Seattle Housing Market Watch – July 15, 2025

We’re halfway through July, and the Seattle housing market is showing clear signs of its usual seasonal slowdown. After a surge of new listings at the end of spring—and a brief pause around the Fourth of July holiday—market conditions across King and Snohomish counties are shifting into a more balanced territory.

Seasonal Slowdown Continues, but the Slowdown Is Slowing

The last few weeks have brought a cooling trend, but not as sharply as we saw earlier in the summer. Historically, July brings less buyer activity as people travel, and this year is no exception. Even so, we’re seeing a bit more stability as the market moves through its typical seasonal rhythm.

Inventory climbed rapidly this spring, giving buyers more choices and easing the intense competition that characterized the earlier part of the year. Now, with fewer buyers in town and a solid number of active listings, sellers are experiencing longer market times and more negotiations.

New Listings, Price Reductions, and Buyer Trends

Last week brought 994 new listings, a healthy volume for mid-summer. At the same time, 756 price reductions were recorded—evidence that many homes are adjusting their price to meet current market expectations. Even some properties that go pending quickly are selling below list price, showing how much the dynamic has shifted.

The majority of homes in both King and Snohomish counties are not receiving multiple offers right now. While bidding wars are still happening in certain neighborhoods, they are no longer the norm. For buyers, this means more breathing room, more negotiating power, and greater freedom to include financing or inspection contingencies.

Sellers, meanwhile, are still achieving strong prices despite higher interest rates—thanks to overall demand and steady economic conditions.

Mortgage Rates Hold Steady in the High 6% Range

After hovering near 7% for over a year, mortgage rates remain relatively stable. As of July 14, Mortgage News Daily reported an average 30-year fixed rate of 6.85%. Rates briefly dipped into the mid-6% range but have since bounced back. With mixed predictions on future Fed rate cuts, the housing market continues to operate within this familiar interest-rate environment.

Mid-July Market Snapshot: King County

Instead of a one-week snapshot, this update looks at the first two weeks of July—offering a clearer mid-month picture.

Key highlights for King County:

  • Median sales price: $975,000 (slightly down from June)

  • Average sale-to-list price: 99%, meaning most homes are selling just under list price

  • Multiple offers: 25%, down from 28% at the end of June

  • Escalation clauses: 8%, a notable drop from 13%

  • Financing contingencies: 70%, up from 63%

  • Inspection contingencies: 41%, up from 35%

These increases in contingencies reflect a less competitive environment. Buyers have more flexibility to protect themselves—something that was nearly impossible for much of the spring.

Where Competition Remains Strong

Certain parts of King County continue to outperform the wider market. Areas like Seattle, Bellevue, Redmond, Shoreline, and Lake Forest Park saw year-over-year price growth of around 10% or more. These neighborhoods benefit from proximity to major employers and a renewed demand for shorter commutes as more companies return to in-office or hybrid schedules.

Mid-July Market Snapshot: Snohomish County

Snohomish County has cooled even faster than King County. The first half of July showed:

  • Median sales price: $764,900 (below both last month and year-to-date highs)

  • Average sale-to-list price: 98%

  • Multiple offers: 20%, down from 27%

  • Escalation clauses: 6%, down from 7%

  • Financing contingencies: 80%, up from 76%

  • Inspection contingencies: 47%, up from 42%

Compared to King County, Snohomish County is seeing more contingencies, more negotiability, and less competition overall. This aligns with broader trends: during the work-from-home boom, northern suburbs saw explosive demand. Now, as more companies encourage employees to return to the office, interest is shifting back toward centrally located areas.

What This Means for Buyers and Sellers

For buyers, this summer offers more opportunity than they’ve had in months. More active listings, fewer bidding wars, and a growing ability to include contingencies make this a far more buyer-friendly environment—without tipping into a true buyer’s market.

For sellers, prices remain strong, especially for well-maintained homes in desirable locations. While some negotiation is becoming more common, sellers are still achieving values close to the peak pricing seen earlier in the year.