Fall 2025 Washington Real Estate Market Update

As the leaves start to turn and the air gets crisp, the Washington housing market is also shifting into a new season. This fall feels calmer than last year’s frenzy, but there’s still plenty happening. I’ve pulled together some insights to help you make sense of it all.

Home Prices: Still Holding Strong

Despite higher interest rates and affordability struggles, home prices continue to appreciate at a modest pace

This means if you’re a homeowner thinking about selling, your equity has likely held up well. And for buyers, while affordability is still a challenge, you may find sellers more willing to negotiate than they were a year ago.

What’s Happening Locally (North Sound Market Snapshot)

Looking at August 2025, homes under $750K in the North Sound (Snohomish, Skagit, and Island Counties) are still moving quickly, while higher-priced homes are taking a bit longer to sell. More listings are coming on the market, giving buyers a little more breathing room.
If you’ve been waiting to buy until the market cooled, this fall could be your window of opportunity.

Interest Rates: A Little Relief on the Horizon

Here’s the big one everyone’s watching: interest rates. The 30-year mortgage average has dipped to about 6.5%, the lowest we’ve seen since last fall.

The Federal Reserve is expected to cut rates in September, maybe again by the end of the year. Even a small cut could make a difference in monthly payments—something every buyer feels right away.

Listings vs. Affordability

Inventory is up, which should be good news. But here’s the catch: affordability hasn’t improved as quickly as inventory has.

This tug-of-war means sellers need to price realistically, and buyers need to stay patient and ready. The sweet spot is where motivated sellers and prepared buyers meet.

What This Means for You

• If you’re buying: You might finally have some negotiating power! Don’t be afraid to make an offer that fits your budget.

• If you’re selling: Price matters more than ever. Staged, well-priced homes are still moving, while overpriced ones are sitting.

• If you’re just watching: This fall could be a turning point, with the Fed signaling lower rates ahead. It’s worth keeping an eye on.

Our Take

Fall is always a season of change and this year, Washington’s real estate market reflects that. It’s less about the wild bidding wars of the past and more about thoughtful decisions, careful pricing, and watching those mortgage rates closely.

Whether you’re thinking about buying, selling, or just staying put, we’re here to help you navigate this shifting market with clarity (and maybe even a pumpkin spice latte in hand).