If you’ve been watching the Seattle housing market this year, you’ve likely noticed something: home prices are climbing — fast. For both buyers and sellers, understanding why this is happening is the first step to making smart moves.

Let’s break down the three biggest reasons prices are going up right now and what it means for you.

1. Buyers Are Back in the Market

When interest rates peaked in 2024, many buyers hit pause on their home search. They didn’t want to commit to higher monthly payments or felt unsure about where the market was heading.

But now? They’re back.

And not just a few of them. We’re seeing strong demand return as buyers feel more confident. Some have been waiting for months, and they’re now ready to act. This leads to more competition — which naturally pushes prices higher.

2. There Aren’t Enough Homes for Sale

Even though listings in February 2025 were higher than they were in February 2024, we’re still far below where we need to be.

Inventory is historically low. And in a growing city like Seattle, where demand keeps rising, this creates a perfect storm: too many buyers chasing too few homes.

With limited choices, homes that are well-priced and well-presented are getting snatched up quickly — often with multiple offers and over asking price.

3. Interest Rates Are Coming Down

The Federal Reserve has signaled that the worst of the rate hikes are likely behind us. Mortgage interest rates appear to have peaked in late 2024 and are now slowly trending downward.

That’s great news for buyers because it means you can afford more home for the same monthly payment.

This shift makes buying more attractive again — and as more buyers enter the market, it further increases demand and, in turn, home prices.

So What Does This Mean for You?

Let’s look at the takeaways depending on your position in the market.

For Buyers:

Yes, prices are rising — but don’t let that scare you off. With the right strategy and a knowledgeable agent, you can still:

• Lock in a good home at today’s prices before they climb further

• Use smart negotiation to get seller concessions

• Take advantage of better rates before more buyers jump in

Your next move: Get pre-approved, define your must-haves, and schedule a strategy session with a local agent who knows how to win in a competitive market.

For Sellers:

This is your moment. Low inventory, high demand, and improving affordability are working in your favor.

If your home is well-prepped, priced right, and marketed effectively, you’re in a strong position to:

• Sell quickly

• Generate multiple offers

• Maximize your return

Your next move: Book a home sale strategy session. A professional listing plan will help your property stand out and drive top-dollar offers.

Final Thoughts

The Seattle real estate market is shifting again — and fast. While headlines talk about rising prices, what matters most is knowing how to respond. Whether you’re buying your first home or thinking about selling your current one, now is the time to build a clear plan with the right team behind you.