2025 Puget Sound Housing Market Shifts Buyers & Sellers Must Know

With mortgage rates near 7%, buyers are cautious and the market remains competitive, but sellers are stepping up with concessions like rate buydowns and other incentives.

Making Sense of Puget Sound’s Housing Puzzle

The Puget Sound market – from Seattle to Bellevue to Tacoma – is full of contrasts right now. We’re seeing record-high prices on one side, but at the same time, more inventory is creeping in, and sellers are offering concessions we haven’t seen in years. That might feel a little contradictory, right? How can homes be this expensive, yet buyers have more leverage than before? Let’s unpack what’s really happening here and why it all actually makes sense.

Record Prices, Even with High Rates

Let’s start with the headline: home prices are high. In King County, the median price for a single-family home just crossed the $1M mark. We’re talking record territory here. And it’s not just Seattle – prices are climbing across the region, including down through Tacoma.

Now, with rates still close to the 7% range, you’d think that would cool things off. And it has, to a point. Some buyers are holding back. But prices haven’t dropped much because the number of homes for sale is still super low. Homeowners who locked in 2-3% mortgage rates aren’t in a rush to sell. So, we’ve got fewer homes hitting the market, and the ones that do show up are still seeing strong interest. It’s supply and demand 101 – even with fewer buyers out there, there are even fewer sellers.

Inventory Is Ticking Up – But Still Low in Context

It’s true, we’re seeing more listings hit the market than a year or two ago. Seattle hit almost 4 months of inventory this past fall – the most we’ve seen in a while. That’s better than the rock-bottom supply we’ve had, but still not enough to call it a buyer’s market. A healthy market usually sits around 5-6 months of inventory.

A lot of these new listings are from sellers trying to time the market before rates move again. But demand is more cautious now, so some homes are sitting longer. Especially ones that came out overpriced. The homes that are priced right and show well? Still moving. But the days of 20 offers and waiving every contingency are behind us for now.

Market Momentum Shifted After Q1

We kicked off 2025 with a strong first quarter. Buyer activity was solid, inventory was still tight, and homes were moving with decent momentum. Homes were selling quickly, multiple offers were common, and confidence was building. But as talk around tariffs and trade tensions started dominating the headlines, we noticed a shift.

Tariff Talk, Seller Concessions, & Buyer Hesitation

One of the most noticeable changes in recent weeks is the pause from buyers who would typically be active in the market this time of year. The increased chatter around tariffs and global trade tensions has created just enough uncertainty to spook some folks. And when buyers get nervous, especially about the broader economy or potential cost increases, they tend to hit the brakes on big financial decisions.

We’ve seen this play out before—when confidence dips, so does buyer activity. It’s not that they’ve disappeared entirely, but they’re more cautious, more patient, and often waiting to see how things shake out. That pause is a big part of why some listings are sitting longer than expected and why seller concessions have become more common.

When buyers face uncertainty—whether it's economic news, political headlines, or the ripple effect of new tariffs—they tend to pause. Big financial decisions like buying a home get put on hold. That hesitation is part of why some listings are sitting longer than expected right now. It’s also a big driver behind the uptick in seller concessions.

Here’s a big shift: seller concessions are way more common. About 70% of sellers in the Seattle area are giving something – maybe covering closing costs, a price drop, buying down the buyer’s rate, or tossing in a home warranty.

This doesn’t mean home values are dropping dramatically – just that sellers are offering behind-the-scenes sweeteners to get deals across the finish line. It’s a way to bridge the affordability gap without dropping the headline number.

Why It All Adds Up (and What to Do About It)

So, how do we make sense of high prices and high concessions happening at the same time? It comes down to tight supply and affordability pressure. There’s still not enough inventory to tank prices, but buyers need help to make these payments work.

If you’re buying: there’s an opportunity here. You won’t have to fight a dozen other offers like in 2021. You can negotiate, and in some cases, you can get the seller to help with your closing costs or interest rate. That can make a big difference in your monthly payment.

If you’re selling: this is still a good market, especially if your home is clean, move-in ready, and priced right. But be smart. Price it properly from the start and be open to offering something that helps the buyer. A rate buydown or small concession can make your home the one that gets picked.

Final Thoughts

This market is full of mixed signals. Prices are still high, but it’s not the wild ride we saw in 2021 and the beginning of 2022. Buyers have more breathing room, and sellers have to be a bit more strategic. It’s not a bad market by any means—it’s just different, and the game plan & prep matters more than ever.

We’re in a moment where both sides can win—but only if expectations are dialed in. Pricing right matters. Presentation matters. Flexibility on both sides matters. If you’re thinking about buying or selling this year, let’s connect. I’d love to help you read between the lines and put a smart plan in place that works for this market.. Prices are still high, but it’s no longer a free-for-all. Buyers have a bit more breathing room, and sellers have to work a little harder. But that doesn’t mean it’s a bad market – it just means the strategy matters.

If you’re thinking about making a move this year, let’s talk. I’m happy to help you make sense of it all and come up with a game plan that works in today’s market.