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The latest Northwest MLS Market Snapshot reveals key trends shaping Washington’s real estate landscape in February 2025. Historically, February tends to be a slower month for real estate activity, but this year’s data provides valuable insights into the evolving market conditions. Buyers continue to face affordability concerns amid fluctuating interest rates, while limited inventory remains a challenge in many areas. Despite these hurdles, the market is seeing steady demand, with some regions experiencing competitive conditions and others showing signs of increased buyer negotiation power. Let’s take a closer look at what this means for buyers, sellers, and investors moving forward.

Mortgage Rates and Pricing Trends

Despite a slight decline in 30-year mortgage rates from 6.95% to 6.76%, affordability remains a concern as home prices continue to rise. The median price for residential homes and condominiums increased by 2.4%, reaching $630,000, up from $615,000 in January 2025.

Inventory and Sales Activity

While active listings surged by 39.4% year-over-year, the annual increase in closed sales was just 1.9%. This suggests more homeowners are listing their properties, but buyers are still hesitant due to affordability constraints.

At the current sales rate, inventory remains low at just 2.45 months’ supply, well below the 4-6 months needed for a balanced market.

Construction Costs and Tariffs

Looking ahead, homebuilders are preparing for rising construction costs following the White House’s announcement of tariffs on materials from Canada and Mexico, effective March 4th. Analysts predict that:

• Home construction costs could rise 4% to 6% nationwide.
• Appliance and fixture prices may increase 10% to 20%.

Key Market Stats for February 2025

Active Listings

• Total: 10,448 (up 39.4% YoY)
• Top counties with the highest inventory growth:
  • Kittitas (+76.7%)
  • Snohomish (+65.3%)
  • Grant (+54.2%)
  • King (+52%)

Closed Sales

• Total: 4,268 homes sold (+1.9% YoY)
• Monthly increase: +14.5% from January 2025 (3,727 sales)
• Total dollar value: $3.32 billion (+5% YoY)

Median Sales Price

• Overall: $630,000 (+3.6% YoY)
• Highest median prices:
  • San Juan: $880,000
  • King: $820,000
  • Snohomish: $734,975
• Lowest median prices:
  • Columbia: $224,000
  • Pacific: $292,500
  • Okanogan: $322,500

New Construction

• Sales: 745 closed new construction sales (-12.1% YoY)
• Median price: $773,420 (+5.9% YoY)

Consumer and Broker Activity

• Keybox accesses: 115,611 (-3.9% YoY)
• Property showings: 97,256 (-8.3% YoY)
• Down Payment Resource (DPR) eligible properties: 13,537 (+14.3% YoY)

What This Means for Buyers and Sellers

With inventory showing signs of growth but affordability remaining a key concern, buyers and sellers alike need to approach the market strategically. While an increase in available homes provides buyers with more options, rising interest rates and elevated home prices continue to create financial hurdles. Buyers should be prepared to act quickly on well-priced homes while also exploring creative financing options, such as rate buydowns or adjustable-rate mortgages, to improve affordability.

For sellers, pricing and presentation are more important than ever. While demand remains steady, homes that are overpriced or not move-in ready may sit on the market longer. Thoughtful pricing strategies, professional staging, and targeted marketing can help sellers attract serious buyers and maximize their home’s value. Additionally, rising construction costs could put further upward pressure on home prices, making this a critical moment for sellers considering listing before competition increases.

Ready to navigate the Seattle real estate market?

Looking to buy, sell, or invest in the greater Seattle area? Contact Brad Howell today for expert insights and personalized guidance. With over 24 years of experience, Brad’s deep market knowledge and proven success make him the go-to real estate professional in Seattle, Tacoma, and beyond. Whether you’re selling your home or searching for the perfect investment, The Howell Group is here to navigate Seattle’s dynamic market with confidence. Let’s make your real estate goals a reality!

Brad Howell
The Howell Group
206-271-111
brad.howell@compass.com