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:
- 57.7% (SURGE)
- INTEREST RATE:
- 6.71% (MANAGEABLE)
- INVENTORY LEVEL:
- 1.6 Months (SHORTAGE)
THE BIG DEAL
Seattle’s housing market is gaining steam as mortgage applications and credit pulls rise year over year, proving buyers are back in action. A combination of easing rates, a fresh crop of listings, and strong buyer demand help sales to remain strong, inventory tightening, and early-year momentum. It points to a competitive spring. For those ready to act — now’s the time.Seattle Housing Market Report: March 2025 – Buyer Confidence Surges as Inventory Holds Tight
Seattle’s housing market is picking up momentum heading into March 2025, with buyer confidence climbing thanks to slightly lower mortgage rates and a modest uptick in new listings. The combination of pent-up demand, stabilizing rates, and seasonal energy is setting the stage for a competitive spring market.
The average home price in Seattle has jumped to $965,331, as strong demand and limited inventory keep sellers in the driver’s seat. Homes are selling faster, averaging just 38 days on market, and 54% of listings are going pending within the first 30 days — a clear sign that buyers are back and ready to move.
Inventory remains tight at 1.8 months, which isn’t quite a full-on crisis, but it’s still firmly in seller’s market territory. With interest rates hovering around 6.74%, buyers are recalculating their budgets but staying in the game.
The bottom line? Buyers are adjusting, sellers are listing, and Seattle’s spring market is shaping up to be one of the busiest in recent years.
Let’s break it all down.
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 Intensity™
Current Effect:
Seattle’s Sales Activity Intensity™ for March hit 54%, jumping significantly from February’s 39.3%, officially landing us in the “Surge” zone. That means more than half of homes are going under contract within the first 30 days. Buyers are back, and they’re moving faster than they did over the winter.
- Homes are selling in 38 days on average, a big improvement from 54 days last month.
- Homes are seeing 6.8 showings per listing, with 17 showings to pending, signaling that buyers are more decisive now that they’re adjusting to rates and competition is heating up.
What This Means:
📌 For Buyers: Spring competition is here. If you see a home you like, don’t assume you have time to sleep on it. Get pre-approved, work with an agent who understands fast-moving offers, and consider making your terms stand out (inspection waivers, flexible close dates).
📌 For Sellers: Buyers are moving faster, but they’re still price-sensitive. Price it right out of the gate, and your home could attract multiple offers. Staging and professional photos are essential to catch those early online browsers.
Monthly Inventory Levels
Current Effect:
Seattle’s inventory sits at 1.8 months, up just a hair from February’s 1.7 months, but still deep in shortage territory. While 1,116 new listings hit the market, demand is scooping up homes quickly, keeping inventory tight.
- 1,709 homes were for sale during the month
- 805 homes went pending
- 667 homes sold
What This Means:
📌 For Buyers: More listings are trickling in, but competition is outpacing supply. Don’t expect to lowball — well-priced homes are still getting offers above asking, especially in hot neighborhoods.
📌 For Sellers: Leverage is still on your side, especially if your home is move-in ready. However, buyers are savvy, so overpricing could still backfire. If you’re planning to sell, listing now gives you the advantage of low competition before the flood of spring listings hits in April/May.
Interest Rates
Current Effect:
The average mortgage rate for March 2025 sits at 6.74%, a slight improvement from February’s 7.05%. While still in the “good-but-not-great” range, buyers are adjusting their budgets and re-entering the market with a little more optimism.
What This Means:
📌 For Buyers: While it’s not the sub-5% dream, 6.74% feels a lot better than 7%+, and many lenders are offering rate buy-down programs to sweeten the deal. Locking in now, before demand fully explodes, could save you money in both rate and purchase price.
📌 For Sellers: Buyers are still rate-conscious, so offering concessions like rate buy-downs or closing cost help could tip the scales in your favor, especially in the mid-range price points where affordability is tightest.
Overall Market Trends
Seattle’s housing market is gearing up for a competitive spring, with buyer confidence on the rise and inventory still too low to fully satisfy demand. Prices are inching up, homes are selling faster, and buyers who sat out 2024’s higher rates are ready to pounce.
Even though rates are still elevated compared to the golden days of 3%, buyers are realizing that waiting could mean higher prices down the road, so they’re adjusting their expectations and jumping back in.
Key Takeaways
For Sellers:
✔ Price it right — overpricing = longer days on market, even in a strong market.
✔ Stage & shine — buyers expect homes to look HGTV-ready, even in competitive areas.
