January Market Update: What to Expect in 2025

The new year brings fresh insights into the housing market. Whether you’re planning to buy, sell, or invest, understanding these trends can help you make informed decisions. Here’s a deep dive into the latest data and what it means for you.

Key Market Highlights from 2024:

1. Home Prices Continue to Rise:
   
   

• King County: Median home price up 2.88% to $802,500.

• Snohomish County: Median home price up 10.52% to $746,000.

• 10-year average annual appreciation: 7.33% (King) and 9.20% (Snohomish).
  
  Over the past decade, with the effect of compounding, actual home prices in King County have more than doubled, and Snohomish County has seen a staggering 138.91% increase.
  
  
  
  

2. Inventory Levels Remain Tight:
   
   

• King County: 1.0 months (up 6 days year-over-year).

• Snohomish County: 1.3 months (up 6 days year-over-year).
  
  While inventory remains low, homes that aren’t well-prepared or priced correctly are taking longer to sell.
  
  

3. Days on Market (DOM) Increasing Slightly:
   
   

• King County: 34 days on average (+3 days YoY).

• Snohomish County: 40 days on average (+5 days YoY).
  
  Balanced markets mean some homes sell quickly, while others require price adjustments or concessions.
  
  

4. List-to-Sell Price Ratio:
   
   

• King County: 97.80% (+0.30% YoY).

• Snohomish County: 97.40% (+0.60% YoY).
  
  This reflects a return to a more stable market compared to the frenzy of 2020-2022.
  
  

5. Mortgage Rates Normalize:
   
   

• Current rate: 6.85%, with fluctuations between 6-7% expected in 2025.

• Rates peaked at 7.22% in 2024 but are stabilizing at historic norms.

What Does This Mean for You?

• Buyers: Waiting for a market "crash" or significantly lower interest rates may not be the best strategy. Prices and rates are stabilizing, and opportunities abound for prepared buyers.
  
  

• Sellers: While the market favors well-prepared homes, realistic pricing and strong marketing strategies are key to securing a successful sale.
  
  

• Investors: Long-term appreciation trends and market stability make real estate a compelling option for building wealth in 2025.
  
  

Looking Ahead: The market’s stability and return to historic norms signal a healthy environment for real estate activity. Whether you’re buying your first home, upsizing, or adding to your investment portfolio, 2025 offers unique opportunities.

For a personalized consultation or to discuss your real estate goals, contact us today. Let’s make your plans a reality in 2025!

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