Inventory continues to grow As buyers watch from the sidelines….
The 2025 real estate market in the Puget Sound region closed the year in a steady and predictable fashion. December market conditions closely mirrored those seen in October and November, continuing a pattern of rising inventory, softening prices, and a slower pace typical of historical winter markets.
Active listings were up 23% year over year, while prices declined approximately 2% for the third consecutive month compared to the same period in 2024. Closed sales increased just 4% year over year, signaling that buyer demand has not kept pace with the growing supply of homes.
“Although 30-year mortgage interest rates ended 2025 at their lowest point of the year, at 6.15%, buyers continue to face significant affordability challenges,” said Steven Bourassa, Director of the Washington Center for Real Estate Research at the University of Washington. These constraints appear to be keeping many buyers on the sidelines.
Despite the seasonal slowdown, December 2025 did show modest improvement over the prior year. Closed sales rose 4.1% year over year, with 5,010 transactions compared to 4,812 in December 2024. Month over month, sales increased 2.9% from November’s total of 4,870.
Locally, on the pricing front, single-family home values showed resilience. The median single-family sale price increased 2.9% year over year to $899,950 in King County, while Seattle’s median single-family home price rose 1.7% to $914,000.