Washington State Housing Forecast for 2025

Published:
May 20, 2019
Last updated:
January 7, 2025
In This Article

Home prices are slightly up from last year in Washington State and now sit at $589,272 as of January 2025. Prices increased a bit throughout the year, and they’re expected to continue in 2025. Low inventory is a big driver of rising home prices, which continues to be very tight in many housing centers across the state, especially in King and Pierce Counties.

Mortgage rates have remained relatively stable throughout 2024, and are expected to decline this year, though affordability remains an issue in 2024. As such, buyers may want to get into the Washington real estate market now before home prices continue to increase even more.

housing-market-forecast-2025_WA

Median Prices Up

The median sales price for a typical house in Washington State as of January 2025 is $589,272 up 3.5% from last year.

Closed Sales Are Up

The number of closed sales increased in Washington State by 17.5% from January 2024 to January 2025.

King and Pierce Counties to Remain the State’s Hottest

Real estate experts say low inventory will mean the hottest housing market in years in King and Pierce Counties. Median home sale prices are up 5.5% and 3.7% in King County and Pierce County, respectively, according to RedFin.

Days on the Market

According to RedFin, listings spend an average of 31 days on the market before selling.

30-Year Fixed-Rate Mortgage Rate

Current mortgage rates in WA are currently 6.69% for conforming 30-year mortgages, 6.05% for 15-year mortgages, and 6.81% for 5/1 ARMs. For jumbo loans, the numbers in the state are 6.67% for 30-year mortgages, 6.74% for 15-year mortgages, and 6.58% for 5/1 ARMs.

View WA State Mortgage Rates

Expect Continued Strong Sales in 2025

Homes on the market in Washington State are forecasted to sell at a healthy pace in 2025, as interest rates are expected to continue to decrease.

Seattle Metro Area Sees Strong Price Gains

According to Zillow, home values in the Seattle-Tacoma-Bellevue metro area saw strong gains throughout 2024:

  • Seattle $850,864
  • Tacoma $478,906
  • Bellevue $1,446,915

Tight Housing Supply in Seattle

Seattle continues to see a shortage of housing inventory, with only a 2.4-month supply of homes available right now.

Homes in Seattle Sell Quickly

In Seattle, homes sell 26 days after hitting the market, up 11% from the same time last year.

Increase in Homes Sold in Seattle

Seattle saw 635 home sales in November 2024, up 15.5% from the same month last year.

Get an Instant Mortgage Rate Quote Today

Need a Home Loan in Washington State?

If you have questions about mortgages in Washington State or are ready to apply for one, we’re happy to help. Sammamish Mortgage is a mortgage firm in Bellevue, Washington, serving the entire state, as well as Colorado, Oregon, California, and Idaho since 1992. Our experts will walk you through our mortgage programs to see which one is best for you. Contact us today with any questions you have about home loans in Washington State.

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