Seattle Real Estate News

Is Homeownership Still Within Reach? For many in the Puget Sound region, homeownership has long symbolized stability and success. But in today’s market, that dream is becoming harder to achieve — even here in Seattle, a city known for its strong economy and high quality of life.

What it takes to buy a home in 2025? Nationwide, the median listing price hit $431,250 in April 2025. To afford a home at that price, a buyer needs to earn at least $114,000 a year — assuming a 20% down payment, a 30-year fixed-rate mortgage, and keeping monthly housing costs below 30% of gross income (a good rule of thumb).  Just six years ago, that same home would have cost significantly less. In 2018, the median price was around $314,950, and mortgage rates hovered near 4.1%. Today’s average rate? A steeper 6.76%, which has pushed affordability further out of reach.

In Seattle, things are even more challenging.  Seattle buyers face higher barriers - Seattle’s home prices are well above the national average. According to local MLS data, the median home price in King County in April 2025 officially reached $1 million  — meaning the income needed to buy a typical home here often exceeds $180,000–$250,000 per year, depending on your down payment and debts. For many buyers, particularly first-timers, that’s a tall order. 

Seattle isn’t alone. In other major metros like San Francisco, San Jose, and Boston, the income needed to afford a home tops $200,000 annually, and in some areas, it’s over $370,000.

How did we get here? During the pandemic, record-low interest rates ignited a buying frenzy across the country — and Seattle was no exception. Bidding wars were the norm. Some homes sold for hundreds of thousands over asking. Prices surged more than 50% between 2019 and 2024. But when rates began climbing in 2022, the market shifted. Sales slowed sharply. In fact, 2023 saw the lowest volume of U.S. home sales in nearly 30 years.

Signs of Hope for Seattle buyers? There’s some good news.

• Home prices are rising more slowly than during the boom years. 
• The median listing price increased just 0.3% year-over-year in April.
• Inventory is improving. Active listings in the Seattle metro area rose significantly this spring, giving buyers more options and reducing competition.
• Price reductions are becoming more common — roughly 18% of listings nationally saw cuts last month.
• Sellers are becoming more flexible on pricing, and the market is starting to rebalance — which could create opportunities for buyers who are prepared.

What should buyers in Seattle do? If you're hoping to buy in the Seattle area this year, preparation is everything. Here are a few smart steps:

• Get pre-approved for a mortgage early so you know what you can comfortably afford. Do this before you start looking for houses. It's a quick process and it provides security and comfort knowing how much you could afford. 
• Understand your financing options — including FHA, VA, HomeReady, and other low-down-payment programs.
• Talk to a local mortgage broker (like us) who can help navigate jumbo loan options, rate buydowns, or second mortgage strategies tailored to high-cost areas like King, Snohomish, and Pierce counties.
• Not all mortgage brokers are alike. A good mortgage broker must have empathy, a good listener, solutions provider with access to multiple loan programs from nationwide wholesale lenders. 

Even in a market with elevated prices and rates, there’s opportunity for savvy buyers — especially as sellers become more realistic and inventory continues to grow. 

Thinking about buying this year?  Let’s talk. We’ll help you understand your numbers, compare loan options, and put together a game plan for success — right here in the Seattle market or in anywhere else in Washington.