Market Update | February 2025
Affordability and Inventory Remain Challenges for the Market
Published March 5, 2025 | Courtesy of NWMLS
Market Recap
Traditionally a quiet month, February’s market activity reflected consumer sentiment in two important areas: affordability and available inventory.
30-year mortgage rates dropped slightly from 6.95% to 6.76%, but that may not be enough to encourage buyers when faced with continuing rising prices. The median price for residential homes and condominiums rose 2.4% from $615,000 in January 2025 to $630,000 in February 2025.
Although the number of active listings is significantly higher than a year ago (39.4% greater), the annual growth in the number of transactions is much smaller (only 1.9%). “On balance relative to a year ago, more homeowners are wanting to sell,” said Steven Bourassa, director of the Washington Center for Real Estate Research (WCRER), “but buyers continue to be challenged by affordability.”
Overall, inventory levels remain stubbornly low. Most industry experts consider a balanced market to have 4 to 6 months of inventory. However, at the current rate of sales, it would take less than two and a half months (2.45) to sell every home that is for sale in the NWMLS service area.
Meanwhile, homebuilders are bracing themselves for increases in construction costs following the White House’s announcement of tariffs on imports from Canada and Mexico beginning March 4th. “The prices of materials will have a major impact on affordability,” said Bourassa, “and increases in construction costs will affect the prices of existing homes in addition to new homes.”
“The values of existing structures are based on their replacement cost,” he continued. “CoreLogic has estimated that the tariffs might increase the cost of home construction by 4% to 6% across the country, while household fixtures, such as appliances and cabinets, could increase in price by 10% to 20%.”
Active Listings
There was a 39.4% increase in total number of properties listed for sale year-over-year, with 10,448 active listings on the market at the end of February 2025, compared to 7,495 at the end of February 2024. When compared to the previous month, active inventory increased by 207 listings (+2%), up from 10,241 in January 2025.
The number of homes for sale year-over-year increased throughout the NWMLS coverage area, with 24 out of 26 counties seeing a double-digit year-over-year increase. The six counties with highest year-over-year increases in active inventory for sale were Kittitas (+76.7%), Snohomish (+65.3%), Grant (+54.2%), King (+52%), Whatcom (+48.2%), and Chelan (+42.7%).
Year Over Year Active Listings
Island, King and Snohomish County
New Listings
NWMLS brokers added 6,346 new listings to the database in February 2025, a year-over-year decrease of 2.6% compared to February 2024 (6,513). When compared to the previous month (January 2025), new listings decreased by 5.2%, when 6,693 listings were added to the NWMLS database.
In the Greater Puget Sound region, King County had a slight increase in the number of new listings added year-over-year (+3.2%), while new listings decreased in Snohomish, Pierce, and Kitsap counties (-9.5%, -11.4%, and -15.2%, respectively). The three counties with the largest year-over-year increases were Kittitas (+37.5%), Grant (+34.4%), and Pacific (+16.13%).
Pending Sales
There were 5,863 residential units & condo units under contract in February 2025, a slight decrease (-1.4%) when compared to February 2024 (5,945). When compared to the previous month, the number of pending listings increased by 5.4%, up from 5,564 listings under contract in January 2025.
Changes in pending sales varied significantly across NWMLS’s 26-county coverage area. Nine counties experienced a double-digit increase in pending listings compared to the previous year, while another nine saw a double-digit decline. The remaining counties fell somewhere in between.
Closed Sales
The number of closed sales increased slightly by 1.9% year-over-year (4,268 in February 2025 compared to 4,189 in February 2024). When compared to the previous month, the number of closed sales increased by 14.5%, up from 3,727 sales in January 2025.
12 out of 26 counites saw an increase in the number of closed sales year-over-year. The six counties with the largest increases were Walla Walla (+44.4%), Chelan (+33.3%), Adams (+25%), Douglas (+22.7%), San Juan (+22.2%), and Clallam (+13%). The total dollar value of closed sales in February 2025 for residential homes was $2,856,599,410 and was $463,877,754 for condominiums ($3,320,477,164 in total), an increase of 5% when compared to February 2024.
Months of Inventory
A balanced market is considered to be 4 to 6 months by most industry experts. At the current rate of sales, it would take less than two and a half months (2.45) to sell every home that is active in the NWMLS inventory. The six counties with the lowest months of inventory in February 2025 were Snohomish (1.44), Thurston (2.04), Pierce (2.07), King (2.14), Kitsap (2.15), and Clallam (2.62).
Year Over Year Months of Inventory
Island, King, and Snohomish County
Median Price
Overall, the median price for residential homes and condominiums sold in February 2025 was $630,000, an increase of 3.6% when compared to February 2024 ($608,111). When compared to last month, the median price increased by 2.4%, up from $615,000 in January 2025.
The three counties with the highest median sale prices were San Juan ($880,000), King ($820,000), and Snohomish ($734,975), and the three counties with the lowest median sale prices were Columbia ($224,000), Pacific ($292,500), and Okanogan ($322,500).