✔ Consider incentives — a rate buy-down or closing cost assistance could attract more offers.
For Buyers:
✔ Get pre-approved now — with more buyers entering the market, pre-approval is a must-have ticket to the show.
✔ Be ready to act fast — homes in popular areas are seeing strong offers within days.
✔ Negotiate creatively — seller concessions, inspection flexibility, and smart terms can help your offer stand out.
Residential Resale, Condos & New Construction
Residential Resale
🔹 Average home price: $965,331
🔹 Average days on market: 38
🔹 Sold-to-list price ratio: 101.9% — sellers are still getting offers over asking in many cases.
🔹 Total closed sales volume: $645 million+
Condos
🔹 Condos remain a popular option for first-time buyers who are priced out of the single-family market.
🔹 Average price per square foot: $595 — still a more affordable entry point than standalone homes.
🔹 HOA fees continue to be a key consideration for condo buyers — budgeting for those costs is crucial.
New Construction
🔹 Average sold price: $941,165
🔹 New construction inventory: 3.4 months — more balanced than resale, giving buyers a bit more breathing room.
🔹 Days on market: 51 — longer than resale, giving buyers time to shop, but incentives are often available.
🔹 Sold-to-list price ratio: 99.4% — builders are pricing aggressively, but not quite at the "over-asking" frenzy level.
🔹 Average price per square foot: $657
🔹 Total closed new construction sales volume: $150.6 million
🔹 15 showings to pending — slightly lower than resale, but still competitive.
What’s Trending:
📌 Builder Incentives: Many builders are offering rate buy-downs, appliance upgrades, and closing cost credits to sweeten the deal, especially for homes that have been on the market a while.
📌 Modern & Efficient: New homes with energy-efficient features, smart tech, and contemporary design continue to attract buyers, even at a premium.
📌 Flexible Financing: Builders’ in-house lenders are increasingly offering creative financing options to ease rate pain.
The Rent vs Buy Conversation
Seattle rents remain high, with the average 3-bedroom rental at $3,825/month — that’s equivalent to the mortgage on a $700,000 home at today’s rates.
For buyers planning to stay put for 5+ years, buying still makes financial sense, especially given expected price appreciation over the next several years. Renting may feel flexible, but locking in a fixed mortgage payment and building equity usually wins the long game.
The Fed’s Influence
The Fed’s holding steady, with no rate cuts expected until late 2025 at the earliest. Inflation’s still sticky, so the “higher for longer” narrative isn’t going away soon.
What This Means:
📌 Don’t wait around for sub-5% rates — the market is adjusting to 6-7% as the new normal.
📌 Buyers waiting for rates to drop risk paying more for the home itself if prices rise faster than rates fall.
Seasonality
📌 Spring Surge Incoming — with buyers re-entering the market, expect increased competition in April and May.
📌 Early Birds Win — buyers and sellers who act now, before peak listing season, may have the upper hand.
It’s Spring, The Market is Moving!In March, the market began anticipating the full momentum of spring’s increased Sales Activity Intensity™, with both sellers and buyers actively preparing. In the past 31 days, we have seen a trend of more listings and more homes going under contract compared to this time last year. Buyers are experiencing better availability and a decrease in interest rates. J Lennox Scott
LENNOX SCOTT
CEO of John L. Scott Real Estate
Seattle Real Estate GRAPHS AND Data
Seattle’s housing inventory now sits at 1.8 months, up slightly from February’s 1.7 months, but still deep in seller’s market territory. If no additional homes were listed, Seattle would run out of homes to sell in about 54 days — still extremely tight for a major metro market.
In March, we saw:
- 1,116 new listings hit the market
- 667 homes sold
- 805 homes went pending
This combination of new listings, rising sales, and increasing pending activity reflects growing buyer confidence fueled by slightly lower rates and early spring motivation. Competition remains strongest in the $500K–$1.25M range, where 54% of homes are selling within the first 30 days.
Luxury homes priced at $2M+ are moving at a slower but steady pace, with buyers focusing on top school districts, view properties, and unique amenities like ADUs and energy efficiency features. Even at these price points, the right homes are seeing solid interest.
Why Does Low Inventory Matter?
📉 Inventory below 3-4 months is considered “low,” and Seattle’s 1.8-month supply firmly holds us in a seller’s market.
📈 Low supply, combined with strong buyer demand, keeps upward pressure on prices — even with mortgage rates hovering near 6.74%.
