September 2025 Market Report: Buyers Gain Leverage, Sellers Face New Realities

The Puget Sound housing market is easing into fall with numbers that tell a story of shifting leverage. Prices are holding relatively steady, but homes are sitting longer, inventory has climbed, and mortgage rates continue to shape both affordability and buyer psychology.

Let’s break down the latest data for King and Snohomish Counties, then talk about what it means if you’re thinking of buying or selling this season.

 Quick Market Snapshot

King County (September 2025)

• Median Price: $861,500 (down 0.5% year-over-year)

• Inventory: 3.2 months (up from 2.6 months last year)

• Days on Market: 35 (9 days longer than 2024)

• List-to-Sell Ratio: 97.1% (down 1.5%)

Snohomish County (September 2025)

• Median Price: $715,000 (down 5% year-over-year)

• Inventory: 2.6 months (up from 1.9 months last year)

• Days on Market: 34 (10 days longer than 2024)

• List-to-Sell Ratio: 96.8% (down 1.6%)

 Translation: Homes are still selling, but not at the same pace or with the same seller leverage we saw in past years. Buyers now have more time to decide, and more negotiating room.

 The Mortgage Rate Effect

It’s impossible to talk about today’s market without talking about mortgage rates. After a rollercoaster summer, rates have hovered in the mid-6% to low-7% range. That’s nearly double the rates buyers enjoyed just a few years ago, and it’s keeping monthly payments high.

For example:

• At 3% interest, a $700,000 home carried a monthly principal and interest payment of roughly $2,950.

• At 6.75%, the same loan is closer to $4,540 — nearly $1,600 more per month.

That affordability squeeze explains why buyers are more cautious, why homes are sitting longer, and why sellers are having to adjust expectations.

But here’s the wild card: if rates dip even half a percent, sidelined buyers could re-enter quickly, putting upward pressure on demand again.

 What This Means for Buyers

If you’re buying this fall, you have more breathing room than in recent years:

• More selection: Inventory is up in both King and Snohomish.

• More negotiating power: With list-to-sell ratios below 97%, sellers are accepting concessions — closing costs, inspection repairs, even price reductions.

• More time: Average days on market are in the mid-30s, giving buyers time to tour, compare, and negotiate without the frantic multiple-offer pressure of the pandemic years.

 Pro Tip: Focus on the monthly payment, not just the purchase price. If rates drop, you can refinance later — but the price you lock in today might look like a bargain if demand picks up again

 What This Means for Sellers

Homes are still moving, but pricing and presentation matter more than ever.

• Overpricing = Sitting on Market: Buyers have options, and they’ll skip overpriced listings.

• Correctly Priced Homes Still Sell: Homes that are priced strategically and presented well are selling within weeks.

• Negotiation is Back: Expect to cover closing costs, inspection items, or offer credits to keep deals moving.

 Pro Tip: A strong pricing strategy can mean the difference between selling in 3 weeks vs. 3 months. It’s not just about listing high — it’s about finding the sweet spot that attracts buyers and sparks competition.

 National vs. Local Picture

Nationally, price growth has slowed, but locally we’re seeing some sharper year-over-year differences:

• King County: Prices are nearly flat (-0.5%), showing resilience in the urban core.

• Snohomish County: Prices are down ~5%, suggesting affordability pressure is pushing buyers to negotiate harder in suburban markets.

This divergence is worth watching. Snohomish has long been the “value alternative” to King — but if affordability continues to bite, Snohomish may soften faster while King holds steadier.

 Looking Ahead

As we head into the fourth quarter, a few trends will determine where the market goes next:

1. Rates: Even a small decline could bring more buyers back.

2. Inventory: If supply builds faster than demand, buyers will gain more leverage.

3. Seasonality: Fall and winter are typically slower, but serious buyers and sellers are still making moves.

 Bottom line: Right now feels like a balancing point — a market where neither side holds all the power. Buyers have more leverage than last year, but sellers still benefit from relatively low overall inventory.

 Join the Conversation

We want to hear from you:

• Do you feel like this is leaning toward a buyer’s market?

• Or are sellers still holding the stronger position?

• What’s the biggest factor shaping your decision right now: price, rates, or timing?

Drop a comment below — your experiences help paint a clearer picture of what’s happening in our neighborhoods.

 Thinking About a Move?

Whether you’re buying, selling, or just curious, a personalized market strategy makes all the difference.

 Reach out to us for a custom breakdown of your neighborhood and price range. Let’s talk about how today’s numbers impact your plans. 206-489-4920 or Info@ReeceHomes.com.