We’re back on the airwaves!
This time, both Jason Fox and Joe Kiser of The Madrona Group joined Pete Lisoskie on the Home Matters show on KIRO 97.3 FM, diving deep into Seattle real estate insights of 2025. If you’ve been wondering whether it’s still a good time to buy, how ADUs are impacting the market, or what rising rates really mean — this episode has it all.
Jason’s no stranger to the show, but this was the first time Joe joined the mic, and listeners got to hear the full story behind The Madrona Group — how it started with two guys over breakfast and turned into seven offices across Puget Sound.
In this episode, we covered:
- How Jason and Joe turned a friendship into a thriving real estate business
- The story behind their name, The Madrona Group, and its Pacific Northwest roots
- Why Seattle home prices soared 40% during COVID — and what’s happening now
- How to price, stage, and market homes that still sell fast in 2025
- ADUs, DADUs, and the shift in zoning across Seattle
- First-time buyer strategies (even with high rates!)
- Why today’s market still offers serious opportunities for savvy buyers and sellers
Whether you’re in King, Snohomish, or Island County — or just curious about how things have changed — this episode delivers practical advice and plenty of personality.
🎧 Watch the full podcast on YouTube
From Breakfast Talks to a Real Estate Brand with Seven Offices
Jason and Joe’s story started like a lot of great partnerships — over breakfast.
They’d been friends for more than 20 years before teaming up professionally. Joe was selling homes, while Jason was busy building websites and marketing strategies for real estate agents across the country. Over time, they kept circling back to the same idea: why not combine their talents?
One breakfast meeting led to another, and eventually they decided to go for it. But they didn’t want to be “Joe and Jason Real Estate.” They wanted a name with meaning — something that spoke to their values and connection to the Pacific Northwest. After a long day of throwing ideas around, Jason suggested The Madrona Group, inspired by the Madrona trees known for their deep roots and strong presence — just like the communities they serve. It also happened to be the name of the street Jason grew up on.
Their first office was a virtual one in Ballard — no storefront, just a small team meeting online daily. From there, they steadily grew. Today, The Madrona Group has seven offices across the region, including Ballard, Bothell, Des Moines, Federal Way, Mukilteo, Vashon and West Seattle — all built on trust, relationships, and a shared vision that started over coffee and conversation.
What’s Really Going On in the Seattle Market?
💰 Home Prices Are Holding — But It’s Not a Free-For-All Anymore
Jason and Joe explained that although prices haven’t dropped significantly, they’ve plateaued after the wild 40% surge during the pandemic. If your wages didn’t grow by 40% (and let’s face it, whose did?), then buying feels tougher now than ever.
In King and Pierce Counties, the home price-to-income ratios are stretching — some areas are at 8x or 9x income. That’s a tough sell for first-time buyers.
🏡 Inventory is Low. Demand is High. But Buyers Are Picky.
During COVID, homes flew off the shelves. “We could’ve sold a popsicle stand,” Jason joked. But in 2025, homes that aren’t staged, cleaned, and marketed professionally are sitting longer. Buyers have more choices now, and presentation really matters.
Still, if a house checks all three boxes — price, promotion, and presentation — it’s moving fast.
ADUs, DADUs & Zoning Changes — The Seattle Expansion Strategy
Accessory Dwelling Units (ADUs) and Detached Accessory Dwelling Units (DADUs) are becoming a major force in Seattle real estate.
As zoning laws continue to shift under the One Seattle Plan, homeowners and developers alike are finding new ways to add value — and density — to existing lots.
Applications to build ADUs and DADUs have quadrupled in recent years as the city has eased restrictions, allowing for more flexible housing solutions. This has opened the door for more multi-generational living, rental income strategies, and creative use of underutilized property — but make no mistake, it’s not cheap. A 1,200-square-foot DADU can cost anywhere from $400,000 to $500,000 to build when you factor in permits, design, labor, and materials.
Jason and Joe explained how savvy developers are responding with a “three-pack” approach: they’ll purchase a single-family home on a corner lot, add one or two DADUs, and then either rent out the units or sell them individually. In some cases, they’ll even form condo associations to legally split the lot into multiple, financeable units — a strategy that helps offset costs and expand housing inventory.
