Seattle Housing Market Forecast 2024 – 2025

The 2024 FHA Loan Handbook

On this page: an expert assessment of the Seattle-area real estate market in 2024, with some home price predictions extending into early 2025.

Housing market forecasts for the Seattle, Washington metro area predict that home values will rise steadily during 2024. But we probably won’t see anything close to the double-digit annual gains recorded during the past few years, when prices were skyrocketing.

But this real estate market still has its challenges, and a lack of inventory ranks up at the top. The Seattle area currently has one of the lowest levels of housing supply among the nation’s major metro areas. This shortage will challenge home buyers in 2024, as it has in the past.

Here are the latest Seattle real estate market trends for 2024, along with a forecast stretching into 2025.

Current Conditions in Seattle’s Housing Market

The Seattle real estate market is moving at a slower pace compared to previous years, but home prices are beginning to rise again due to very low inventory levels. This sums up current housing market conditions across the Seattle-Tacoma metro area, as of early 2024.

Here are three things to know about the Seattle housing market in early 2024:

1. A Significant Increase in ‘Time on Market’

In February, researchers from published a report that showed the latest housing market trends for the nation’s 50 largest metro areas. Among other things, this detailed report showed the typical time it takes to sell a house in each of those metros.

Economists often refer to this as the “time on market.”

By this measurement, the Seattle real estate market has slowed down over the past year or so. It had the second largest increase in time on market among the 50 metros included in the report.

According to the February 2024 report:

“However, eight markets saw homes spend more time on the market than typical 2017 to 2019 pre-pandemic timing including San Francisco (+9 days), Seattle (+9 days) and Denver (+7 days).”

Home buyers in the Seattle area can view this as a positive trend.

When the time on market increases over a certain period of time, it means that it’s taking longer to sell a house. It also means that home buyers have a bit more negotiating leverage than they did in the past, since sellers could be more eager to make a deal.

Seattle is a long way from being a classic buyer’s market. The current inventory situation continues to favor sellers over buyers. But this trend still brings good news for those who plan to buy a home in the Seattle area during 2024.

2. More Good News for Buyers: New Listings Are Up 20%

Here’s some additional good news for Seattle-area home buyers in 2024. While real estate market inventory levels have declined over the past year, more homes have been coming onto the market recently.

In fact, the Seattle housing market recently posted the second largest increase in new real estate listings among the nation’s 50 largest metropolitan areas.

According to the February 2024 mentioned earlier:

“In January, 27 metros saw new listings increase over the previous year. The metros which saw the largest growth in newly listed homes included Denver (+21.3%), Seattle (+20.6%) and Miami (+20.2%).”

This is a noteworthy trend, especially if it continues going forward. Tight inventory conditions have plagued Seattle home buyers for many years, so any gains in this area would be a win for buyers.

Some of this inventory growth resulted from declining mortgage rates.

As you might already know, mortgage rates spiked last year and reached a 20-year high point back in October. As a result, homeowners with low-interest mortgages were reluctant to sell their homes and get new mortgages at higher rates.

This so-called mortgage rate “lock-in effect” reduced inventory levels across the Seattle real estate market.

But the reluctance to sell has since eased a bit, as mortgage rates have trended downward. This partly accounts for the rise in new listings in early 2024.

3. Home Prices Are Beginning to Rise Again

In terms of home prices, the Seattle real estate market has a history of peaks and valleys dating back to the housing crash and Great Recession of 2007 – 2009.

But the home price trends of the past three years can be summed up in a single sentence:

Seattle-area home values skyrocketed during the pandemic, reached an all-time high in the summer of 2022, and dropped significantly going into the first part of 2023.

Now, a few months into 2024, the Seattle housing market is showing signs of a rebound with home prices starting to creep upward again. Home buyers should pay close attention to this trend.

Historically speaking, house values in the Seattle-Tacoma-Bellevue metro area tend to rise gradually over time. But this market is susceptible to periods of extreme price appreciation (what the media calls “skyrocketing prices”) followed by brief but often severe downturns.

The most recent example of this extreme cycle occurred from 2021 – 2023.

What’s the Real Estate Forecast for 2024?

That’s the past, but what about the future?

