SEATTLE HOUSING MARKET FORECAST
Home Prices, Interest Rates, Real Estate Statistics, Video and Charts
TABLE OF CONTENTS
3 KEY INDICATORS
Seattle Housing Market
- SALES ACTIVITY INTENSITY:
- 40.6% (STRONG)
- INTEREST RATE:
- 6.63% (MANAGEABLE)
- INVENTORY LEVEL:
- 2.8 Months (LOW)
THE BIG DEAL
Seattle’s market has dropped three full notches of hotness since spring — a rare mid-year cool-down. Back in March and April, a sizzling 75% of new listings were going pending within the first month. Now? We’re at 40.6% — still “Strong,” but that’s a steeper fall than the typical two-level seasonal slide we see from spring to fall. Combine that with inventory climbing to 2.8 months and mortgage rates easing to 6.63%, and buyers are suddenly finding themselves with more time, more options, and more room to negotiate.From Frenzy to Focus: Seattle’s Summer Market Cools Three Levels as Buyers Gain Breathing Room
"We’ve stepped down three levels from spring’s heat — rare for summer — but the market’s still running strong." — Jason Fox, The Madrona Group
August 2025 is bringing Seattle’s real estate market back to earth. After a spring where three out of four new listings were snapped up in the first month, we’ve cooled to 40.6% — still “Strong,” but a clear step back from the “Extreme Frenzy” pace we saw earlier this year. That’s a three-level drop in market intensity, something we usually only see spread over the entire spring-to-fall transition.
Inventory has climbed to 2.8 months, the highest level in 2025, while mortgage rates have inched down to 6.63%. The combination means buyers now have more choices and a better shot at making a deal — without feeling like they’re sprinting through a real estate obstacle course. Sellers can still win big, but only with the right prep, price, and positioning.
Before we dive deeper, it’s worth highlighting the 2025 Mid-Year Housing Forecast by Lennox Scott of John L. Scott Real Estate. In this comprehensive report, Scott identifies four key themes shaping today’s market: homeowner hesitancy, buyer gridlock, market intensity, and economic outlook. These forces are creating a market defined less by chaos and more by strategy—perfect for those ready to play smart.
Detailed Explanation of the 3 Key Indicators
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Sales Activity Intensity:
- Definition: This metric reflects the percentage of homes that go under contract within the first 30 days of listing. It's a direct indicator of the market's temperature, showing how quickly homes are moving from listing to pending status.
- Scale:
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- <25%: Buyer's market – low demand, homes take longer to sell.
- 25%: Healthy market – balanced demand and supply.
- 35%: Strong market – increasing demand, sellers have a slight advantage.
- 45%: Very strong market – high demand, multiple offers are common.
- 55%: Surge – very high demand, significantly more buyers than available homes.
- 65%: Frenzy – extreme demand, homes sell extremely quickly, often well above asking price.
- 75%+: Extreme frenzy – unprecedented demand, highly competitive conditions.
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Monthly Inventory Levels:
- Definition: This measures the number of months it would take to sell all current listings at the current sales pace without any new listings being added. It's a critical indicator of market balance.
- Scale:
- 0-1 month: Severe shortage – extremely low inventory, seller's market.
- 1-2 months: Shortage – low inventory, strong seller's advantage.
- 2-3 months: Low – less inventory, leaning towards sellers.
- 3-4 months: Healthy – balanced between buyers and sellers.
- 4-5 months: Selectability – more options for buyers, slight buyer's advantage.
- 5+ months: Buyer's market – high inventory, buyers have leverage.
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Interest Rates:
- Definition: This refers to the average mortgage rate available to homebuyers. Interest rates are a significant factor affecting affordability and buyer demand.
- Scale (not a fixed scale but commonly accepted ranges):
- 3-4%: Excellent – very favorable for buyers.
- 5-6%: Good – relatively affordable for most buyers.
- 7-8%: Uncomfortable – can slow down buyer activity as financing becomes more expensive.
- 9-10%: Challenging – high rates can lead to decreased demand and slower market activity.
Each of these indicators plays a crucial role in interpreting the dynamics of the Seattle housing market. By analyzing trends within these metrics, we can better understand the forces at play, predict future movements, and strategize accordingly. Whether you're looking to buy a home, sell one, or simply keep an eye on market developments, these indicators provide the insights needed to navigate the complexities of Seattle's real estate landscape.
Sales Activity Indicator: Three Levels Cooler, Still Strong
Seattle’s housing market has eased from its spring sprint, but it’s far from idle. Back in March and April, 75% of new listings were going pending within the first month — the “Extreme Frenzy” zone. Now, we’ve cooled to 40.6%, which still sits firmly in “Strong” territory. That’s a rare three-level drop in market intensity, compared to the typical two-step slowdown from spring to fall.
