What is Going on with Western Washington Real Estate Inventory? (Update!)
Back in April of 2025, I posted an article here regarding increasing inventory in King County and Snohomish County resulting in some amount of breathing room for buyers, but not quite a buyers’ market. Now, nine months later, the trends seen at the beginning of 2025 have only continued. Active listings in Washington State increased approximately 23% year over year from December of 2024 to December of 2025, while closed sales rose about 4% in that same time-period. Inventory has also risen, particularly so in Seattle, which now has about a 3.5-month supply of inventory, which is the largest in several years.
On the county level, King County’s active listings increased by over 34% at the end of 2025 compared to 2024, up to almost 2,000 listings. Snohomish County increased over 28% to almost 900 listings in that same time-period, while Pierce County increased by almost 20% to just over 1,500 active listings. Moreover, as more companies signal a part, or full shift, in “return to office” policies, inventory has started to pile up in areas outside of the business core, as many folks elect to try to move closer to their offices. Additionally, reviewing the market at a deeper level, shows mixed data. The median sales price for residential homes and condominiums went down 1.8% statewide from December of 2024 to December of 2025, but with sizeable variance between the counties, with King County rising to $899,000, Snohomish County declining to $760,000, and Pierce County staying roughly even at $560,000.
The data, again, does not seem to signal the end of a healthy market. Instead, it appears to be a continuation of the course correction outlined in my previous post. Although the percentage of sales did not rise a lot, it nonetheless rose, demonstrating a still-present demand in the market for real estate. Mortgage rates declined to around 6.15% at the end of 2025, giving further options to buyers. Pricing has not seen a significant decline across the board, but rather, a rather modest decline consistent with the increase in inventory and competition. The increase in inventory has also resulted in homes staying on the market longer, giving buyers more leverage and choice than in the past several years.
While buyers have less competition, and the market seems slower, it also really depends on the properties on the market that one focuses upon. Residential resales still favor sellers overall, whereas condominium units and new construction still have higher inventory and favor stronger negotiation from buyers. This allows buyers to be more thoughtful and selective, and to largely return to more prudent transaction tactics such as utilizing essential contingencies, such as inspection and financing contingencies. In recent years, many buyers waived these contingencies to appear more competitive and sometimes found themselves in difficult situations as a result.
Ultimately, the “balancing” of the market gives buyers more opportunities while still allowing savvy sellers to enter into desirable transactions when using good information and guidance. A balanced market also means that disputes might arise more because buyers have more recourse than they used to in transactions gone wrong, and because sellers have fewer backup purchasers (i.e., fewer bidding wars) to fall back on, and thus more to lose. The metrics show an evening-out between buyer and seller power, rather than pointing to a suffering market. Given how the past several years (2021-2023) skewed heavily to favor residential sellers, this slowing may seem ominous in the short run, but this market rebalance may more likely keep the local real estate market healthier overall. Having said that, markets are unpredictable, and my next update could very well involve an admission that I got this wrong. Stay tuned for me to (possibly, but hopefully not!) eat my words.
The attorneys at Beresford Booth have significant experience relating to the purchase and sale of both commercial and residential real estate, and the associated issues and disputes that may arise. If you run into any concerns in the purchase or sale of your real estate, or need assistance with any real estate issues, the attorneys at Beresford Booth remain available to assist you. Please contact Beresford Booth at info@beresfordlaw.com or by phone at (425) 776-4100.