Seattle Housing Market Watch – August 15, 2025

Seattle just experienced one of the warmest stretches of the summer, and the housing market is showing its own small signs of warming up as well. Over the past couple of weeks, we’ve entered what looks like the beginning of a transition—one that could lead to a more competitive fall and winter season, especially if inventory continues to decline and mortgage rates keep edging downward.

If you caught last week’s full market update, you heard me talk about this potential shift. Now, with another week of data in hand, we’re seeing more early indicators that the market may be tightening.

New Listings Remain Low While Buyer Activity Stays Steady

Across King and Snohomish counties, new listing activity continues to slow—very normal for this time of year, but important nonetheless.

  • 735 new listings this week

  • 698 new listings last week

Even with that slight increase, we’re still far below the volume we typically see earlier in the summer.

Pending sales held steady:

  • 768 pending sales this week

  • 792 pending sales last week

In both weeks, pending sales outnumbered new listings. This pattern has caused inventory levels to decline for several weeks in a row, reversing the growth we saw during early summer.

With fewer homes on the market, buyers are beginning to compete over a shrinking pool of options.

Mortgage Rates Dip Again

Mortgage rates continue to trend downward—slightly, but consistently:

  • Current (Aug 15): 6.56%

  • Late July: 6.75%

Even small drops in mortgage rates can spark new buyer interest, especially when combined with declining inventory. This is one reason I believe we could see increased competition as we move into the fall.

King County: Slight Uptick in Competition

In King County, the newest pending-sale data shows a mix of softening prices and rising competition—classic early signs of a market pivot.

King County Highlights

  • Median sales price: $965,000

  • Average sale-to-list price: 99% (down from 100% in late July)

  • Multiple offers: 26% (up from 24%)

  • Escalation clauses: 11% (up from 9%)

  • Financing contingencies: 69%, up from 65%

  • Inspection contingencies: 42%, up from 40%

This data tells two stories at the same time:

  1. More older listings are finally selling—often slightly below asking and with contingencies.

  2. Newer listings are attracting more competition as inventory tightens.

This combination is exactly what you expect when a market begins to shift.

Snohomish County: Similar Trends, Slightly Lower Prices

Snohomish County is experiencing almost the same pattern, although at lower prices.

Snohomish County Highlights

  • Median sales price: $750,000

  • Sale-to-list price: 99%

  • Multiple offers: 26% (up from 24%)

  • Escalation clauses: 7% (up from 6%)

  • Financing contingencies: 83% (up from 77%)

  • Inspection contingencies: 43% (up from 40%)

Just like in King County, the number of homes sitting 20–30+ days is still high, but that pool is shrinking as buyers absorb the leftover inventory. Meanwhile, the more desirable new listings are starting to see improved activity and more competitive terms.

What This Means for Buyers

If you’re a buyer, the window you’re in right now—late summer—may be the last period of relatively high selection before competition increases.

As inventory continues to fall:

  • You may see fewer options week-to-week.

  • Well-priced homes in good locations will move faster.

  • Multiple-offer situations could become more common heading into fall.

The market isn’t hypercompetitive yet, but it’s edging in that direction.

What This Means for Sellers

If you’re thinking about selling, conditions are improving compared to early summer:

  • Buyer activity remains strong.

  • New listings are slowing.

  • More homes are receiving multiple offers.

  • Well-priced, well-prepared listings are selling faster.

No, it’s not the frenzied seller’s market of years past—but the momentum is shifting in a favorable direction.

Final Thoughts

Both King and Snohomish counties are showing early signs of tightening. Inventory is dropping, rates are dipping, and newer listings are attracting more attention than they were just a few weeks ago. If these trends continue, we may enter fall with a more competitive market than what we experienced this summer.