Seattle Real Estate Market Trends and Predictions for 2025-2026
Seattle Housing Market Update: Modest Growth and Mixed Outlooks
The Seattle housing market in mid-2025 shows a picture of steady growth, but with some mixed forecasts on price trends. According to Zillow, the average home value in the Seattle-Tacoma-Bellevue area stands at approximately $734,697, having risen by 5.3% over the past year. Homes are selling quickly, in around 22 days, indicating sustained demand.
However, there's a contrasting forecast from Zillow's July 2025 data, predicting a 2% decline in home values for the year 2025 overall, due to rising inventory and market rebalancing towards pre-pandemic conditions. This forecast expects existing home sales to increase modestly by 2.5%, while inventory grows about 17% from the previous year, softening upward price pressure.
The median price in Seattle increased from $859,000 to $935,000, reflecting an 8.85% increase. Northeast Seattle areas 100, 110, 120, and 130 show varying price changes, with areas 100 and 110 showing a bit of a price dip and areas 120 and 130 showing growth.
In the condo market, the median price is up by roughly 7.09% from $550,000 to $589,000. Total active listings in Seattle's condo market have increased about 25.62%. Total active listings in King County have risen sharply by 46.69%.
Pending and closed sales are only slightly up in King County. In comparison to other Washington markets, Seattle's projected growth is relatively consistent, though some areas like Olympia are expected to see slightly more growth.
The mid-term forecast for Seattle by Zillow predicts a 1.1% increase by the end of April 2025. Over the next year, from January 2025 to January 2026, Zillow expects a 1.5% increase in home values in Seattle.
Rental market trends in Seattle also show continued demand, with rent growth slightly faster than the national average in 2025, especially in neighborhoods like Ballard, Capitol Hill, and South Lake Union. Occupancy remains strong for well-maintained, modern properties, supported by Seattle’s tech-driven economy and limited inventory of Class A multifamily units.
Looking into 2026, moderate growth of about 1-2% in home prices is anticipated, assuming no drastic economic changes. Factors such as local job growth, especially in the tech sector, limited housing supply, and desirability will likely support steady demand. However, rising interest rates and any economic slowdowns could slow the rate of increase.
In summary, Seattle’s housing market in 2025 is characterized by a tug-of-war between strong demand and growing inventory, leading to forecasts ranging from modest price appreciation to slight declines, depending on the source. Rental properties continue to perform well given market dynamics and demographics. The overall forecast for 2025 and into 2026 suggests moderate, steady growth but with caution due to broader economic factors. A crash in Seattle home prices seems unlikely, with the trend suggesting continued appreciation, albeit at a slower pace than in recent years.
- To capitalize on the Seattle housing market's modest growth, investors are seeking opportunities in real estate, with a particular focus on deals in the residential and condo markets.
- As the market rebalances and more homes become available, the mortgage industry may see an increase in investment as buyers take advantage of the mixed outlook on price trends.
- According to the latest housing-market news, the increase in inventory may lead to a shift in the market towards pre-pandemic conditions, offering prospective buyers a chance to invest in properties at a potentially lower price.
- Despite some areas in Seattle showing varying price changes, the housing market remains attractive for long-term investment due to steady demand, local job growth, especially in the tech sector, and limited housing supply.
- In consideration of the growth forecasted in the Seattle housing market, it's essential for those involved in finance, including mortgage lenders and investors, to stay updated on real-estate market news to make informed decisions and navigate the ongoing tug-of-war between strong demand and growing inventory.
