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:
- 44.3% (STRONG)
- INTEREST RATE:
- 6.67% (MANAGEABLE)
- INVENTORY LEVEL:
- 2.6 Months (LOW)
THE BIG DEAL
Housing affordability finds a pulse. Seattle followed up May’s listing surge with 1,601 new listings in June, keeping inventory elevated at 2.6 months. And along with that steady supply? A noticeable uptick in price reductions. It’s not an affordability fix—but it’s movement. Buyers now have more choices, a bit more negotiating power, and a break from the frenzied over-ask madness. Affordability’s not fixed—but at least it’s breathing.Listings Rise, Buyer Breathing Room Expands, and Pricing Power Shifts Slightly in Favor of Strategy Over Speed
"Affordability is the elephant in every open house.” — John L. Scott Mid-Year Housing Forecast 2025
It’s July, the sun’s out, the lawns are mowed, and Seattle’s real estate market? Well, it’s busy—but not bananas. We’ve hit that classic Pacific Northwest midsummer moment: homes are moving, inventory’s ticking up, and yes—price cuts are creeping back in.
If you’ve been sitting on the fence wondering, "Should I list now or wait for the fall slow-down?"—this post is your signal to lean in. The Seattle housing market in July 2025 is showing signs of balance, and for savvy sellers, it’s prime time to shine.
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: Still Competitive, But Cooling From Spring's Sprint
Seattle’s housing market may not be sprinting like it was in March, but it's still jogging at a pretty good clip. In June, 44.3% of resale homes went pending within the first 30 days—a notch down from May’s 50.1%, but still smack in the middle of “Very Strong” territory.
With 1,601 new listings hitting the Seattle market this month, buyers are finally catching a break—inventory ticked up to 2.6 months, and that subtle shift is giving buyers a chance to actually sleep on it. The average time on market is 23 days, and homes are seeing about 12 showings before going pending. That's a far cry from the blink-and-you-missed-it pace of last summer.
Still, don’t get it twisted—homes are closing at 100.8% of list price. That’s not a sleepy market—it’s just not caffeinated anymore.
📌 What This Means
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For Buyers: You've got more leverage—but not a ton. The best homes still move fast, especially under $1.2M. Get pre-approved and ready to write.
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For Sellers: If you list now and position your home well (think: pre-list preparation), you'll still draw serious offers. But overpricing? That strategy is officially retired.
Monthly Inventory Levels: More Choices, Slightly Less Pressure
Seattle's inventory nudged up to 2.6 months, the highest it's been all year. We saw 2,945 active listings in June, giving buyers a breath of fresh air—and a better chance of finding the one.
But let’s be clear: a “balanced market” doesn’t officially start until we hit 4+ months of supply. Right now? We’re still in the Low Inventory zone, leaning seller-friendly.
Homes that are staged, priced competitively, and well-marketed are still getting picked off quickly. But those testing the waters with aspirational pricing? They’re sitting longer.
📌 What This Means
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For Buyers: There’s time to tour more homes and negotiate on properties that have been sitting. But don’t sleep on the gems.
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For Sellers: The new competition is other listings, not just the buyer's budget. Stand out or risk being overlooked.
Interest Rates: 6.67% – Steady, Not Scary
Rates held at 6.67% as of July 1st, 2025. Not thrilling, but not terrifying either. In fact, this "new normal" is surprisingly digestible for many buyers—especially those using buydown strategies or creative financing.
We’re seeing sellers lean into concessions: rate buydowns, closing cost credits, and flexible timelines are back in fashion. It’s a strategic way to sweeten the deal without slicing into your sales price.
📌 What This Means
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For Buyers: Team up with a lender who can help craft payment-friendly scenarios. Explore financing options beyond the sticker rate.
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For Sellers: You don’t have to cut your price—just offer incentives that ease buyer financing fatigue.
Overall Market Trends: Balanced Energy, Still a Seller's Game
Seattle's real estate rhythm has stabilized into something refreshingly sane. There’s no chaos, no desperation, and no 20-offer pileups. Instead, we’re seeing well-priced homes sell quickly, while others linger.
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Average Resale Price: $1,121,434
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Average DOM: 23 days
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Sales-to-List Ratio: 100.8%
📌 Takeaways
For Sellers:
✔ Inventory is growing—get ahead of the late-summer wave
✔ Sharp pricing and presentation are now musts
✔ Consider strategic incentives over blanket price cuts
For Buyers:
✔ Finally, time to explore and make confident offers
✔ Still bring strong terms—clean and quick offers win
✔ Be open to areas like Snohomish County for better value
Pricing vs. Historical Trends: A Market That’s Holding Strong
If you’re waiting for prices to fall, you might be waiting a while. Compared to five years ago, home values in the Seattle area have held remarkably steady—even as rates doubled.
