Published February 14, 2025
February Real Estate Market Update!
The 2025 market is off to a brisk start with a more than 40% increase in new listings compared to January last year and annual price increases of 3% to 6% across the region. Let’s dive into the specifics:
Median Home Price
Homeowners are benefiting from continued strong appreciation even in the more normalized mortgage rate environment with prices up $25,000 or 3.3% in King County to $765,000, and remarkably up in Snohomish County adding $45,000 or 6.4% with a current median home value of $742,610.
Inventory
The balance of buyers & sellers remained consistent even with a large boost in new listings with 1.1 months inventory in King County and 1.6 months in Snohomish County.
Days on Market
Lingering listings from Q4 ‘24 added to the average time on market adding 7 days to both counties with 41 days in King and 47 days in Snohomish. Compared to last January, time on market is only up 3 & 4 days respectively… so not a huge shift at all when factoring in the season.
List to Sell Ratio
Sellers are experiencing a good, but not ‘bonkers’ market with selling ratios holding steady around 98% of original price. King county saw 98.3% which was up 0.3% from December and 0.5% from last year. Snohomish rose 0.2% from December to 97.6% however this was 0.1% lower than January 2024.
Competitive Market Stats*
However, these many of these buyers are still facing a competitive market with:
Multiple Offers & Escalations
38% of pending listings in January received multiple offers… and 45% competitive listings received escalation addenda.
Waived Contingencies
59% of Buyers waived their inspection contingencies at offer either through accepting a seller inspection, performing their own pre-inspection or not inspecting the property. 33% of Buyers waived their financing & appraisal contingencies with their successful offer.
Interest Rates
Buyers are seeing steady rates which are trending a bit higher 
based on more concerns with inflation driving the Fed and bond
markets toward higher underlying lending rates. Rates were flat
in January starting the year at 6.91% and finishing the month at
6.95%. These are lower than we saw in the first quarter of 2024,
though higher than we saw in Q3.
When we look at the longer term trends over 5 years we can see rates trends are flattening after 3 years of steady increases.
Conclusion
The market is off to a great start in 2025 with more inventory for buyers to choose from and a still favorable market for sellers who thoughtfully prepare and price their properties. Most importantly, we don’t see a reasonable cause to believe we’ll see a decrease in home values in the foreseeable future… nor a major downward shift in interest rates… So, if you need or want to buy a first home or your next home, waiting is likely not a favorable strategy.
* Pending Sales Trend Date: We now are publishing the latest data on pending listing trends including price, price ratio and various competitive terms to help guide our buyers and sellers on best strategies!