And here’s where it gets interesting: these developers aren’t just looking at the home itself — they’re buying based on the potential of the lot. That means if you’re a homeowner in a target neighborhood, a developer might pay more for your property than a traditional homebuyer ever would.
Whether you’re thinking about building an ADU yourself or selling to someone who sees that potential, zoning changes are shifting the game — and if you’re not factoring in land use potential, you might be leaving money on the table.
Buyers Have More Power Than You Think
Despite what the headlines might say, today’s market actually gives buyers more leverage than they’ve had in years — if they know how to use it.
While interest rates hovering in the 6s have cooled some of the urgency we saw during the COVID housing boom, that shift has opened the door for smarter negotiations.
Jason explained how 2-1 buy downs and seller concessions are becoming essential tools for buyers looking to make the numbers work. A 2-1 buy down temporarily lowers your interest rate for the first two years of the loan — which can shave hundreds off your monthly payment in those early years. It’s a way to ease into ownership without locking in a high rate long term.
And here’s the kicker: the seller often pays for it as part of the deal, rather than reducing the price. For sellers, it’s a win too — their home still appraises higher, and buyers feel the financial relief they need to say yes.
Joe added that buyers today need to do more than just scroll listings. Shop around for lenders, compare loan programs, and don’t be afraid to ask tough questions about fees and flexibility. Getting pre-approved before you start house hunting is more than a formality — it’s your ticket to faster decisions and stronger offers.
This is also where an experienced agent makes all the difference. Joe and Jason have helped buyers structure deals with built-in rate buy downs, full closing cost coverage, and even post-inspection credits — all without overpaying. The market may be tricky, but with the right team and a clear game plan, buyers can still get a great deal in 2025.
Island County vs King County: Two Very Different Markets
While King County remains fast-paced and competitive, Island County (including Vashon and Whidbey) moves at a slower pace — “island time,” as they call it. Homes sit longer, but they’re often desirable for remote workers or multi-generational families looking for peace, space, and character.
Jason and Joe emphasized the importance of local expertise. Even with their broad reach, they rely on trusted local agents and vendors when serving clients in those unique island communities.
First-Time Buyers, FHA, and VA Options in 2025
If you’re a first-time buyer or veteran, there’s still hope. Some conventional loans offer as little as 3% down, and VA loans often allow 0% down for qualified buyers.
The challenge is affordability. That’s where rate buy-downs, gifted down payments, and multi-generational co-buying come into play. Joe explained that many families are pooling resources to help younger generations get into homes, and it’s a strategy worth considering if you’re feeling priced out.
Interest Rate Outlook: Stability Ahead?
At the time of the podcast recording, mortgage rates were hovering around 6.39%, according to Mortgage News Daily.
While that might feel high to anyone who remembers the record-low rates during the pandemic, it’s actually much closer to the historical norm.
Jason and Joe agreed: this is likely the new baseline for a while. The good news? It’s stable.
Rates have pulled back from the recent highs and appear to be settling in the low-to-mid 6% range. In fact, many economists — including those closely watching Fed policy — are projecting rates could dip toward 5.5% by mid-to-late 2026, especially if inflation continues to cool and economic growth steadies.
That kind of slow, steady decline could be just what the housing market needs: predictability.
Buyers can plan more confidently, and sellers can list with fewer pricing surprises.
Joe emphasized that this isn’t the time to sit on the sidelines waiting for another 3% miracle. “That ship has sailed,” he said. “But that doesn’t mean the market isn’t workable — it just means strategy matters more than ever.”
For buyers with a solid plan (and the right team), the current environment offers room to negotiate, get creative with financing, and secure a home without overpaying. And if rates do drop in the future, there’s always the option to refinance.
Final Thoughts: A Market That Rewards Preparation
Seattle’s housing market in 2025 isn’t broken — it’s just recalibrating. The frothy days of bidding wars and instant sales are gone (for now), but there’s opportunity for both buyers and sellers who understand how to play it.
Whether you’re thinking of buying, selling, investing, or just curious about what’s next, this conversation on Home Matters is full of tips you can actually use.
🎧 Watch or listen to the full podcast here 👉 https://youtu.be/2ZIZvPe5e4M?si=nujpJ2F-beFqX3j2
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