you missed last week’s monthly market updates, I highly recommend checking those out—both King and Snohomish Counties are sitting at or near all-time high prices, even as mortgage rates continue hovering around 7%. Despite higher home prices and higher interest rates, demand is still strong and the market remains competitive across much of the region.

Home Prices, Rates, and Current Buyer Activity

Mortgage News Daily reports an average rate of 6.95%, keeping affordability tight. Even so, multiple offers remain common in many neighborhoods, and pending sales continue to show strong buyer activity. What’s interesting is that the market appears to be shifting, but not in a straight line. Inventory is rising, which typically leads to slower conditions, yet week-to-week competition continues to fluctuate.

Across King and Snohomish Counties, we are seeing slightly fewer homes selling above list price. More properties are now selling at asking price—or below it—showing early signs of a cooling trend. However, great homes are still drawing aggressive attention. Spring brings the largest wave of new listings each year, and that alone can create short bursts of heightened competition.

Weekly Market Data: New Listings, Price Reductions, and Sales Activity

This week brought fewer new listings than the previous one: 933 versus 1,033. That reduction in fresh inventory helps keep competition elevated. Price reductions remain high at 498, similar to last week’s 509. With more than half as many price reductions as new listings, it’s clear that some sellers overshot their initial pricing and are now adjusting to attract buyers. This dynamic also skews the “percentage over asking” data because today’s asking price may already reflect a reduced number. In reality, the true average sale-to-original-list ratio is likely lower than it appears.

Pending sales dropped to 838 compared to 950 last week, mainly due to fewer new listings. Closed sales also dipped, with 499 closings versus 685 the previous week. Weekly fluctuations are normal, and May is still expected to outperform April by the time the month closes.

King County Market Insights

King County’s median sales price hit $1,010,000 last week, up significantly from the prior week’s $960,000 and back near the county’s all-time record. Average sale-to-list price sits at 100%, showing balanced pricing overall even though individual homes may sell above or below asking.

Multiple offers slowed slightly, with 33% of listings receiving more than one offer compared to 36% last week. Escalation clauses appeared in 17% of offers, down from 19%. At the same time, buyer protections increased: 63% of pending sales included a financing contingency, and 32% included an inspection contingency. These shifts indicate that while competition is still present, buyers are regaining some leverage.

Snohomish County Market Insights

Snohomish County saw an increase in competition last week. The median sales price jumped to $901,000 from $790,000 the week before, though weekly price swings are common. Homes sold at an average of 100% of the list price.

Multiple offers increased to 37% of sales, up from 29% the previous week, and escalation clauses rose from 12% to 15%. Financing contingencies dropped to 69% and inspection contingencies to 31%, showing that buyers were more aggressive in Snohomish County than in King County this week.

What Buyers and Sellers Should Expect Next

Overall, the Seattle-area housing market remains hot and has not yet reached the inventory “critical mass” that typically cools demand. Some weeks show softening signs, while others feel more competitive than before. This push-and-pull is typical during spring as more high-quality homes hit the market.

Sellers who list soon still have an excellent opportunity to capitalize on strong demand before summer’s slowdown. Buyers benefit from rising inventory, which provides more options, and also from opportunities on homes sitting longer or adjusting their price. Even without major price drops, avoiding bidding wars can save thousands.

Whether you’re a buyer looking for strategic opportunities or a seller preparing to maximize your home’s value, I’d be happy to help you navigate the market. If you found this update valuable, feel free to reach out or share it with someone who’s planning a move.