Key Takeaways:
📌 For Buyers:
- Speed matters. Even though the average days on market is 38, the most desirable homes — those priced between $500K and $1.25M, especially in sought-after neighborhoods — are getting multiple offers and moving fast.
- Being pre-approved, financially ready, and able to offer flexible terms (like quick closing or inspection waivers) will give you the best shot.
📌 For Sellers:
- Low competition = pricing power.
- If your home is move-in ready and priced appropriately, you can expect strong interest, multiple showings, and possibly competing offers — especially for homes in prime locations with good schools, walkability, or desirable amenities.
- Homes priced over $2M still face a slightly longer market time, but well-marketed, well-presented properties are still moving within reasonable timeframes.
MARKET INTENSITY
In March 2025, 54% of homes in Seattle went pending within the first 30 days, a significant jump from February’s 39.3%, officially shifting the city into “Surge” intensity territory. This acceleration reflects growing buyer confidence as slightly lower mortgage rates, increased inventory, and early spring motivation bring more buyers off the sidelines.
Despite the improvement in inventory, buyers are moving quickly—especially for homes priced between $500K and $1.25M, where competition is strongest.
In the luxury market (homes priced $1.5M-$2M), roughly 51% of listings went pending within 30 days, proving that demand for high-end homes remains resilient, particularly in neighborhoods with top schools, water views, and modern amenities.
The market’s message is clear: Well-priced, move-in ready homes—especially in desirable price points and locations—are still commanding attention and moving fast. Meanwhile, overpriced homes or those needing significant updates are seeing longer days on market and price reductions.
Key Takeaways:
📌 For Buyers:
- Preparation is everything. Half of the homes in Seattle are going pending in the first month, and competition is back on the rise.
- Work closely with your **broker to identify upcoming listings, get pre-approved before you start shopping, and be ready to submit a strong, clean offer when you find “the one.”
- Desirable properties won’t wait for you.
📌 For Sellers:
- You still hold leverage, but that leverage depends heavily on pricing strategy and presentation.
- Well-prepped homes with modern updates, curb appeal, and accurate pricing are seeing strong offers—often above asking.
- Luxury sellers are also seeing serious buyers in the pool, especially for homes offering premium lifestyle features (smart home tech, indoor/outdoor living, EV charging, etc.).
- Overpricing is a risk — even in a strong market, buyers know their numbers and are pushing back on inflated prices.
PRICE
The average sale price for homes in Seattle in March 2025 is now $965,331, up from $946,653 in February — evidence that strong buyer demand and persistently low inventory continue to support upward price pressure, even in the face of higher mortgage rates.
By Property Type:
- Single-Family Residences: $1,090,063
- Condos: $704,485
5-Year Appreciation:
Compared to March 2020, when the average Seattle home price was $747,137, this represents a 29.2% increase in overall home values — proof that despite economic ups and downs, Seattle’s housing market remains one of the most reliable long-term investments.
- Single-Family Homes: Up 35.2% over the last 5 years (from $806,109 to $1,090,063)
- Condos: Up 25.8% over the same period (from $560,204 to $704,485)
Pricing Dynamics:
- The list-to-sale price ratio now sits at 101.9%, meaning homes are consistently selling slightly above list price, particularly in competitive price bands between $500K and $1.25M.
- This demonstrates that correctly priced homes are still attracting strong offers, even as buyers face tighter budgets due to higher borrowing costs.
Key Takeaways:
📌 For Sellers:
- Seattle’s long-term price appreciation continues to make homeownership an exceptional wealth-building tool, with nearly 30% price growth in just five years.
- Well-priced, move-in ready homes are still selling quickly, often above asking, particularly in sought-after neighborhoods with strong schools, transit access, and lifestyle amenities.
- Even luxury properties can command strong interest if they’re positioned correctly and offer high-demand features like energy efficiency, smart-home tech, and outdoor living space.
📌 For Buyers:
- Seattle’s historical appreciation trend is hard to ignore — waiting to buy has consistently meant paying more down the road.
- Even in today’s higher rate environment, buying now locks in your price and lets you benefit from future appreciation.
- Whether you’re buying your first home or moving up, the numbers are clear — time in the market beats timing the market in Seattle real estate.
TIMING
According to the John L. Scott 6 Phases of the Yearly Housing Cycle, we are transitioning out of the New Year Kickoff Phase and heading straight into the Spring Surge Phase — the busiest time of year for Seattle real estate. This shift typically brings:
- A steady influx of new listings as sellers aim to hit the sweet spot of spring demand.
