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As we prepare to achieve our goals in the new year, it’s crucial to set ourselves up for success by examining the past before diving into the future, and your real estate goals are no exception. Market data gives you a deeper understanding of past and current market conditions, allowing you to make informed predictions about potential future market decisions. Before looking forward, let’s summarize Seattle’s fourth-quarter market with insights from Realogics Sotheby’s International Realty’s recently released report.
During Q4-2024, buyers searching for their first home, vacation property, dream estate, or investment opportunity in Seattle were motivated to make their moves despite the final months of the year historically being a slower period for the market. In fact, the number of homes sold increased by 29.69% year over year from 916 homes in Q4-2023 to 1,188 homes in Q4-2024. This year-over-year boost in buyer activity meant that demand outpaced supply, creating a seller’s market with just 1.2 months of inventory. However, buyers weren’t pressured to make hasty decisions when choosing their ideal Seattle home as evidenced by the average days on market, which was 36 days. There was price growth in the Seattle market, with a year-over-year increase of 8.15% bringing the median sales price up to $995,000.
Looking ahead, one of the biggest questions many buyers and sellers are wondering is: how will the presidential election affect the market? According to Lawrence Yun, the chief economist of the National Association of REALTORS® (NAR), “We’ve seen after presidential elections—and it doesn’t matter who wins—that there’s usually a slight boost in home sales.” The NAR has predicted that there will be an 11% rise in new home sales in 2025. This is welcome news, especially after low levels of inventory during the earlier part of 2024 served as an obstacle for many interested homebuyers. There is good news for sellers as well: the NAR has also predicted a 2% year-over-year increase in home prices.
Mortgage rates continue to be a major factor that affects when and how buyers and sellers approach their real estate goals. Realogics Sotheby’s International Realty’s mortgage lending partners Movement Mortgage have forecasted that by the end of 2025, the 30-year fixed rate will be 6.4%. Those hoping for a major decrease in rates may be disappointed as they continue to stay above 6%, and experts predict they will stay that way this year. However, those looking to make a real estate move in 2025 should reexamine their budget, explore alternative loan options, and consider refinancing in the future.
Prices, mortgage rates, and inventory levels all remain top of mind for those watching the market closely, but another major piece of news has Seattle residents curious about changes on the horizon: the return of work-from-home employees to city offices. Although Amazon’s recent mandate remains the most noteworthy, many major Seattle- and Eastside-based companies have been slowly transitioning from remote schedules to in-office requirements, creating more traffic into the greater Seattle area. This could also affect the market as more homebuyers search for in-city homes to cut down on their daily commute times.
Before diving into the home search, homebuyers should take stock of their finances, research neighborhoods, create a list of wants and needs in a home, and reach out to a trusted real estate advisor who can guide them from the very beginning of their journey and through the closing. Sellers should prepare to take advantage of the busy spring selling season and perform value-boosting repairs and renovations to their homes now, clean up their landscaping to enhance curb appeal, and research recent sales in the neighborhood, all with the help of an experienced real estate agent.
John Madrid can be reached at 206-498-1880 or john@live206.com to get started on your real estate goals.