2025 Market Update - February 2025

The Seattle real estate market in early 2025 continues to be a dynamic and competitive landscape. While some indicators suggest a slight moderation, the overall trend points towards a seller's market with sustained demand and limited inventory. Affordability continues to be the major factor driving the market with both prices and interest rates continuing to rise. While there are some rumblings about sellers staying off the market because of longer days on market & price reductions, I remain optimistic for sellers due to two factors:

1. 32% of current Pending sales in the 3 county Seattle MSA are reporting multiple offers. The Eastside cities I work most in are reporting even higher percentages, 44% to 49% of pending sales are reporting multiple offers.
2. The median unpublished Pending to List price ratio in the 3 county area remains above 100% with these same Eastside cities reporting pending prices 102% to 104% above the asking price.

Additionally, my most recent closing in mid-January, a $1.69m golf course home in Snoqualmie, had 4 interested buyers & we were able to negotiate a full price offer with minimal repairs and a reduced Buyers Brokerage compensation, which put more $ in my seller’s pocket. Even with interest rates near 7%, we were able to go under contract in 5 days.

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2025 – What to expect? – Interest rates and the current economic unease remain the wild card – while interest rates at or slightly above 7% remain a barrier to many buyers, my most recent sale highlighted above shows that properly priced and presented homes will do well. When interest rates dropped closer to 6.5% late last summer, we saw a uptick in buyer activity and sellers responded. I expect a similar response from sellers this spring and predict a surge of listings due to pent up seller demand. Buyers, on the other hand, will respond as well, with the caveat that those that are out there, those who can navigate higher interest rates, will compete fiercely for the homes available.