At least one forecast for the Seattle real estate market for 2024 – 2025 predicted that prices would rise this year, perhaps by as much as 5%. That prediction came from Zillow and was issued in February of 2024.

The company predicted the median home value for the Seattle-Tacoma metro area would rise by around 5.3% from January 2024 – January 2025.

Here are two more housing market forecasts, from a report in The Seattle Times:

Mason Virant, associate director of the Washington Center for Real Estate Research at the University of Washington, predicted that house values in Washington would rise by 1% to 2% in 2024. Pricier housing markets like Seattle and Bellevue could see growth as high as 3%, in Virant’s opinion.

Matthew Gardner, former chief economist for the Seattle-based Windermere real estate company, predicted that the average price for a single-family home in King County, Washington would rise by about 3% in 2024.

If we compile and average all of these forecasts, the general consensus is that the Seattle area could post a price gain of around 2.5% – 3.5% this year. (View disclaimers below.)

About the Seattle-Tacoma-Bellevue Metro Area

This housing market forecast covers the Seattle-Tacoma-Bellevue metro area as a whole, as well as individual cities. Here are some things you should know about the area if you’re planning to buy a home in 2024 or relocate in from elsewhere. 

Map of the Seattle Tacoma metro area

Sometimes referred to as the “Puget Sound region,” the Seattle-Tacoma-Bellevue metropolitan statistical area is a major urban complex within the state of Washington.

This metro includes the state’s three most populous counties—King, Pierce, and Snohomish—and is home to over 4 million residents as of the latest census. The largest and most well-known city is Seattle, followed by Tacoma and Bellevue as other major hubs.

 Geography and Climate

Western Washington is defined by its diverse landscape, including the saltwater inlets of Puget Sound, the Cascade Mountain range to the east, and the Olympic Mountains to the west. The Seattle metropolitan area is situated within this varied terrain.

The Puget Sound region is known for its temperate, often rainy climate with mild summers and cool, wet winters. Temperatures rarely drop below freezing in the winter. The area experiences a significant amount of precipitation throughout the year, with the majority falling during the fall and winter months.

The proximity to the Pacific Ocean influences the climate, moderating temperatures and contributing to the frequent rainfall and cloudy days.

Economy and Employment

The Seattle area is a globally renowned technology center. Industry giants like Microsoft and Amazon have their headquarters here, along with many startups and other tech-focused companies.

Aerospace (Boeing), biotechnology, healthcare, and maritime trade are also significant economic drivers in the region. The metro area consistently ranks as a leader in job opportunity and attracts workers from around the country.

Housing and Cost of Living

The Seattle housing market can be fiercely competitive. Home prices and rental costs far exceed the national average. When this report was published, the median home value for the Seattle metro area ($698,000) was more than double the national median price ($343,000).

Home prices can vary significantly depending on location and desirability within the metro area. For example, the current median price in Sammamish, Washington is around $1.4 million, while the median in nearby Tacoma is closer to $460,000. But the two cities are only about 15 miles apart.

According to an analysis by U.S. News & World Report:

“The average salary in Seattle is higher than the national average, but it’s not enough to keep up with the metro area’s cost of living. The area offers a lower value than similarly sized cities when comparing housing costs to median household income.”

The region offers a mix of housing options, including urban high-rises and condos in downtown areas, traditional single-family homes in extensive suburbs, and more rural options in outlying towns.

Lifestyle and Culture

The Seattle metro area caters to outdoor enthusiasts, with access to hiking, camping, skiing, boating, and water sports. The nearby mountains, forests, and waterways provide abundant recreational opportunities.

Seattle boasts a vibrant arts and culture scene with world-class museums, theaters, and a thriving music and independent arts community. The area is synonymous with coffee, and independent coffee shops thrive alongside major chains.

Disclaimer: This report contains real estate market predictions for the Seattle area extending into 2025. Those projections were issued by third parties not associated with the Home Buying Institute (HBI), which makes no claims about future housing conditions.

Brandon Cornett

Brandon Cornett is a veteran real estate market analyst, reporter, and creator of the Home Buying Institute. He has been covering the U.S. real estate market for more than 15 years. About the author