Residential Resale
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June 2025 Avg Price: $1,121,434
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June 2020 Avg Price: $931,696
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5-Year Change: +20.3%
New Construction
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June 2025 Avg Price: $982,044
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June 2020 Avg Price: $1,033,816
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5-Year Change: -5% (driven by builder incentives & rate pressure)
Condos
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June 2025 Avg Price: $691,843
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June 2020 Avg Price: $559,409
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5-Year Change: +23.6%
📌 TL;DR: The floor is solid. Seattle home prices are staying strong—just without the runaway escalations of years past.
Rent vs Buy – The Seattle Dilemma
Right now, renting a 3-bed in Seattle runs about $3,825/month. Buying a $700K home at 6.67% with 20% down? Pretty similar.
But only one of those builds equity.
📌 If you're planning to stay 3+ years, buying is still your better long-term play. And today’s buyers are negotiating better terms than we’ve seen in years.
What About the Fed?
Rate watchers, don’t get your hopes up just yet. The Fed has signaled patience with inflation, meaning no major drops are expected before late 2025. We’re likely floating in the 6.5–7% mortgage zone for the rest of the year.
And remember: if rates drop, demand spikes. That could mean higher prices and more bidding wars.
Summer Seasonality: We’re Peaking Now
Summer is when Seattle’s real estate scene hits its stride—new listings, peak buyer activity, and beautiful curb appeal. But by August? The energy cools, and distraction sets in.
📌 Sellers: Don’t wait for fall. July is your moment.
📌 Buyers: Serious sellers are listing now. Get out there before the next wave of competition.
A Return to BalanceAfter years of pandemic disruptions and interest rate lock-ins, the housing market is finally moving toward a healthier balance. May and June consistently bring the highest volume of new listings, and this year is no exception. Buyers are gaining options and negotiating power, while sellers are pricing more realistically and still seeing solid demand. This renewed equilibrium marks the most balanced conditions we’ve seen in over five years, creating a window of opportunity for both sides to make confident, well-timed moves. J Lennox Scott
LENNOX SCOTT
CEO of John L. Scott Real Estate
Seattle Real Estate GRAPHS AND Data
Seattle’s inventory climbed again in June, now sitting at 2.5 months—up from 2.1 in May and nearly a full month higher than 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 deep in seller-skewed territory. If no new homes hit the market starting tomorrow, Seattle would burn through its entire housing stock in just about 75 days.
Let’s unpack the latest activity:
- 🏡 2,006 new listings hit the market
- 🔁 970 homes went pending
- ✅ 834 homes sold
- 📦 2,917 homes total on the market
That’s a solid surge in inventory—and it’s giving buyers a bit more breathing room. But let’s be honest: in that golden $500K–$1.25M range? Homes are still drawing serious attention. Nearly 45% of homes went pending in the first 30 days, a slight dip from May’s 50%, but still squarely within “Very Strong” Sales Activity territory.
💎 Luxury Lane Update
In Seattle’s $2M+ market, things move a bit slower—but they do move. Buyers in this tier are experienced, intentional, and picky. They’re not here for projects. Homes with thoughtful upgrades, lush landscaping, and a walkable lifestyle are winning the high-end game. 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 hovering around 6.67%, Seattle buyers aren’t flinching. They’re adapting—using buydowns, flex terms, and creative structures to make the math 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 June 2025, 44.3% of Seattle homes went pending within the first 30 days. That’s a modest drop from May’s 50.1%, nudging us out of “Surge” mode and into a more grounded—but still very competitive—“Very Strong” zone.
The market's pace isn’t slowing as much as it’s refining. Spring’s urgency has eased, but buyers are still very much in the game—they’re just showing up with checklists instead of rose-colored goggles.
With 1,601 new listings and growing inventory, buyers now have options. That means fewer rash offers and more thoughtful bids. Still, homes priced between $500K and $1.25M remain the sweet spot: attractive, attainable, and consistently drawing strong (sometimes above-ask) offers.
Even higher-tier homes in the $1.5M–$2M range are moving quickly—especially those that feature smart layouts, modern energy efficiencies, and prime neighborhood appeal. The days of “price it, list it, sell it in two days” might be gone, but the right homes are still going under contract within a few weeks.
📌 Key Takeaways
For Buyers:
✔️ Nearly half of all listings are gone in 30 days. Don’t overthink the right home—just come ready to write.
✔️ Pre-approval + clean terms = serious seller attention.
✔️ Want leverage? Look just above your price range for homes with longer DOM or recent price cuts.
For Sellers:
✔️ You’ve still got the edge—but only if you come to market prepared.
✔️ Buyers are savvy. A professionally prepped, well-presented home sells fast and often nets top dollar.
✔️ Bonus points for lifestyle features: EV chargers, flexible work-from-home spaces, and fresh outdoor zones are all trending.
Bottom line? The intensity has shifted from frantic to focused. Seattle’s still a seller-friendly market—it just rewards preparation and precision more than ever.
PRICE
Seattle’s average residential resale price in June 2025 clocked in at $1,121,434—a slight dip from May’s $1,263,774, but again, this isn’t a sign of a market in retreat. It’s more of a mid-summer recalibration. With inventory rising and buyers taking their time, sellers are getting sharper with pricing—and it’s paying off.
