With rising home prices and the cost of living climbing due to inflation and tariffs, affordability remains a top concern for prospective homebuyers. Yet despite these challenges, there are still practical strategies to help buyers make smart moves in today’s market. One of the most important things for buyers to understand is that home values tend to rise over time. Historically, the housing market has appreciated in value in all but a handful of years over the last eight decades – five of them took place between 2008 to 2013 and two in the 1950’s – where it was zero growth. Waiting for a market crash or better timing may lead to higher home prices down the road. Buyers who purchase now can always refinance if interest rates drop later—while locking in today’s home price.
For those concerned about upfront costs, down payment assistance programs can be a game changer. Rather than spending months saving a few thousand dollars—during which time home values may increase—buyers can use available programs to get into a home sooner and start building equity. Affordability also hinges on credit. Even for buyers with less-than-perfect scores, there are tools and resources to guide them through improving their credit and qualifying for a loan. Paying down credit cards or resolving collections can open the door to financing opportunities.
There are also signs the market may be shifting slightly in buyers’ favor. Inventory is up to its highest level in five years, homes are sitting longer on the market, and many are selling below asking price. Additionally, higher interest rates have motivated more sellers to offer concessions—giving buyers more negotiating power than they’ve had in recent years.
Despite the hurdles, there is opportunity in today’s market. With the right guidance, support, and programs, buyers can take meaningful steps toward homeownership and avoid the higher costs of waiting.
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.
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:
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.
Seattle has lost a significant amount of affordable housing, particularly in the 2010s, leading to a dramatic rise in homelessness. In 2014 - the transformation of Panaroma House, an 18-story apartment building on First Hill, when new owners evicted tenants, renovated the building, and double rents - part of citywide trend where older, once affordable apartments became unaffordable.
A surge in apartment construction in the 2020s temporarily slowed rent increases, improving affordability for middle-income renters. However, construction costs, high interest rates, and lower housing permits in recent years could lead to renewed housing shortages and rent hikes, putting more people at risk of homelessness.
Without continued housing development, Seattle could repeat past trends, forcing its most vulnerable residents out of the market.
The new year will bring Seattle a new housing market - one without the runaway prices and jaw-dropping bidding wars. Yet still difficult for anyone but the region's wealthiest shoppers. Here's what real-estate forecasters expect for in 2023.
After 2 years of home prices shoot up by double-digit percentages - prices are now on the decline driven by elevated mortgage rates and fear of rescission.
Seattle-are prices could fall faster than the national trend with as much as 10% according to Redfin in part because Seattle home prices are already high and combined with current rising mortgage rates environment - this could push mortgage payments even more out of reach of prospective buyers.
Could I afford to buy a house?
The median mortgage payment here in King County is about $4,300 (median means half of mortgage payment is more than $4,300 and half of mortgage payment is less than $4,300). Here's the current median prices in greater Puget Sound Area.
By another estimate, Seattle homebuyers must earn $169,000 a year to afford the median home with 20% down payment. With persistence inflation and stagflation in 2023 - elevated mortgage rates appear to be here to stay after super-low mortgage rates of between 2% and 4% during the pandemic years. Fannie Mae projects rates will hover around 6% throughout 2023. Check out our temporary rate buydown option to help you manage your rate for the first few years of your loan payment.
Many people buy a house and stay put for years so they can build-up some equity when they eventually sell. However, this may not be the case for people who bought in the past few years (between Jan. 2021 through Sept 2022) and to sell in 2023 due to extenuating circumstances.