Local Market Update – October 2025 - Windermere Capitol Hill

Local Market Update – October 2025

September Market Update: Inventory Builds, Prices Hold, and Balance Returns

As we head into fall, the Puget Sound housing market continues its steady shift toward balance. After several years of high demand and rapid price growth, inventory is climbing, and prices are beginning to stabilize. Three out of four of our regional markets are now considered balanced—a notable change from the competitive conditions of recent years.

While prices remain relatively firm, continued inventory growth could bring added pressure in the coming months. With mortgage rates hovering around 6.3%, the fourth quarter may test both buyer motivation and seller flexibility.

King County: Inventory Climbs, Sales Pick Up Slightly

King County’s median residential price rose 1% year over year to $957,000—up just slightly from August’s $950,000. Active listings increased 4% month over month and 26% year over year, giving buyers more to choose from.

Buyer activity stayed steady: pending sales ticked up 1%, and closed sales rose 3%. In the condo market, the median price dipped 6% to $527,500, even as inventory grew 20%, offering opportunities for buyers seeking more affordable options.

Seattle: Price Growth Slows, Buyers Show Interest

Seattle’s single-family median price reached $975,000 in September, up 4% from last year. Inventory rose 12%, giving buyers a bit more room to negotiate. Closed sales increased 7%, though pending sales slipped 2%, signaling a potential softening ahead.

Price reductions played a bigger role—37% of homes sold below original list price. In the condo market, the median price dropped 14% to $523,687. But activity surged, with closed sales jumping 45% as buyers responded to more accessible price points.

Eastside: Inventory Surge Gives Buyers the Edge

The Eastside saw 3% annual price growth, with the median single-family home selling for $1,575,000. But with active listings up 60%, buyers had more leverage than in past months. Nearly half of all sales—45%—closed after a price reduction.

Buyer interest is slowly gaining momentum. Pending sales rose 6% year over year and 12% month over month. Condos also gained ground, with the median price up 6% to $730,000 and inventory up 32%.

Snohomish County: Prices Dip, but Sellers Still Hold Some Power

Snohomish County’s single-family median price fell 3% year over year to $750,000. Inventory jumped 39%, but demand lagged behind—closed sales dropped 11%, and pending sales were down 1%.

Still, Snohomish remains the only local market leaning in favor of sellers. In the condo sector, prices slid 9% to $482,500, while listings surged 55%, creating more possibilities for buyers willing to shop around.

Looking Ahead: A Market in Transition

With more homes hitting the market and prices leveling off, the Puget Sound region is showing signs of long-awaited balance. Whether buyers take advantage this fall may depend on where interest rates and broader economic confidence go next.

For both buyers and sellers, smart strategy matters more than ever. Whether you're looking to make a move or just keeping an eye on the market, our Windermere team is here to guide you with the insights and tools you need.