Seattle Real Estate Market Update – June 2025
Seattle Real Estate Market Update – June 2025
As we approach the halfway point of 2025, the Seattle housing market is beginning to show meaningful shifts—many of which align with predictions made earlier in the year. With May’s data now in, we’re seeing early signs of a transition from the hyper-competitive seller’s market of recent years toward a more balanced environment.
Before we dive into the numbers, here’s a quick client story that highlights what many buyers are experiencing in today’s market.
Buyer Story of the Month: More Options, More Negotiation Power
I recently helped a couple who attended one of my homebuyer classes a few years ago. After staying in touch and waiting for the right time, they finally began their home search this spring.
Two big things stood out:
More options. They found the right home quickly, thanks to the growing amount of inventory.
More negotiating power. They secured the home below asking price and with buyer-friendly contingencies—inspection, financing, and protections that had been nearly impossible to include during the ultra-competitive years.
Their home is just north of the city in Snohomish County, and it’s a great example of how today’s market is opening up real opportunities for buyers.
Mortgage Rates: Still Stuck in the Upper Sixes
Mortgage rates continue to play a defining role in the 2025 housing market.
Current Average Rate: 6.87% (Mortgage News Daily)
Rates have hovered in the high 6% to low 7% range for almost a year
The Fed has shown little intention of lowering rates in 2025
High rates are impacting both demand (fewer buyers) and supply (fewer sellers willing to give up low rates)—but that supply story is now beginning to change.
Home Prices: Near Record Highs but Appreciating Slowly
Even with more inventory coming online, home prices remain steady and near all-time highs.
Seattle
Median Sales Price: $984,500
Up 2.8% year-over-year
Bellevue
Median Sales Price: $1,925,000
Down 5.6% year-over-year
Prices are hovering near the records we saw in 2022, and in some cases still matching them. We haven’t seen any significant price declines so far—just slower appreciation.
Homes Are Still Selling Over Asking—But Less Than Before
In May, homes continued to sell above list price, though not at the extreme levels we’ve seen in past spring seasons.
Seattle: +1.8% over asking
Bellevue: +2.3% over asking
Both are about 1% lower than last year.
Days on Market: Still Low, But Starting to Creep Up
Homes are selling quickly, especially in Seattle and Bellevue.
Median Days on Market
Seattle: 6 days
Bellevue: 5 days
Average Days on Market
Seattle: 17 days
Bellevue: 15 days
We’re starting to see average market times rise slightly as inventory builds and the spring market slows.
The Big Story: A Surge in New Listings
This is the most important trend shaping the market right now:
New Listings in May
Seattle: Highest number since 2019
Bellevue: Highest number on record (back to 2006)
After years of historically low supply, homeowners are finally starting to list again—whether due to life changes, pent-up demand to move, or the realization that rates may not drop soon.
Closed & Pending Sales Are Lagging Behind
Even with more homes hitting the market, buyer activity isn’t keeping pace.
Closed Sales
Seattle: Lowest May since 2011
Bellevue: Low but not record-setting
Pending Sales
Lowest numbers since the 2011–2012 housing crisis period
This combination—more listings + fewer sales—is pushing inventory levels up rapidly.
Inventory Is Building Fast
This is where we see the real market shift.
Homes for Sale (Year-over-Year Increase)
Seattle: +57.6%
Bellevue: +120%
Months of Supply
Seattle: 3.0 months
Bellevue: 3.2 months
These are the highest supply levels since 2012, marking a clear transition toward a more balanced market.
We’re not in a buyer’s market yet, but we’re moving away from the extreme seller leverage of the past few years.
What This Means for Sellers
High prices + rising inventory = a shrinking window of opportunity.
Homes are still selling well—but the multiple-offer frenzy is fading
Over-asking offers are becoming less common
As supply grows, pricing power shifts away from sellers
Summer 2025 will likely be less competitive than this spring
If you’re thinking about selling this year, doing so sooner may help you avoid a more saturated summer or fall market.
What This Means for Buyers
This is the best news buyers have heard in years.
Highest supply levels in over a decade
More options in every price range
More sellers willing to negotiate
Easier to include inspection and financing contingencies
Less competition overall
If you’ve been waiting for a more balanced market, we’re finally getting close.
Final Thoughts
The Seattle and Bellevue markets are undergoing a noticeable shift. Prices remain strong, but rising inventory is bringing balance back into the market at a pace we haven’t seen in years. Buyers are gaining leverage, and sellers need to be strategic as we move into the summer season.
If you’re planning to buy or sell in the Seattle–Bellevue area, I’d be happy to help you navigate the changes and make the most of today’s evolving market.
