Seattle Real Estate News

What Today’s High Prices and Mortgage Rates Mean for Buyers, Sellers, and Agents

Despite high mortgage rates and slower sales activity, home prices across the U.S.—and here in Seattle—remain at or near record levels. In fact, national median prices hit an all-time high in June 2025, even as sales volume dipped. For buyers, sellers, and real estate professionals, these conditions offer both challenges and opportunities.

National Housing Market Highlights

• Median U.S. home price: Reached a new record high in June 2025
• Sales activity: Slowing nationally as buyers contend with affordability
• Inventory: Still limited, helping to support prices
• Regional differences: Some markets like Austin are seeing price corrections, while others remain strong
• Key takeaway: Prices remain elevated due to low housing supply, despite higher borrowing costs

Seattle Housing Market Snapshot

Home Prices

• Median sale price (June 2025): $930,000 — up 9.4% year-over-year (Redfin)
• Average resale price in King County: $1.12 million
• Zillow Home Value Index: $880,401 — down slightly at –0.8% YoY
• Conclusion: Prices remain stable or rising, depending on the source, with strong demand holding values firm

Inventory and Sales Activity

• Seattle listings: Up ~47% year-over-year
• Eastside listings: Nearly doubled
• Active inventory: Roughly 2.0–2.5 months of supply
• Time on market: Homes go pending in a median of 11 days
• Regional sales changes (April–May):
  

  Seattle proper: +5.17%

  • North King County: +13.7%
  • Eastside: –5.98%
  • Southwest King County: –6.34%

Mortgage Rates and Buyer Trends

• Current mortgage rates: Hovering between 6.5% and 7%
• Impact on buyers: Reduced affordability, with many buyers becoming more selective
• Seller concessions: Over 70% of listings in early 2025 included incentives such as rate buydowns or closing cost credits

What This Means for You

Sellers

• You’re still in a good position if priced correctly
• Be prepared to negotiate or offer buyer incentives, especially for homes that linger
• High-quality presentation and realistic pricing are key

Buyers

• You now have more options and slightly more negotiating room
• Expect fewer bidding wars—but stay prepared to act fast on well-priced homes
• Consider strategies like temporary rate buydowns or seller-paid closing costs to ease affordability

Real Estate Professionals

• Every neighborhood is performing differently—local knowledge is critical
• Stay proactive: guide clients through financing options and market expectations
• Use this window to re-engage both buyers and sellers who may have paused earlier this year

Final Thoughts

Seattle’s housing market is no longer overheated—but it’s far from cold. Prices remain historically high, though competition has softened. We’re entering a more balanced phase, where well-informed buyers and realistic sellers can find success with the right strategy.

Whether you’re planning to buy, sell, or invest, understanding how national trends and local shifts interact is essential in today’s market.

Need Help Navigating the Market?

As a local mortgage broker serving the Seattle area, I’d be happy to walk you through today’s financing options, provide custom payment breakdowns, or help you evaluate your purchasing power in this unique market cycle.

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