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Washington State NWMLS Market Update for February 2025



Market Recap

Traditionally a quiet month, February’s market activity reflected consumer sentiment in two important areas: affordability and available inventory.

30-year mortgage rates dropped slightly from 6.95% to 6.76%, but that may not be enough to encourage buyers when faced with continuing rising prices. The median price for residential homes and condominiums rose 2.4% from $615,000 in January 2025 to $630,000 in February 2025.

Although the number of active listings is significantly higher than a year ago (39.4% greater), the annual growth in the number of transactions is much smaller (only 1.9%).

Overall, inventory levels remain stubbornly low. Most industry experts consider a balanced market to have 4 to 6 months of inventory. However, at the current rate of sales, it would take less than two and a half months (2.45) to sell every home that is for sale in the NWMLS service area.

Meanwhile, homebuilders are bracing themselves for increases in construction costs following the White House’s announcement of tariffs on imports from Canada and Mexico beginning March 4th. “The prices of materials will have a major impact on affordability,” said Steven Bourassa, director of the Washington Center for Real Estate Research, “and increases in construction costs will affect the prices of existing homes in addition to new homes.”

“The values of existing structures are based on their replacement cost,” he continued. “CoreLogic has estimated that the tariffs might increase the cost of home construction by 4% to 6% across the country, while household fixtures, such as appliances and cabinets, could increase in price by 10% to 20%.”


Key Takeaways

Active Listings

  • The number of homes for sale increased 39.4% year-over-year throughout the NWMLS service area. There were 10,448 active listings on the market at the end of February 2025, with 24 out of 26 counties seeing a double-digit increase compared to February 2024. When compared to the previous month, active inventory increased by 207 listings (+2%), up from 10,241 in January 2025.
  • The six counties with the highest increases in active inventory were Kittitas (+76.7%), Snohomish (+65.3%), Grant (+54.2%), King (+52%), Whatcom (+48.2%) and Chelan (+42.7%).

Closed Sales

  • There were 4,268 closed sales of residential homes and condominium units in February 2025, an increase of 1.9% when compared to February 2024 (4,189). When compared to the previous month, the number of closed sales increased by 14.5%, up from 3,727 sales in January 2025.

Median Sales Price

  • Overall, the median price for residential homes and condominiums sold in February 2025 was $630,000, an increase of 3.6% when compared to February 2024 ($608,111).

Source: NWMLS 3/5/25



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A Marketplace for All: Open, Fair, Transparent and Comprehensive







For more than 40 years, Northwest MLS members have agreed to cooperate and share all properties they list for sale. Unlike other parts of the country where brokers facilitate “office exclusive” listings, which are only available to other brokers licensed with the listing firm, Northwest MLS members agree to share their residential listings with all other brokers and all potential buyers at the same time.

This open, fair, transparent, and comprehensive marketplace benefits sellers, buyers, brokers, and appraisers. The system also promotes competition and greatly supports and enhances fair housing principles.

Sellers: Exposure of listed properties to the entire marketplace through the MLS results in a higher price, better terms, and a faster sale by ensuring all potential buyers are aware of the opportunity. Complete data allows sellers and their brokers to confidently price their property based on comparable listings and sales. For sellers with specific privacy and security concerns, Northwest MLS has a myriad of tools available to address those issues. Sellers also have a range of choices about how their listing is marketed.

Buyers: Equal access to all available listed properties is critical to ensure that buyers are able to conveniently and efficiently find the most suitable property. Complete data allows buyers and their brokers to confidently make an offer based upon comparable listings and sales. Buyers are able to work with the firm and broker of choice, rather than being unfairly directed to a listing firm.  

Brokers: Listing brokers satisfy their legal duties to the seller through wide exposure of the property to the market, ensuring the highest price, best terms, and quickest sale. Listing brokers have access to a complete data set to advise sellers on pricing and other listing strategies. Buyer brokers are able to efficiently help buyers find the best property for the buyer with equal access to all available listings. Buyer brokers also have access to a complete data set to assist the buyer with making an offer based upon comparable listings and sales. 

Appraisers: Complete data empowers appraisers to efficiently and effectively appraise properties, ensuring accurate appraisals and timely closings. 

Real Estate Marketplace: The many industry partners who are essential to real estate transactions also rely on the comprehensive MLS system – including mortgage brokers, lenders, insurance companies, and title and escrow companies. Moreover economists, academics, and policy makers rely on the complete data set to better inform public policy decisions on zoning, building regulations, and related legislation and rules.

Competition: An open, fair, transparent, and comprehensive MLS system promotes competition among member firms and brokers, who compete on price and service – rather than competing by restricting knowledge of listed properties. This competitive landscape benefits consumers who are able to select the firm and broker that meets the consumer’s needs, rather than being forced to work directly with the listing firm.

Fair Housing: Private listings can have a discriminatory effect and disparate impact in violation of RCW 49.60.222 and WAC 162-36 because those listings are only available to an “exclusive” group of buyers.  Private listings are only available to those select buyers that the firm (and presumably the seller) chooses to provide information about the property. By restricting the visibility of available homes to a selected group, private listings can be fundamentally unfair and perpetuate the many inequities that have long plagued the housing system. Lisa Rice, president of the National Fair Housing Alliance, an advocacy organization in Washington, D.C., recently stated that: “[w]hen listings are confined to private channels, it becomes increasingly challenging to ensure compliance with fair housing laws designed to protect individuals from discrimination.” 
 
Northwest MLS is committed to continuing to promote and support the open, fair, transparent, and comprehensive marketplace that its members have advanced over the past 40 years. To that end, Northwest MLS will maintain and enforce its current rules that require members to input all residential listings before publicly promoting the property for sale.