- Increasing buyer traffic at open houses as those who sat out the winter re-enter the market, motivated by better weather and fresh inventory.
- Escalating competition, especially in popular neighborhoods and price points where demand significantly outpaces supply.
We’re already seeing this play out in March’s numbers, with more homes going pending faster, and inventory levels still well below balanced market conditions. Buyers are ready to act, and early-spring sellers are reaping the benefits of low competition before the flood of new listings hits in April and May.
What This Means:
📌 For Sellers:
- Now is a prime window to list. Inventory is still low, and serious buyers are actively looking, creating favorable conditions for well-prepared sellers.
- Listing in March or early April could mean less competition and stronger offers, especially for homes in move-in ready condition.
📌 For Buyers:
- More listings are coming, but so is more competition. Acting now—while **other buyers are still getting pre-approved or waiting for the full spring rush—could give you an edge.
- Homes in desirable areas under $1.25M are already seeing multiple offers, and that trend will only intensify as we move deeper into the Spring Surge Phase.
Seattle Market Stats
STATS PROVIDED BY: INFOSPARK
RESIDENTAL RESALE
- $965,331 was the average sold price for listings in Seattle.
- 1,116 new listings went on the market this month.
- 1,709 homes were for sale during the month.
- 805 homes went pending in Seattle.
- 667 homes sold this month
- 1.8 months of inventory available in Seattle
- 38 was the average days on market for a home to sell in Seattle
- 101.9% was the average listing price vs. sales price percentage
- $595 was the average price per square foot in Seattle
- $645,451,172 was the total closed sales volume for Seattle
- 6.74% was the interest rate
- 54% of homes sold in the first 30 days in Seattle
- 17 Average showings to Pending
- 6.8 Showings per Listing
NEW CONSTRUCTION
- $941,165 was the average sold price for new construction in Seattle.
- 211 new construction listings went on the market this month.
- 434 new construction homes were for sale during the month.
- 197 new construction homes went pending in Seattle.
- 160 new construction homes sold this month
- 3.4 months of new construction inventory available in Seattle
- 51 was the average days on market for a new construction to sell in Seattle
- 199.4% was the average listing price vs. sales price percentage
- $657 was the average price per square foot in Seattle
- $150,586,455 was the total closed sales volume for Seattle
- 6.74% was the interest rate
- 15 Average showings to Pending
- 4.2 Showings per Listing
SEATTLE HOUSING MARKET Summary
As we wrap up our analysis of the Seattle housing market for March 2025, it’s clear that momentum is building fast as we transition from the New Year Kickoff Phase into the Spring Surge Phase. Buyer confidence is on the rise, inventory is still tight, and competition is heating up across the board.
Homes are now selling in an average of 38 days, a sharp drop from February’s 54 days, highlighting faster market velocity. The list-to-sales price ratio sits at 101.9%, meaning well-priced homes are not only selling — they’re often selling above asking.
Sales Activity Intensity™ surged to 54%, a big jump from February’s 39.3%, showing that more than half of all homes are going pending within the first 30 days. Buyers are clearly moving with urgency, especially in the $500K to $1.25M range, where competition is fiercest.
Inventory remains tight at 1.8 months, even with 1,116 new listings hitting the market. This still leaves Seattle firmly in low-inventory, seller-favored territory, where supply is far from balanced — especially in popular neighborhoods. Buyers are competing for limited inventory, particularly for move-in-ready homes priced under $1.25M.
Interest rates currently sit at 6.74%, a modest improvement from February’s 7.05%. While rates are still in the “uncomfortable” zone, buyers are showing they’re willing to adjust their expectations and budgets to secure homes before prices climb further.
Looking Ahead
📌 For Sellers:
- The combination of low inventory and rising buyer activity continues to work in your favor, but pricing and presentation matter more than ever.
- Homes that are priced right, staged well, and marketed effectively are getting strong attention and multiple offers — even in luxury price ranges, where buyers are being more selective.
📌 For Buyers:
- Be ready to act fast, especially in price points under $1.25M, where demand is at its highest.
- Pre-approval is non-negotiable, and working with an experienced broker can help you craft creative offers that stand out — whether that’s rate buy-down requests, flexible closing dates, or inspection flexibility.
The Big Picture
As we head into the heart of Seattle’s spring market, expect more listings, more buyers, and more competition. Acting now — before inventory peaks and buyer traffic hits its highest — can give both buyers and sellers an edge.
Whether you’re looking to buy or sell, understanding these market dynamics and partnering with the right expert can make all the difference this spring.
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