In August, 1,406 new listings hit the Seattle market, pushing inventory up to 2.8 months — the highest this year. The average time on market stretched to 27 days, and homes are seeing about 12 showings before going pending. Buyers now have more time to decide, but competition for well-priced homes remains alive and well.
Still, don’t get it twisted — homes are closing at 99.6% of list price. This market isn’t sleepy; it’s just trading caffeine for a steadier pace.
📌 What This Means
For Buyers: You’ve got more breathing room, but the best homes still move quickly. Get pre-approved and stay ready.
For Sellers: Well-prepared, competitively priced listings still draw strong offers. Overpricing is a fast track to sitting longer.
Monthly Inventory Levels: More Choices Than Any Time This Year
Seattle’s inventory in August rose to 2.8 months, crossing into the upper end of the “Low” range. That’s up from 2.6 months in July and marks the most selection buyers have had in 2025.
We saw 2,851 active listings this month, giving buyers a better chance to find the right fit. Homes that are staged, priced competitively, and well-marketed are still getting scooped up quickly. Those priced optimistically? They’re hanging around.
📌 What This Means
For Buyers: You’ve got more opportunities to negotiate — especially on listings with longer days on market.
For Sellers: Your competition is growing. Stand out with strong presentation and realistic pricing.
Interest Rates: 6.63% – Manageable and Stable
Rates nudged down to 6.63% from last month’s 6.67%. It’s not a dramatic change, but in today’s affordability climate, even a small dip can make a difference. Buyers are leaning into buydown strategies, seller concessions, and creative financing to keep payments within reach.
📌 What This Means
For Buyers: Lock in rates and explore buydown options to make the numbers work.
For Sellers: Offering concessions can keep your price intact while making your home more attractive to buyers.
Overall Market Trends: Cooling, But Still Seller-Friendly
Seattle’s summer market is calmer than spring, but sellers still hold an edge. Inventory is at a yearly high, prices have adjusted seasonally, and market times are a bit longer — yet demand remains steady.
Average Resale Price: $1,028,375
Average DOM: 27 days
Sales-to-List Ratio: 99.6%
📌 Takeaways
For Sellers:
✔ Inventory is at its highest point this year — list sooner to beat fall competition.
✔ Presentation and pricing are critical in this more selective environment.
✔ Concessions can be more effective than price cuts.
For Buyers:
✔ You have more leverage than you did in spring.
✔ Still act quickly on the best-priced homes.
✔ Look to longer-DOM listings for negotiation potential.
Pricing vs. Historical Trends: Long-Term Strength
Despite a seasonal price dip from July, long-term appreciation remains solid.
Residential Resale
- Aug 2025 Avg Price: $1,028,375
- Aug 2020 Avg Price: $931,696
- 5-Year Change: +10.4%
New Construction
- Aug 2025 Avg Price: $1,114,610
- Aug 2020 Avg Price: $865,529
- 5-Year Change: +28.8%
Condos
- Aug 2025 Avg Price: $632,853
- Aug 2020 Avg Price: $596,536
- 5-Year Change: +6%
📌 TL;DR: Seattle home values are holding steady over the long run, even with short-term seasonal fluctuations.
Rent vs Buy – The August Equation
Renting a 3-bed in Seattle still averages around $3,800/month. Buying a $700K home with 20% down at 6.63%? Similar monthly payment — but only one option builds equity.
📌 If you’re staying 3+ years, buying remains the stronger financial move, especially with today’s improved negotiating room.
What About the Fed?
No major policy shifts yet. The Fed remains cautious with inflation, and rates are expected to hover in the 6.5%–6.75% range through the rest of the year. A drop in rates would likely spark increased demand — and potentially more bidding wars.
Summer Seasonality: Slowing Into Fall
We’re past the seasonal peak. August brings more distractions and slightly slower buyer activity, but serious buyers remain engaged.
📌 Sellers: List now to capture motivated buyers before fall distractions take over.
📌 Buyers: Use this slower pace to shop smart and negotiate.
Summer Selling Season Holds StrongSales Activity Intensity™ remains elevated this summer, driven by improved inventory selection and a steady rise in buyer engagement compared to recent years. While the market isn’t experiencing the frenzy of past cycles, August is expected to maintain a strong level of transactions. With early signs of momentum, this balanced yet active environment is likely to carry throughout the fall season.J Lennox Scott
LENNOX SCOTT
CEO of John L. Scott Real Estate
Seattle Real Estate GRAPHS AND Data
Seattle’s inventory climbed again in August, now sitting at 2.8 months — up from 2.6 in July and well above the ultra-tight squeeze we saw earlier this spring. That’s a clear tilt toward balance, but don’t get too comfy: we’re still in seller-skewed territory. If no new homes hit the market starting tomorrow, Seattle would burn through its entire housing stock in just about 84 days.
