Seattle Real Estate Market Update – January 2025

Summary Outline of the YouTube Transcript

1. Introduction

• Zach welcomes viewers back after holiday break.

• Mentions return to office and beginning-of-year market update.

• Notes early signs of tightening inventory heading into 2025.

2. Client Stories (Market Behavior Examples)

A. Listings that Sold Slowly (Kenmore & Edmonds)

• Priced slightly high → took longer to sell.

• Required price reductions.

• Ultimately sold below asking after negotiation.

• Reasons:

  • Fall season provides more inventory, softer demand.

  • Houses had some non-changeable drawbacks:

    • Edmonds: smaller size.

    • Kenmore: septic system, future sewer connection requirement.

B. Buyer Purchase in Shoreline

• Home priced low relative to value.

• Attracted multiple offers.

• Buyer paid above asking.

• House had ideal mix of features and required only cosmetic updates.

C. Key Takeaways for Buyers & Sellers

• Homes sit on the market when:

  • Price is too high, or

  • There are inherent property issues.

• “Perfect mix” homes still receive strong competition even in slower seasons.

• Buyers should look for overlooked homes where improvements can offset drawbacks.

• Sellers benefit when homes have broad appeal and require only cosmetic work.

3. Mortgage Rates

• Current rate range: ~7.1%–7.17% (per Mortgage News Daily).

• Rates have ticked up into the low 7s.

• Predictions:

  • Some expect rates to drop in 2025, but Zach is doubtful.

  • Stronger economy and Fed stance provide little reason for quick rate cuts.

  • Election transition hasn’t suggested any rapid movement.

• Zach’s expectation:
  Rates likely stay in this range longer than previously thought.

4. Home Prices (Year-End 2024 vs. Year-End 2023)

A. Seattle

• Median sales price: $875,000

• Up 2.9% year-over-year (modest growth)

B. Bellevue

• Median sales price: $1,825,000

• Up 4.3% year-over-year

C. Trend

• Mild appreciation, mostly tracking inflation.

• Overall stable, modest upward trajectory.

5. Days on Market

• Median DOM:

  • Seattle: 26 days

  • Bellevue: 16 days

• Average DOM:

  • Seattle: 41 days

  • Bellevue: 49 days

• Interpretation:

  • Some homes lingered longer in fall/winter but many recently sold.

  • Expect DOM to shorten in January as inventory tightens.

6. Inventory & Supply (Key Storyline)

• Seattle: 1.2 months of supply

• Bellevue: 0.6 months of supply

• Implications:

  • Very low inventory → highly competitive market incoming.

  • January supply expected to drop even further.

  • Heading toward spring cycle with historically low starting inventory.

7. Pricing Dynamics (List Price vs. Original List Price)

A. Percent of Final List Price

• Seattle: 99.3%

• Bellevue: 99.5%

• Looks strong, but…

B. Percent of ORIGINAL List Price (more meaningful)

• Seattle: 97.8%

• Bellevue: 96.8%

• Indicates:

  • Price reductions were common.

  • Buyers likely received ~5% effective discounts in late fall.

C. Note on Relisting

• Homes canceled and relisted don’t fully show previous higher list prices →
  Real discounts may be larger than the data shows.

8. Listing Activity & Seasonal Trends

• Closed sales exceeded new listings in Seattle and Bellevue → supply shrinking.

• Typical seasonal slowdown, but inventory now exceptionally low.

• Early January shows only ~252 new listings (King + Snohomish Counties).

• Expect increase in new listings in coming weeks as spring approaches.

9. Closing & Call to Action

• Zach encourages viewers to reach out for personalized guidance on buying or selling.

• Suggests subscribing for more updates and following the weekly Seattle Housing Market Watch.