If you've been following Seattle real estate this year, you've likely felt a little whiplash. From unpredictable mortgage rates to sudden shifts in buyer behavior, 2025 has been anything but smooth sailing. Whether you're browsing Zillow in Seattle WA or watching houses for sale in Seattle rise and fall in price, it's clear we're in a very unique market.

Let’s take a look at what’s actually happened in the first half of 2025, why buyers and sellers are reacting the way they are, and what you can expect if you're planning a move this year.

Mortgage Rates: A Welcome Drop

We started the year with high interest rates that pushed many buyers to the sidelines. But recently, we've seen a shift. As of mid-year, rates have settled around 6.67% — one of the lowest points we've seen in months. For buyers, this is a big deal.

Lower rates mean more buying power. A lower monthly payment can be the difference between affording a condo in Belltown or upgrading to a craftsman in Ballard. Many potential buyers who were priced out earlier this year are now re-entering the market to take advantage.

For sellers, this also brings more hope. More buyers means more showings, more offers, and more competition, which can help sellers reach their price goals faster.

The Tech Market Ripple Effect

Seattle's housing market is closely tied to the tech industry. In March, new tariffs caused the stock market to drop quickly. For many local buyers who rely on stock-based income or equity for their down payments, this was a moment of hesitation.

Even well-qualified buyers began to delay their purchases, waiting to see how the market would respond. This created a slowdown in what is usually the beginning of Seattle’s spring real estate season.

We also saw some sellers pull listings off the market, concerned about softening demand. But that doesn't mean the market crashed — it simply shifted. And with Seattle’s strong fundamentals, that pause is now showing signs of rebounding.

Are Homes Still Selling?

Yes, homes are still selling in Seattle. But not all at the same speed or price as we saw during the frenzy of the pandemic years.

Some homes are taking longer to sell. Instead of flying off the market in three days, they might take three weeks. And instead of multiple offers over asking, buyers are negotiating more — sometimes even below list price.

That’s not a crash. That’s a correction. And for many buyers, especially those looking for a primary residence, this is actually a good thing. They can tour more homes, consider their options, and negotiate better terms.

Sellers, meanwhile, need to adjust their expectations. Pricing right and preparing the home well is more important than ever. Buyers are being cautious and want to feel confident they’re getting a good deal.

Where Are We Headed?

The rest of 2025 will largely depend on two things:

1. Interest Rates: If rates hold steady or drop even slightly, buyer demand will pick up. We’ve already seen signs of this happening in neighborhoods like Green Lake and Queen Anne.

2. Tech Sector Stability: Because so many Seattle buyers work in tech or are influenced by the stock market, future swings could still impact the local housing market. When confidence is high, demand increases. When stocks dip, buyers hit pause.

But overall, most signs point to a healthy if slightly cautious second half of the year.

What Should Buyers Do Now?

If you're looking to buy, this could be your window of opportunity.

• You have more choices: Inventory is up in many neighborhoods.

• You have room to negotiate: Sellers are more open to discussions.

• Rates are better: Locking in before the next possible hike could save you thousands over the life of your loan.

Work with a local Seattle real estate agent who can guide you based on today’s data and help you move quickly when the right home comes up.

What Should Sellers Know?

Selling in 2025 is not like selling in 2021. But that’s not a bad thing. With the right strategy, listings are still moving.

• Price matters: Buyers have options, so a competitive price is key.

• Presentation is everything: Professional photos, staging, and strong marketing make a difference.

• Be flexible: A willingness to negotiate on price or repairs can help your home stand out.

If you’re not sure whether to list now or wait, talk to a local expert who can give you real-time feedback on what homes are selling in your neighborhood and why.

The Bottom Line

Seattle real estate in 2025 is different, but not doomed. It’s a market that rewards preparation, patience, and the right guidance. If you're thinking about buying or selling this year, you don’t need to navigate it alone.

Have questions about your next move? Reach out anytime — I'm here to help you make sense of this market and make a smart move.