Seattle’s housing market remains active as we move into February 2025. Sales are holding strong despite interest rates at 7.05%, showing that buyers are adapting and moving forward. Inventory remains low at just 1.7 months, giving sellers continued leverage.

The average home price has climbed to $946,653, reflecting sustained demand even as days on market tick up to 54 days. Nearly 40% of homes are still selling within the first 30 days, meaning competition is present, especially in desirable price points.

With 1,149 new listings hitting the market but only 721 homes going pending, inventory is slightly building, offering buyers a few more choices—but not enough to shift the market out of seller-friendly territory.

Let’s break it all down.

Sales Activity Intensity™

Current Effect:

Seattle’s Sales Activity Intensity™ sits at 39.3%, slightly lower than January’s 44.2%, but still within the “strong” market range. Homes are taking longer to sell at 54 days on average, but demand remains steady, with buyers adjusting to market conditions.

On average, homes are seeing 17 showings before going pending, meaning buyers are being more selective. 6.9 showings per active listing also signal that there’s competition, but homes may need to be priced strategically to move quickly.

What This Means:

📌 For Buyers: The market is competitive, but homes are taking longer to sell. Be patient, but be ready to act when you find the right home. Having your financing in order and working with an agent who understands market shifts will be key.

📌 For Sellers: Homes are still selling well, but pricing matters. Overpricing may lead to sitting on the market longer. Staging and small improvements can make a big difference in attracting buyers quickly.

Monthly Inventory Levels

Current Effect:

Seattle’s housing inventory has increased slightly to 1.7 months, up from 1.4 months last fall, but still indicating a shortage of homes. 1,577 homes were available this month, offering slightly more breathing room for buyers, but supply remains well below balanced-market levels (4-5 months).

What This Means:

📌 For Buyers: Inventory is slowly improving, giving you a little more time to weigh your options. But desirable homes are still selling fast, so be prepared to move quickly on well-priced properties.

📌 For Sellers: Even with a slight inventory increase, low supply means leverage is still on your side. If your home is priced competitively and in good condition, expect steady interest and a strong sale price.

Interest Rates

Current Effect:

The average mortgage rate for February sits at 7.05%, slightly up from January’s 6.99%. This keeps rates in the "uncomfortable" zone, but buyers are adjusting. Rates have remained relatively stable, providing some predictability compared to the volatility of the past two years.

What This Means:

📌 For Buyers: Affordability is still a challenge, but rates appear to be stabilizing. Locking in sooner rather than later can be smart, as the Fed isn’t expected to cut rates until later in 2025. Consider rate buy-downs, ARMs, or negotiating seller concessions to help ease costs.

📌 For Sellers: Higher rates mean some buyers are more price-sensitive. Offering rate buy-downs or closing cost assistance can make your home more attractive, especially in price points under $1M.

Overall Market Trends

Seattle’s housing market remains competitive but slightly less intense than last month. Low inventory continues to support home prices, but buyers are taking their time with longer days on market and more showings per sale.

Despite interest rates holding at 7.05%, buyers are still purchasing—just more selectively. With spring around the corner, we expect sales activity to increase as more buyers enter the market.

Key Takeaways

For Sellers:

✔ Price Strategically: Homes are still selling well, but overpriced homes are sitting longer. Work with an agent to set the right price.
✔ Stage & Market Effectively: Buyers are more selective, so staging and strong listing photos can make a big difference.
✔ Consider Incentives: With rates still high, rate buy-downs or closing cost contributions can attract more buyers.

For Buyers:

✔ Get Pre-Approved: With demand steady, a pre-approval letter can give you an edge in competitive situations.
✔ Negotiate Creatively: Seller concessions and lender incentives can help with affordability.
✔ Be Patient, But Ready: Homes are taking a little longer to sell, so you may have more room to negotiate—but don’t wait too long on well-priced homes.

Residential Resale, Condos & New Construction

Resale Residential Homes:

🔹 Average home price: $946,653
🔹 Homes selling at 98.6% of list price—sellers still have solid negotiating power.
🔹 54 days on market, meaning homes are sitting longer compared to last fall.

Condominiums:

🔹 Condos continue to be an affordable entry point, especially for first-time buyers.
🔹 HOA fees remain a key factor—buyers should budget carefully.

New Construction:

🔹 Builder incentives (rate buy-downs & upgrades) are attracting buyers.
🔹 Energy-efficient and modern design homes remain in high demand.

The Fed’s Influence

The Federal Reserve left interest rates unchanged in their most recent meeting, signaling that they don’t expect cuts in the near term. While future rate drops are possible later in 2025, buyers should plan for current rates to remain steady for now.

Seasonality

February is typically a transition month as we move into the busier spring market. Buyers who get ahead of the rush may find slightly less competition now than they will in April or May.

For sellers, listing now means less competition—but as more homes hit the market in spring, standing out will become more important.

Strategic Insights for Buyers and Sellers

For Sellers:

✔ Stage & Price Competitively – Buyers are more selective, so presentation matters.
✔ List Now to Capture Demand – Don’t wait for spring’s increase in competition.

For Buyers:

✔ Get Pre-Approved – Rates are not expected to drop soon, so locking in now could be smart.
✔ Negotiate Seller Concessions – Many sellers are open to rate buy-downs or closing cost help.

The Rent vs. Buy Conversation

Seattle rents remain high, averaging $3,825 for a 3-bedroom home—comparable to a mortgage on a $700K home with today’s rates. For buyers planning to stay put, owning still provides long-term stability and equity growth.