Market Update — February 2025
We firmly believe timely and relevant data is key to making good decisions. To this end, we are committed to providing our community and clients with actionable data and insights about the local real estate market.
Local real estate market
With the data from January 2025 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).
Median price: The chart below shows the latest median sales prices of homes over the past three years in the Greater Seattle area over the past three years:
Homes sold: 3,727 homes were sold in January 2025 (up 10.8% compared to 3,364 in January 2024). The median price of $615,000 which represents a 3.6% increase YOY. This total sale volume translates to a dollar value of about $2.8B.
New construction: 722 new construction homes were sold in January 2025. The median sale price of new construction homes was $760,500.
Months of inventory: Given the current quantity of supply, it’ll take 2.75 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. The counties with the lowest months of inventory in January 2025 were Snohomish (1.69), Kitsap (2.14), Pierce (2.23), Thurston (2.37), and King (2.54). The data indicates the persistent shortage of supply relative to demand.
New listings: 6,693 new listings were added to the NWMLS database in January 2025 representing an increase of 35.1% compared to January 2024.
Mortgage rates: This month the Freddie Mac rate shows no major month-over-month change.
Average 30-Year Fixed Mortgage Rates over the past 12 months (Source: Freddie Mac)
Broader U.S. economy
January Jobs Report: A Mixed Bag: The Bureau of Labor Statistics (BLS) reported an addition of 143,000 jobs in January, below the forecast of 170,000. However, upward revisions for November and December added an extra 100,000 jobs, which bolstered the overall figures. The unemployment rate improved, decreasing from 4.1% to 4.0%.
Annual Home Appreciation Forecast Increased: Home prices nationwide increased modestly in December: CoreLogic reported a 0.03% rise and a 3.4% annual increase, while ICE noted a 0.2% rise and the same 3.4% yearly growth. CoreLogic expects a 0.2% decline in January and 4.1% appreciation for the year ahead, up from previous forecasts of 3.8% and 2.4%. This upward revision is noteworthy given CoreLogic’s typically conservative estimates.