Let’s unpack the latest activity:
🏡 1,406 new listings hit the market
🔁 870 homes went pending
✅ 811 homes sold
📦 2,851 homes total on the market
That’s the most inventory we’ve seen all year — and it’s giving buyers more breathing room. But in that golden $500K–$1.25M range? Homes are still drawing serious attention. In fact, 40.6% of all listings went pending in the first 30 days. That’s “Strong” territory — a rare three-level drop from the “Extreme Frenzy” we saw in spring, when 75% of listings were selling that fast.
💎 Luxury Lane Update
In Seattle’s $2M+ market, things move more deliberately — but they do move. Buyers in this tier are intentional and selective, favoring homes with thoughtful upgrades, lush landscaping, and a walkable lifestyle. If you’re selling luxury? Go full HGTV, not DIY.
📉 Why Inventory Still Matters
Let’s zoom out:
- Inventory under 3–4 months? Still low supply
- Low supply + steady demand = continued price pressure
Even with mortgage rates holding around 6.63%, Seattle buyers aren’t shying away. They’re adapting — using buydowns, flexible terms, and creative financing to make the numbers work. This market isn’t built on panic — it’s built on strategy.
📌 Key Takeaways
For Buyers:
✔️ You’ve got more to see — but don’t wait too long on the right one
✔️ Be flexible, be prepared, and know where you can get an edge
✔️ Want value? Look to longer-DOM listings with motivated sellers
For Sellers:
✔️ Inventory is rising — get ahead of the curve now, not later
✔️ Homes under $1.5M are still moving fast — if they’re priced right
✔️ In the $2M+ range? Invest in staging, landscaping, and listing photography — it’s not optional anymore
MARKET INTENSITY
In August 2025, 40.6% of Seattle homes went pending within the first 30 days. That’s down from July’s 44.3% and well below the 75% “Extreme Frenzy” pace we saw in spring — a rare three-level seasonal cool-down, moving us from “Extreme Frenzy” → “Surge” → “Very Strong” → “Strong.”
The pace hasn’t collapsed — it’s simply shifted from frantic to focused. Buyers are still in the game, but they’re arriving with checklists instead of blindfolds. More inventory (now 2.8 months) means more thoughtful offers, but in the $500K–$1.25M sweet spot, competition remains fierce and multiple offers are still common.
Even higher-tier homes in the $1.5M–$2M range are selling briskly when they feature smart layouts, modern efficiencies, and prime neighborhood appeal. The “list it Friday, sell it Monday” routine is rare now, but the right home still finds a buyer within weeks.
📌 Key Takeaways
For Buyers:
✔ Nearly half of listings in the best price bands are gone in 30 days — be ready to move.
✔ Pre-approval + clean terms = stronger negotiation position.
✔ For leverage, look just above your budget at homes with longer DOM or recent price cuts.
For Sellers:
✔ You still have the upper hand — but only if you prep and price strategically.
✔ Buyers are savvy; staging, updates, and professional marketing are now must-haves.
✔ Lifestyle features like EV chargers, home offices, and upgraded outdoor spaces stand out.
Bottom line? The heat has dialed down, but Seattle’s still a seller-friendly market. The winners this season are the ones who bring precision and preparation.
PRICE
Seattle’s average residential resale price in August 2025 came in at $1,028,375 — a seasonal step down from July’s $1,121,434. This isn’t a market retreat — it’s a late-summer recalibration. With inventory at its highest level this year (2.8 months) and buyers taking more time, sellers are sharpening their pricing strategies — and it’s making a difference.
📊 Price by Property Type:
🏠 Single-Family Homes: $1,161,236
🏢 Condos: $632,853
These figures reflect steady long-term strength, even if monthly numbers shift.
📈 Five-Year Appreciation Snapshot (Since August 2020)
- Overall Market: ⬆️ ~10.4%
- Single-Family Homes: ⬆️ 27.8% (from ~$908,853 to $1,161,236)
- Condos: ⬆️ 6% (from ~$596,536 to $632,853)
Even with seasonal dips, the long-term view is clear: Seattle real estate continues to build wealth. Appreciation has stayed consistent through pandemic shocks, rising rates, and shifting market conditions.
💰 Pricing Dynamics
- List-to-Sale Ratio: 99.6% — on average, homes are selling just under asking price.
- Condos: Selling at 98.2% of list — more price-sensitive than single-family homes.
- Sweet Spot: $500K–$1.25M continues to attract multiple offers.
- Overpriced/Dated Listings: Seeing longer DOM and inevitable price cuts.
📌 Key Takeaways
For Sellers:
✔ If you’ve owned your home 5+ years, you’ve likely gained significant equity. But buyers are informed — price realistically from day one and present your home well.
✔ The market still rewards preparation and accuracy over ambition.
For Buyers:
✔ Waiting for a big price drop? History says you’ll be waiting a while.
