Seattle Housing Market Update: A Surge in Listings Amid Persistent Challenges
The Numbers at a Glance: In October 2024, the number of homes available for purchase in the Seattle area increased by 27.5% compared to the same time last year, according to Redfin. This significant jump suggests a potential shift in the region's housing market dynamics, offering a glimmer of hope for buyers.
Why This Matters: The persistent “mortgage lock-in” effect has kept many homeowners from selling their properties due to the reluctance to give up lower interest rates. This has fueled a national housing crunch. While this effect is unlikely to disappear in 2025, experts predict an easing of inventory constraints as more homeowners decide to list their properties despite higher mortgage rates.
The Bigger Picture: Economists anticipate mortgage rates will stay above 6% throughout 2025, discouraging some sellers but prompting others to capitalize on rising buyer demand. Danielle Hale, chief economist at Realtor.com, highlights that a “substantial number” of homeowners remain hesitant to forfeit their current, more affordable rates. However, recent data suggests a more dynamic market in the Seattle metro area:
Over the four weeks ending December 8, newly listed homes in the Seattle area were up 16.9% compared to the previous year, marking the third-highest increase among the 50 largest U.S. metro areas.
Demand indicators, such as home tours, mortgage applications, and pending sales, have risen nationwide, according to Redfin.
What’s Driving Change:
Increased Buyer Activity: The uptick in home tours and mortgage applications indicates that buyers are adjusting to the reality of higher rates. As Redfin’s economic research lead Chen Zhao puts it, “demand is settling into its new, post-election normal.”
Seller Motivation: Some homeowners are strategically listing their properties to leverage the renewed demand.
Election-Year Uncertainty Fading: Earlier in the year, financial uncertainty tied to the November presidential election contributed to subdued buyer interest. As Zhao explains, “house hunters were hibernating,” but now confidence is gradually returning.
The Bottom Line: Despite the encouraging signs of increased inventory, 2025 will likely remain a challenging year for buyers navigating elevated mortgage rates and heightened competition. For those looking to enter the market, staying informed and working closely with a real estate professional will be key to making strategic decisions in this evolving landscape.
Pro Tip for Buyers and Sellers: If you’re considering buying or selling in the Seattle area, now is the time to act while inventory levels are rising and demand is stabilizing. Reach out to a local real estate expert to explore your options and develop a plan tailored to your goals.
