Residential Real Estate Market Update
Back in April, I published a piece here regarding the status of Western Washington Real Estate inventory. It outlined the large jump in residential listings across King and Snohomish Counties in March of 2025, compared to March of 2024, reflecting a noticeable increase in the availability of real estate. This post serves as a brief follow up on that article.
That trend has generally continued. By May of 2025, inventory had increased to approximately 2.1 months in Snohomish County and 3.2 months in King County, reflecting the highest level of inventory in three years. Real estate brokers differ on the number of months of inventory required to have a ‘balanced’ market between buyers and sellers, but generally, 3-5 months seems to be an area of relative consensus. In other words, even with the sharp increase in listings, the Puget Sound area has not yet achieved a balanced market between buyers and sellers. Even so, the market throughout 2025 has been trending towards a more equalized playing field between buyers and sellers.
However, some very recent signs have suggested the possibility of at least some reversal in the rise of inventory, as King County listings dropped approximately 17% from May to June, with home prices increasing slightly as well. This downward shift could be for a variety of reasons, including decreased competition among buyers making sellers apprehensive. Additionally, national statistics from Redfin indicate that over 55% of homeowners still have a mortgage rate of under 4%, which could explain some lack of general eagerness to sell. In other words, many sellers might be biding their time.
It may be too soon to call this drop in listings indicative of any overall change in the trends that we have noticed over the last year. The mortgage rates are nothing new, and inventory still rose steadily over the course of the year. In other words, listings are still far higher than they were six months ago. Nonetheless, there may be some signs that the market is cooling, both in terms of the very recent drop in listings, and other non-real estate indicators, such as the rise of layoffs, particularly in the tech industry. The long-term significance of these signs remains to be seen.
At the same time, competition among buyers remains high. Indeed, based on data from 2025, King and Snohomish counties have seen multiple offer settings and waived financing contingencies in around a third of transactions, while inspections have been waived in almost two-thirds of transactions. This reflects a strong demand from buyers in the face of increased listings, even if it does not match the level seen in 2023 and 2024. Moreover, with mortgage rates having also dipped slightly, and the summertime being a popular time to purchase, several factors suggest that we may see a pending uptick in purchase activity.
Whatever the changes that occur from month to month, the real estate market in the Pacific Northwest appears to be holding strong this year, and while the trend appears to be towards a more balanced market, competition remains healthy. It can truly be something of a fool’s errand to try and predict real estate trends, and to anticipate what is coming down the road, but we will continue to monitor the conditions to better understand the market that buyers and sellers face.
The attorneys at Beresford Booth have significant experience with the purchase and sale of both residential and commercial real estate. Whether you need assistance with complex commercial transactions, off market residential transactions, understanding title issues involved, or litigation involving commercial or residential real estate, the attorneys at Beresford Booth can help you. Please feel free to contact us at info@beresfordlaw.com or by phone at (425) 776-4100.