(Published by the NWMLS 2/28/25)





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Homelessness is a Housing Problem, by Gregg Colburn and Clayton Page Aldern



I just finished listening to this book and HIGHLY recommend it! If you’ve ever wondered what leads to homelessness and why rates vary across different regions in the country, the authors completed a statistical analysis that includes the Seattle – King County region. As the title states, they found that housing market conditions, including the cost and availability of rental housing, account for the variations much more than what many people think. The authors propose solutions and explain why we must become more proactive rather than reactive.




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National Housing Snapshot for January 2025


January 2025 brought 4.08 million in sales, a median sales price of $396,900, and 3.5 months of inventory. The median sales price is up 4.8% year-over-year, and inventory was up 0.5 months from January 2024.

Read more details here…

Source: National Association of Realtors 2/21/25




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28005 150th Pl SE, Kent, WA 98042


$638,950

3 bedrooms; 2.5 bathrooms; 1,660 square feet

This beautifully maintained, move-in-ready home is a true gem! Featuring a brand-new roof, fresh carpet upstairs & newer exterior paint, it offers the perfect blend of style, comfort & peace of mind! The main level boasts durable LVP flooring, and an inviting, open floor plan filled with natural light. Stay cozy & energy-efficient with a gas fireplace, furnace & new water heater. You’ll appreciate the rounded corners throughout, versatile loft, skylight & the mostly finished bonus room in the converted third garage bay. The partially fenced, level backyard offers garden boxes & a shed-perfect for outdoor enjoyment. Nestled in an attractive neighborhood near Lake Meridian, with easy access to shopping in Kent & Covington, this is a must see!

A link to more details, photos, floor plan and the 360 degree tour on my website…

Sold 3/24/25 for $655,000



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Updated Forecast for 2025



Analysts are now anticipating just one rate cut in 2025, versus the two previously forecast. Some have even suggested that the Fed may not cut rates at all this year. This means that new homeowners and prospective buyers shouldn’t expect mortgage rate relief anytime soon. Also, with the lack of housing supply and demand expected to increase, housing prices are expected to continue to increase.





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Final Walk-Through Red Flags


Final walk-throughs can uncover problems that could delay closing. Most walk-throughs go smoothly, but it’s useful to know what to watch for and how to resolve issues quickly.

Read the details…




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Flashback to 1995 in the Housing Market vs Today



The housing market of 2024 mirrored some striking similarities to 1995, marking the lowest existing-home sales in nearly 30 years. However, the real estate landscape has changed dramatically.

Read how…




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90% of Markets Saw Home Price Gains in Fourth Quarter



Home prices finished 2024 strong, NAR data shows. But in the last five years alone, median home prices have jumped 50%.

Property owners are getting richer as home prices prove resilient against lower home sales. Nearly 90% of metro areas registered home price increases in the final quarter of 2024, according to the latest housing data from the National Association of REALTORS®. Fourteen percent of the 226 metros NAR tracks posted double-digit price gains, up from 7% in the third quarter.

Read more…



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Washington State NWMLS Market Update for January 2025



Market Recap

Traditionally a quieter month in the winter season, January’s activity continued the year-over-year growth trends observed in market activity over the last twelve months. The number of closed sales increased by 10.8% year-over-year (3,727 in January 2025 compared to 3,364 in January 2024), and NWMLS brokers added 6,693 new listings to the database in January 2025, an increase of 35.1% compared to January 2024 (4,954).

“For-sale inventories are continuing to rise from historical lows, and that’s helping bring some life to housing market activity in the NWMLS area,” said Selma Hepp, chief economist at CoreLogic.

But questions still abound regarding one of the most critical aspects of today’s market – affordability – and the political and economic factors that influence it.

“Both prices and interest rates continued to increase, having a negative effect on affordability,” said Steven Bourassa, director of the Washington Center for Real Estate Research (WCRER) at the University of Washington. “The median price rose by nearly 4% to $615,000, while interest rates rose from 6.69% at the end of January 2024 to 6.95% now.”

“Moreover, new immigration policies are expected to have an inflationary impact on home construction costs,” he continued, “And the National Association of Home Builders has warned that tariffs on imports from Canada and Mexico would have a significant impact on materials such as lumber and gypsum, while multiple researchers have documented the possible impact of immigration policy on labor supply for home builders.”

“All of this suggests that the affordability of homeownership, which has been declining, will continue to do so,” said Bourassa.

Key Takeaways

Active Inventory for Sale

  • The number of homes for sale increased 44.6% year-over-year throughout the NWMLS coverage area, with 22 out of 26 counties seeing a double-digit increase compared to January 2024. There were 10,241 active listings on the market at the end of January 2025, compared to 7,084 at the end of January 2024.
  • The five counties with the highest increases in active inventory for sale were Snohomish (+96.9%), King (+62.6%), Skagit (+54.4%), Kittitas (+53.8%) and Grant (+48.8%).
  • At the current rate of sales, there are less than three months (2.75) of available inventory.

Closed Sales

  • There were 3,727 closed sales of residential homes and condominium units in January 2025, an increase of 10.8% when compared to January 2024 (3,364).

 Median Sales Price

  • The median price for residential homes and condominiums increased by 3.6% year-over-year from $593,500 in January 2024 to $615,000 in January 2025.
  • The three counties with the highest median sale prices were San Juan ($850,000), King ($799,000), and Snohomish ($748,752), and the three counties with the lowest median sale prices were Ferry ($239,000), Okanogan ($318,000) and Grays Harbor ($329,000).

Source: NWMLS 2/5/2025