📊 Price by Property Type:
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🏠 Single-Family Homes: $1,142,811
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🏢 Condos: $691,843
These figures show steady strength, and more importantly, long-term gains.
📈 Five-Year Appreciation Snapshot (Since June 2020)
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Overall Market: ⬆️ 24.1%
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Single-Family Homes: ⬆️ 25.3% (from ~$912K to $1.14M)
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Condos: ⬆️ 22.7% (from ~$557K to ~$691K)
Even with slight month-to-month shifts, the five-year view is clear: Seattle real estate builds wealth. Appreciation has remained consistent—even through pandemic shocks and interest rate whiplash.
💰 Pricing Dynamics
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List-to-Sale Ratio: 100.8% — on average, homes are still closing slightly above list price
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Condos: Selling at 99.3% of list — steady, but a bit more price-sensitive
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Sweet Spot: $500K–$1.25M continues to attract multiple offers
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Overpriced/Dated Listings: Sitting longer and facing inevitable price adjustments
📌 Key Takeaways
For Sellers:
✔️ If you’ve owned your home 5+ years, you’re likely sitting on 20–30% equity gains. But today’s buyer is informed—they’re not overpaying for dated features or wishful pricing. Nail the price and the presentation from day one.
For Buyers:
✔️ Still holding out for a crash? Might want to pack a lunch. Seattle’s prices may wobble seasonally, but the long-term trend is up. Buy now, ride the appreciation curve, and gain equity while the market breathes.
TIMING
We’re cruising through the final stretch of what John L. Scott calls the Spring Surge Phase—and if you’ve been anywhere near a home showing or open house lately, you’ve felt the tempo. This is Seattle’s fastest-paced phase of the housing cycle: more listings, more buyers, and a whole lot of action.
Here's what June looked like in real-time:
- 🌷 1,601 new listings hit the Seattle market
- 🔁 965 homes went pending
- ✅ 909 homes closed
- ⚔️ Homes under $1.25M? Still the front lines—where competition is high, and speed matters
Even with inventory rising to 2.6 months, buyer demand hasn’t cooled—it’s just become more intentional. March and April gave us the frenzy. June delivered the strategy phase. We’re still seeing urgency, but now it’s paired with homework, preparation, and strong terms.
📌 What This Means
For Sellers:
✔️ This is the moment. More listings are coming, but buyer motivation is still high—especially before mid-July distractions kick in.
✔️ Use the season to your advantage: patios, curb appeal, and daylight hours are your best friends.
✔️ Prep it. Price it. Launch it. And let our staging tips do the talking.
For Buyers:
✔️ The floodgates are open on listings—but so are buyer inboxes.
✔️ If you’re shopping under $1.25M, bring your A-game.
✔️ Pre-approval, fast decision-making, and a strong offer package will help you stand out in a competitive pool.
Bottom line? We’re at seasonal peak velocity—and it won’t last forever. If you’re looking to buy or sell, July is the sweet spot before the summer slowdown and August vacations take the air out of the market.
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 June and hit mid-year stride, the Seattle housing market isn’t just holding steady—it’s proving its resilience. Even as things cool slightly from spring’s sprint, buyers and sellers are showing up ready to play, with smarter strategies and sharper expectations.
- 🕒 Homes are selling in 23 days on average—just a touch slower than May, but still lightning-fast by historical standards.
- 💰 List-to-sale price ratio is 100.8%—proof that homes priced right are still commanding top dollar.
- ⚡ Sales Activity Intensity™ landed at 44.3%, down from May’s 50.1%, but still firmly in “Very Strong” territory.
- 📦 Inventory climbed to 2.6 months, offering more selection but keeping the market tilted toward sellers.
- 📉 Interest rates are holding at 6.67%, keeping affordability tight but not off the table for serious buyers.
🔮 Looking Ahead
📌 For Sellers:
You still have the upper hand—but it’s no longer autopilot. Price to meet the moment, prep with intention, and don’t delay your listing. Inventory is rising. If your home is under $1.5M, the field is still strong. Over $2M? Luxe details and lifestyle features will help you win the game.
📌 For Buyers:
There’s more to choose from, and fewer bidding wars than last year. But the best homes? Still vanish fast. This market rewards pre-approval, preparation, and precision. The longer you wait, the more you’ll pay—in price and competition.
🧭 The Big Picture
The Seattle housing market in July 2025 is moving with focus, not frenzy. Listings are up, rates are steady, and both sides of the transaction are being strategic. Sellers are still closing strong—if they hit the market smart. Buyers are cautious but competitive—especially in the $500K–$1.25M sweet spot.
This is not a wait-and-see market. It’s a watch-and-move market.
Whether you’re prepping to sell, planning to buy, or just keeping tabs on your neighborhood, one thing is clear: strategy wins in 2025.
Looking for expert guidance to navigate this fast-moving market? Reach out to The Madrona Group, your trusted Seattle real estate pros. Let’s make your next move the smartest one yet.
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