✔ Seasonal dips are the opportunity — buy now, and let long-term appreciation do its work.
TIMING
We’ve officially moved past the high-speed phase of Seattle’s housing cycle and into the late-summer slowdown. March and April brought the frenzy, June and July shifted into strategy mode, and now August is delivering a more deliberate pace. More listings, more choices, and slightly longer days on market are giving buyers room to think — but not too much.
Here’s what August looked like in real-time:
☀️ 1,406 new listings hit the Seattle market
🔁 870 homes went pending
✅ 811 homes closed
⚔️ Homes under $1.25M? Still the battleground — competition is steady, and clean, well-priced homes don’t sit long.
With inventory at 2.8 months — the highest this year — buyer demand hasn’t disappeared; it’s simply become more selective. Urgency is now paired with checklists, financing prep, and strategic offers instead of split-second decisions.
📌 What This Means
For Sellers:
✔ This is still your moment, but buyers are choosier — prep, price, and present your home to stand out.
✔ Curb appeal, outdoor living spaces, and move-in-ready condition win big.
✔ Consider listing before the deeper fall slowdown sets in.
For Buyers:
✔ More listings mean more chances to find “the one.”
✔ If you’re in the under-$1.25M range, speed and preparation are still key.
✔ Pre-approval and strong terms remain your best tools in a competitive pool.
Bottom line? We’re in late-summer mode: active, but not urgent. The buyers left in the game are serious, and the sellers who adapt to this season’s slower-but-steady energy are still walking away with strong offers.
JOB AND POPULATION GROWTH
Washington State Non Farm Employment Numbers
WA Employment Security Department
[Source: U.S. Census Bureau]
Seattle Market Stats
STATS PROVIDED BY: INFOSPARK
RESIDENTAL RESALE
- $1,121,434 was the average sold price for listings in Seattle.
- 1,601 new listings went on the market this month.
- 2,945 homes were for sale during the month.
- 965 homes went pending in Seattle.
- 909 homes sold this month.
- 2.6 months of inventory available in Seattle.
- 23 was the average days on market for a home to sell in Seattle.
- 100.8% was the average listing price vs. sales price percentage.
- $610 was the average price per square foot in Seattle.
- $1,019,684,493 was the total closed sales volume for Seattle.
- 6.67% was the interest rate.
- 44.3% of homes sold in the first 30 days in Seattle.
- 12 Average showings to Pending.
- 4.4 Showings per Listing.
NEW CONSTRUCTION
- $982,044 was the average sold price for new construction in Seattle.
- 255 new construction listings went on the market this month.
- 559 new construction homes were for sale during the month.
- 133 new construction homes went pending in Seattle.
- 108 new construction homes sold this month.
- 4.9 months of new construction inventory available in Seattle.
- 33 was the average days on market for a new construction to sell in Seattle.
- 99.3% was the average listing price vs. sales price percentage.
- $651 was the average price per square foot in Seattle.
- $106,060,747 was the total closed sales volume for Seattle.
- 6.67% was the interest rate.
- 9 Average showings to Pending.
- 2.8 Showings per Listing.
SEATTLE HOUSING MARKET Summary
As we close out August, Seattle’s housing market is showing a rare pattern — a three-level cool-down from spring’s frenzy — yet it’s still holding firm in “Strong” territory. Buyers and sellers are both active, but the pace is more strategic than sprinting.
🕒 Homes are selling in 27 days on average — a touch slower than July, but still quick by historical standards.
💰 List-to-sale price ratio is 99.6% — well-priced homes are still commanding close to asking.
⚡ Sales Activity Intensity™ landed at 40.6%, down from July’s 44.3% and far below the 75% peak in spring, signaling more breathing room for buyers.
📦 Inventory climbed to 2.8 months, the highest level this year, offering the most selection we’ve seen in 2025.
📉 Interest rates edged down to 6.63%, keeping affordability tight but stable for committed buyers.
🔮 Looking Ahead
📌 For Sellers:
You still have the upper hand, but autopilot won’t cut it. Price to the current market, prep with intention, and list before fall distractions pull buyers away. Under $1.5M? Still moving fast if presented well. Over $2M? Luxe details, flawless staging, and strong marketing are essential.
📌 For Buyers:
More choice and fewer bidding wars than last year, but the best homes still move quickly. This is a market for prepared buyers — have your pre-approval ready and know your numbers. The longer you wait, the more competition you may face if rates dip.
🧭 The Big Picture
The Seattle housing market in August 2025 is still strong, just less caffeinated than spring. Inventory is up, rates are stable, and both sides are making moves with strategy in mind. Sellers can still score strong offers; buyers have more leverage than they’ve had in years.
This isn’t a wait-and-see market. It’s a watch-and-move market.
Whether you’re selling, buying, or tracking the trends, one thing is clear: in 2025, preparation wins.
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