Seattle Real Estate Market Update – May 2025
Seattle Real Estate Market Update – May 2025
Welcome to the May 2025 Seattle Real Estate Market Update! As always, we’ll cover a recent client story, break down the latest market stats for Seattle and Bellevue, and wrap up with practical guidance for both buyers and sellers navigating today’s shifting market.
Client Story of the Month
This month’s highlight comes from helping a wonderful pair of first-time buyers in Bothell. After making several strong offers and sitting out a few listings due to heavy competition, they finally secured their favorite home—ironically, the one they loved most from the beginning.
They won the property with a small amount over asking and strong terms, perfectly timed between waves of early spring competition. This purchase was especially meaningful because it was the final transaction in a series of home sales and purchases for multiple members of their extended family over the past year.
Relationships like these are what make real estate meaningful. If you’re new to the channel or considering buying or selling, I’d love to connect with you as well.
Seattle & Bellevue Housing Market Overview
Mortgage Rates: Still High, Still Stable
Mortgage rates continue hovering in the upper 6% range.
Current rate: 6.86% (Mortgage News Daily)
Rates have remained relatively flat for months.
Higher rates have slowed, but not stopped, price growth.
Seattle Hits a New All-Time High Median Sale Price
Seattle’s median sales price just reached a new record:
Seattle
Median Sales Price: $1,000,000
Up 4.3% year-over-year
Surpasses the previous peak of $996K set in 2022
Prices have fully rebounded despite higher interest rates
Bellevue
Median Sales Price: $2,065,000
Up 8.7% year-over-year
Close to its all-time high
Bellevue homes continue to cost roughly double the price of Seattle homes
Bellevue remains a strong representation of Eastside demand, where tech jobs and newer housing stock keep prices elevated.
Homes Are Still Selling Fast
Speed remains consistent with past years:
Median Days on Market
Seattle: 6 days
Bellevue: 5 days
Average Days on Market
Seattle: 16 days
Bellevue: 12 days
Both markets remain quick-moving, with homes typically selling within two weeks on average.
Homes Continue to Sell Over Asking
Competition is moderating but still present:
Seattle: +3.3% over list price
Bellevue: +3.5% over list price
Both cities remain ahead of King County overall, which includes many slower-moving suburban markets.
Inventory Is Rising Significantly
More homeowners are listing their properties this year:
New Listings (Year-over-Year)
Seattle: +22%
Bellevue: +50%
While closed sales are also up (Seattle +10.9%, Bellevue +8.1%), new listings are climbing much faster than demand—leading to rapidly increasing inventory.
Homes for Sale
Seattle: +58.5% year-over-year
Bellevue: +135.9% year-over-year
Months of Supply
Seattle: 2.2 months (over 50% higher than last year)
Bellevue: 2.4 months (140% higher than last year)
These increases mark a major shift from the “nothing to sell” conditions of 2021–2023. Inventory is now building faster than buyers are absorbing it.
What This Means for Buyers & Sellers
For Buyers
You’re entering a more balanced market.
More inventory = more options
Fewer bidding wars compared to early spring
Prices are stabilizing, with modest 2–4% appreciation
Affordability remains challenging due to high rates
Buying only makes sense if you plan to stay 4–5+ years
If rates drop later, expect demand—and prices—to surge quickly. Buying now may position you ahead of the next wave.
For Sellers
You’re still in a strong position—but the window is narrowing.
Prices are at or near all-time highs
Homes continue to sell over list price
Inventory is climbing fast, which will cool competition
If you plan to sell in 2025, listing sooner may help you catch remaining spring and early summer momentum before buyer leverage increases.
Final Thoughts
Seattle and Bellevue remain healthy, resilient markets. Prices have recovered, buyer activity is steady, and inventory is finally rising toward more normal levels. As we head into the rest of 2025, expect a more balanced environment—good news for both thoughtful buyers and well-prepared sellers.
If you’re weighing your next move in the Seattle or Bellevue area, feel free to reach out. I’d be happy to help you navigate your real estate goals.
