- Key Insights 2025
- Forecast After January 1, 2025
- 2025 National Sales Forecast
- Percentage of Listings Under Contract First 30 Days
- Key Factors for Today’s Housing Market
- 6 Phases of the Yearly Housing Cycle
- Median Home Price in Seattle
- Sales Growth:
- What This Means for Sellers
- Local Cities Housing Updates
- King County Residential Market Report – December 2024
Key Insights 2025
Increased Listings:
Here is your Seattle housing market update. Starting in 2024, the number of new resale listings in King County began rising compared to the previous year. From the years prior we can see in 2021 supply of homes were only in the 600-700 homes for sale. This indicates growing seller activity as the market stabilizes after the adjustment years of 2022–2024.
Mortgage Rates:
Predicted to stabilize around the 6% range by the end of the year, these rates remain a key factor influencing buyer activity and affordability.
Seasonal Trends:
The Spring Market (March–April) is expected to be the busiest period for new listings, followed by a slight dip in activity during the summer months (July–August).
Forecast After January 1, 2025
Overall Market: Frenzy/Extreme Frenzy Sales Activity Intensity so 65%.
Luxury Market: Surge/Frenzy Sales Activity Intensity™ close to job centers.
2025 National Sales Forecast
Dr. Yun forecasts that home mortgage interest rates will be in the 6% range with sales activity increasing. 10% per year for the next two years. At that time, existing home transactions will be back to historical normal levels.
Percentage of Listings Under Contract First 30 Days
Key Factors for Today’s Housing Market
- Job Growth: Close to job centers
- Home Mortgage Interest Rates: Forecasted to be in the 6% range in 2025
- Tight Housing Supply: Close to job centers
- Energy Costs: Anticipated to lower
- Luxury Housing Market: U.S. economy, job growth, and wealth effects drive the luxury market
- Lifestyle/Destination Communities: As the major metro areas heat up on the west coast, transactions spread throughout the Northwest
6 Phases of the Yearly Housing Cycle
Represents Number of New Resale Listings by Month | Typical yearly pattern of new resale listings
Housing Market Cycles
January–February: New Year Kickoff
- Low point of unsold inventory.
- Buyers return to the market in larger numbers after the holidays.
- Low number of new resale listings.
- Sales Activity Intensity™ increases two levels.
March–April: Spring Market
- As more resale listings come on the market, intensity lowers by one level.
May–June: Pre-Summer Market
- Highest number of new resale listings and homes going under contract.
July–August: Summer Market
- Intensity lowers another level, with more new resale listings and unsold inventory.
September–October: Fall Market
- High point of unsold inventory.
- Best selection of new resale listings until the following March.
November–December: Winter Market
- Winter cleanup, with few new resale listings.
Median Home Price in Seattle
- December 2024: $870,000.Year-over-year
- Up 5.5% (from $825,000 in December 2023)
Sales Growth:
The number of sold listings in December increased by 25% year-over-year, indicating a higher demand compared to 2023.
What This Means for Sellers
- Strong Demand Continues: With a 25% increase in sales year-over-year and a high absorption rate, sellers are likely to benefit from multiple offers.
- Seasonal Trends to Watch: As the market moves toward spring, sellers should prepare now to capitalize on increased buyer activity during the peak season.
For Buyers: Start your home search now to leverage the slightly lower seasonal competition. Be prepared for competitive offers as market activity rises in spring.
For Sellers: Use the early part of 2025 to prepare your home for sale. Strong demand and low inventory will work in your favor to achieve a premium price.
If you need to know how to sell your house for top dollar this spring learn more How to Sell My House for Top Dollar: Spring 2025 Home Selling Guide
Local Cities Housing Updates
King County Residential Market Report – December 2024
Overview
The residential real estate market in King County showed varied trends in December 2024 compared to December 2023. Below is a detailed breakdown of key metrics:
- Total Active Listings: 1,476 (up 21.28% from 1,217 in December 2023)
- Pending Sales: 966 (up 7.10% from 902 in December 2023)
- Closed Sales: 1,151 (up 13.18% from 1,017 in December 2023)
- Median Price: $875,000 (up 2.95% from $849,950 in December 2023)
- Months of Inventory: 1.28 (indicating a seller’s market)
Highlights by Area
- Jovita / West Hill (Area 100):
- Median Price: $630,000 (-1.95%)
- Pending Sales: +41.18%
- Closed Sales: -36.67%
- Dash Point / Federal Way (Area 110):
- Median Price: $650,000 (+0.31%)
- Pending Sales: +51.85%
- Closed Sales: +11.43%
- Des Moines / Redondo (Area 120):
- Median Price: $625,000 (+0.16%)
- Pending Sales: +31.58%
- Closed Sales: +60.00%
- Kent (Area 330):
- Median Price: $703,000 (+6.52%)
- Pending Sales: +5.88%
- Closed Sales: +23.73%
- Renton / Benson Hill (Area 340):
- Median Price: $785,000 (+7.68%)
- Pending Sales: +96.00%
- Closed Sales: +25.71%
- Skyway (Area 360):
- Median Price: $750,000 (+46.34%)
- Pending Sales: +23.08%
- Closed Sales: +500.00%
- Southeast Seattle (Area 380):
- Median Price: $875,000 (+22.81%)
- Pending Sales: +8.00%
- Closed Sales: +6.06%
- Redmond / Carnation (Area 550):
- Median Price: $1,422,545 (+12.99%)
- Pending Sales: -9.09%
- Closed Sales: -22.58%
Trends and Insights
- Demand Remains Strong: Many areas experienced a significant increase in pending and closed sales. For instance, Skyway (Area 360) saw closed sales skyrocket by 500%, despite a low starting base.
- Median Price Growth: While the overall price appreciation was moderate, areas such as Skyway (+46.34%) and Southeast Seattle (+22.81%) saw exceptional growth.
- Inventory Increasing: Active listings rose in most areas, with Eastside and Seattle markets remaining particularly competitive.
- Luxury Market Trends: High-end markets like Redmond/Carnation and E of Lake Sammamish saw double-digit price increases, driven by strong buyer interest.
To stay even more up to date with our housing market check our Weekly Seattle Housing Market Update
