Seattle’s March Housing Market in 3-Minutes
by Brian Huie, March 13, 2025
How’s the market?
Source: NWMLS
Seattle’s real estate market is thawing, and the shift is impossible to ignore. Lower mortgage rates, rising inventory, and a wave of eager buyers are breathing life back into a market that spent most of late 2024 in hibernation.
After slogging through the slowest year in real estate sales since 1995, thanks to stubbornly high interest rates, election-year jitters, and an overall vibe of consumer hesitation, we’re now on track for a strong spring rebound. Compared to historical trends, buyer activity is picking up, and home values are creeping north as competition intensifies.
But here’s where it gets interesting: inventory is stacking up. Some markets and submarkets are seeing 1.5 to 2 times the listings of previous years, giving buyers more options and sellers more incentive to price strategically. Even Seattle’s downtown condo scene—once a pandemic ghost town—is seeing inventory levels bounce back to pre-pandemic norms.
Translation? The power dynamic is shifting. More listings mean buyers get breathing room, but rising demand and price appreciation suggest that Seattle real estate isn’t just waking up—it’s stretching, caffeinating, and getting ready to run.
How This Affects Seattle-Area Homebuyers
More home options as housing inventory continues to rise.
Lower monthly mortgage costs, assuming interest rates stay below 7%.
Increased buyer enthusiasm, leading to a more active real estate market.
How This Affects Seattle-Area Home Sellers
More confident buyers, reducing uncertainty in real estate transactions.
Stronger listing activity, driven by improved market conditions.
Higher reliability in offers, as buyer demand stabilizes.
Mortgage Rates: 6.8% (avg 30-yr conv)
Mortgage rates dropped to a nearly two-year low of 6.11% in early September before returning to fluctuations around 7%. While February's CPI data was stable and 10-year bond yields declined, rising inflation expectations may lead to increasing yields in the near future. https://www.mortgagenewsdaily.com/mortgage-rates/30-year-fixed
What Current Mortgage Rates Mean for Seattle-Area Homebuyers
Experienced homebuyers are more comfortable with today’s mortgage rates after years of searching.
Newer homebuyers see 7% mortgage rates as the norm—just like I did when purchasing my first home in the early 2000s at over 7%.
A 0.25% mortgage rate decrease can:
Increase buyer competition
Lead to surges in pre-approval applications
A 0.25% interest rate increase can:
Reduce buyer competition
Make timing in the real estate market even more crucial
What Current Mortgage Rates Mean for Seattle-Area Home Sellers
Steady mortgage rates have shifted Seattle homebuyers' focus back to home shopping instead of hesitating over rising interest rates.
Homes that don’t sell within the first couple of weeks may need seller concessions, such as:
Covering closing costs
Offering rate buydowns to attract buyers
Pricing, home preparation, and staging are now more critical than ever to:
Capture serious buyers quickly
Maximize your home’s value
Housing Inventory
NWMLS inventory has increased by 36.8% since February 2024, rising from 1.79 months to 2.45 months. However, inventory levels vary significantly across different markets and submarkets—for example:
Redmond’s single-family home inventory is at 0.8 months.
Seattle’s Eastlake condo inventory is at 3.2 months.
(Brian’s active buyers and sellers receive weekly updates on target submarkets.)
What This Means for Seattle-Area Homebuyers
More inventory = more options, even for the pickiest buyers.
However, highly desirable homes—those that are well-prepared, priced correctly, and presented well—will still attract intense competition.
Some buyers may overpay for these standout homes, while less-prepared listings sit on the market.
What This Means for Seattle-Area Home Sellers
More competition means sellers need to differentiate their listings to attract serious buyers.
Buyers tend to flock to what I call “gems of the week”—homes that outshine others due to exceptional preparation, pricing, and presentation.
To maximize sale price, sellers should ensure their home is market-ready on day one.
Buyers (pending data for King, Snohomish, and Pierce Counties)
Seattle’s housing market isn’t waiting for spring to heat up—it’s already on the move. In February, the median unpublished pending price climbed to $780,000, up from $749,997 in January, a clear sign that buyers are getting bolder with their bids. The average pending price-to-list price ratio also nudged up from 100% to 101%, meaning more homes are selling above asking.
But the real drama? Multiple offers jumped from 35% in January to 38% in February, and escalation clauses—the fine print that lets buyers automatically up their offers in bidding wars—ticked up from 14% to 16%. This isn’t just casual interest; buyers are coming in ready to battle.
On the flip side, the number of buyers insisting on an inspection addendum dropped from 49% to 44%, suggesting that some are skipping due diligence in favor of sealing the deal. Meanwhile, finance addendums held steady at 70%, proving that while cash buyers make waves, the majority are still bringing mortgages to the table.
Bottom line? Prices are climbing, competition is tightening, and buyers are making riskier plays to land a home. If this is a preview of the spring market, buckle up—it’s going to be a fast ride.
(Brian’s active buyers and sellers receive weekly updates on target submarkets with real-time pending data.)
What This Means for Seattle-Area Homebuyers
Be prepared to compete—a full pre-approval is essential.
Most buyers will gravitate toward the same standout listings, so act fast:
Tour homes early in the week before competition heats up.
Check out homes with poor photography or weak marketing—hidden gems can still be found, especially this early in the year.
What This Means for Seattle-Area Home Sellers
If you’re waiting for peak buyer activity, start preparing now
The ideal time to list depends on your submarket:
Some areas may hit a perfect balance of serious buyers and online viewings in April.
Others may see the best conditions in June or July.
Headlines
Washington is one of the least federally dependent states in the US
https://www.kitsapsun.com/story/news/local/washington/2025/03/12/washington-is-one-of-the-least-federally-dependent-states-in-the-us/82291106007/Want a View of the Housing Affordability Crisis? These Numbers Show the Trend
https://www.investopedia.com/want-a-view-of-the-housing-affordability-crisis-these-numbers-show-the-trend-116884515 housing market predictions for 2025, according to economistsHome Values
https://www.cnbc.com/2024/12/08/heres-what-to-watch-out-for-in-the-2025-housing-market.html