2025 Review - State of the Seattle Real Estate Market

We hope you're enjoying the final weeks of the year and closing out 2025 with some joy! As we head into the end of December, here's an overview of where the Seattle‑area housing market currently stands.

Inventory & Market Balance (single-family homes):

Across King and Snohomish Counties, inventory has risen significantly compared to recent years, giving buyers noticeably more choices than in the ultra‑competitive markets of 2020–2023. Total active single-family housing listings in the King and Snohomish County region were up over 47% year‑over‑year as of late 2025, with inventory levels now tracking around 2.3 + months of supply in many areas — still below what's considered a “balanced market,” but markedly higher than the historically tight conditions we've seen throughout the past 10 years.

While 2.3 months of inventory is technically still a seller's market, in my experience, the Seattle area starts to feel more balanced around 3 to 3.5 months—not the traditional 6-month benchmark. We're not quite there yet, but if interest rates drop and more homeowners feel freed from the “lock-in” effect (where low mortgage rates discourage moving), we could reach that level within the next year or two.

Median Prices (single-family homes):

• In King County, the median sales price sits around $920,000, up very modestly year‑over‑year — indicating continued home‑value stability even as buyer leverage grows.

• Snohomish County median home prices are roughly $745,000, slightly down compared to last year, reflecting a bit more negotiating power.

Inventory & Market Balance (condos):

I usually report single-family and condo data together, but the condo market has diverged so significantly this year that it warrants its own spotlight. Condos are seeing the highest inventory we've seen in over 10+ years. Current inventory in King and Snohomish County is sitting at 4.3 months of inventory. Condo inventory has nearly doubled since 2023. We are in a Buyer's Market in regard to condominiums. This is further exacerbated in Seattle, where condo inventory is sitting at 5.4 months. This is wild to consider when in 2017, we bottomed out at .4 months of inventory! That is only 12 days of inventory!!! Now we're at 5~ months' worth. In real estate, there is always a pendulum swing between condos and single-family homes. If you want a true visual of this, see the graph below of active condo inventory in King County. I foresee condos bouncing back in a year or two as a result of the investment into our downtown core from Seattle hosting the World Cup. If you have not been downtown lately to see the new waterfront, you should!

Median Prices (condos):

• In King County, the median sales price sits around $500,000, down about ~12% year‑over‑year.

• Snohomish County median condo sales price is also $500,000, down about 7% year-over-year.

What This All Means for You:

Whether you're considering buying, selling, or simply watching the market, 2025 has marked a clear shift toward balance—especially compared to the frenzied years behind us.

For buyers, increased inventory means more options, less competition, and in many cases, more negotiating power—especially in the condo market, where we're firmly in Buyer's Market territory for the first time in over a decade. If you're looking for value, particularly in Seattle condos, this could be a rare window of opportunity before prices and demand rebound with renewed investment in the downtown core and upcoming World Cup momentum.

For sellers with single-family homes, the market remains strong overall. But pricing, presentation, and timing are more important than ever. With inventory rising and buyer expectations shifting, the right strategy makes a big difference. This is how we ended up with multiple offers, $100K over asking price on our Sheridan Beach listing just last month, in the middle of November!

And for those just monitoring the market, it's worth noting: if mortgage rates ease and the “lock-in effect” starts to unwind, we may see even more movement in 2026—potentially creating new opportunities on both sides of the market, buyers and sellers.

As always, we're here to help you navigate these shifts with insight, strategy, and personalized guidance. If you're thinking about making a move—or just want to talk through possibilities for 2026—let's connect.