Seattle Housing Market Update – September 30, 2025

As we close out September and the summer season, Seattle’s housing market is showing a mix of seasonal stabilization and early signs of increased competition heading into fall.

Market Trends

Seasonal Slowdown: Earlier in summer, a slowdown was observed, but this was consistent with normal seasonal trends rather than a market downturn.

Inventory: New listings have been decreasing, typical for late summer and early fall. King & Snohomish Counties: 720 new listings (down from 775 the previous week).

Price Reductions: Slight increase, indicating sellers adjusting pricing: 621 homes (up from 611).

Despite these changes, pending sales remain steady, reflecting an ongoing healthy buyer demand.

Interest Rates & Buyer Opportunity

Mortgage rates are stable at 6.37%, slightly higher than a few weeks ago, but still lower than earlier 2025 levels.

Buyer opportunity is strong: inventory is high relative to previous years, giving buyers more choices with less immediate competition.

However, competition is beginning to rise, especially for well-priced homes.

King County Market

Pending Sales: 817 homes, slightly down from 861 the previous week, but still consistent.

Competition: 28% of listings had multiple offers (slightly lower than last week’s 29%). 12% of offers included escalation clauses (down from 14%), signaling some competitive pressure remains.

Contract Contingencies: Financing contingencies: 70% (slightly up from 67%). Inspection contingencies: 42% (slightly up from 40%).

Sale-to-List Ratio: 99%, showing homes still sell near asking price.

Pricing strategy is crucial: well-priced homes receive more offers and may sell above list, while overpriced homes risk reductions.

Snohomish County Market

Median Sales Price: $780,000 (up from $757,000 the previous week).

Competition: 21% of listings received multiple offers (down from 24%). 8% included escalation clauses (up from 4%), showing selective competitive behavior.

Contract Contingencies: Financing addendums: 76% (down from 81%). Inspection contingencies: 51% (up from 49%).

Sale-to-List Ratio: 99%, increasing competition relative to previous weeks.

Snohomish County remains less competitive than King County overall but is showing signs of increased buyer activity and negotiations.

Key Takeaways

Competition is returning: Multiple offers, escalation clauses, and changes in contingencies indicate buyers are beginning to compete for desirable homes.

Buyers have options: Despite rising competition, inventory remains high, making this an opportunity for strategic buyers.

Pricing is critical: Homes priced appropriately are more likely to sell quickly, potentially above list, while overpriced homes often require reductions.

Snohomish vs. King County: King County remains hotter with more competition; Snohomish is slightly cooler but heating up.

Interest rates influence activity: Slight increases in rates have affected immediate buyer urgency, but trends suggest rates may continue to drop, supporting future activity.

Market Outlook

Seattle’s housing market is stable and seasonal patterns remain consistent. The late-summer/early-fall period is setting the stage for increased competition as inventory tightens and buyers adjust to current interest rates. Well-priced homes in desirable locations will see the most activity, and buyers should remain prepared to act strategically while considering contingencies and escalation clauses.

This update reflects a market balancing act: steady demand, gradually rising competition, and strategic opportunities for both buyers and sellers.