The Washington real estate market continues to shift in 2025, influenced by rising mortgage rates, limited housing supply, and changing buyer priorities. Whether you’re planning to sell or buy this year, understanding these trends can help you make smarter decisions.
After several years of rapid appreciation, Washington home prices are beginning to stabilize. While some counties are still seeing modest increases, others are flattening as affordability challenges keep buyers cautious.
With interest rates still above historic lows, buyers are more selective. According to Freddie Mac, 30-year mortgage rates are averaging around 6–7% in early 2025, compared to the 3–4% levels seen just a few years ago.
Low housing supply remains one of the biggest hurdles. Washington is still experiencing fewer active listings than pre-2020 levels, keeping competition strong in desirable areas like Pierce and King County.
Many buyers are moving away from Seattle’s core and into suburban communities like Puyallup, Bonney Lake, and Lake Tapps. Lower prices and more space are attracting families and remote workers alike.
As in past years, spring and summer remain the busiest seasons for buying and selling. Sellers who list in May and June typically see stronger competition and higher sales prices compared to winter months.
Sellers should focus on competitive pricing and move-in readiness to attract buyers navigating higher rates. Buyers, on the other hand, should be prepared for continued competition in key markets but may benefit from stabilizing prices.
