Market Update — August 2025
We firmly believe timely and relevant data is key to making good decisions. To this end, we are committed to providing our community and clients with actionable data and insights about the local real estate market.
Local real estate market
With the data from July 2025 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).
Median price: The chart below shows the latest median sales prices of homes over the past 5 years in the Greater Seattle area over the past three years:
Homes sold: 6,867 homes were sold in July 2025. The median price of $650,000 which represents no change YOY. This total sale volume translates to a dollar value of about $5.7B.
New construction: 691 new construction homes were sold in July 2025. The median sale price of new construction homes was $749,950.
Months of inventory: Given the current quantity of supply, it’ll take 2.03 months for every listed home to sell. To put this number in context, note that the months of inventory for a balanced market is considered to be 4 to 6 months. The counties with the lowest months of inventory in July 2025 were Kitsap (2.29), Snohomish (2.32), Thurston (2.49), Pierce (2.60), and King (2.76). This data point indicates the persistent shortage of supply relative to demand in the area.
New listings: 10,418 new listings were added to the NWMLS database in July 2025 representing a increase of 12.25% compared to July 2024.
Mortgage rates: This month the Freddie Mac rate shows no major month-over-month change.
Primary Mortgage Market Survey — Average 30-Year Fixed Mortgage Rates over the past 5 years (Source: Freddie Mac)
Broader U.S. economy
Fed Holds Rates Steady: For the fifth straight meeting, the Federal Reserve kept its benchmark interest rate, the Federal Funds Rate, unchanged at 4.25% to 4.5%. This pause, in effect since January, was widely expected as the Fed continues to weigh concerns about both inflation and the job market. Notably, two Fed governors supported a small rate cut, the first time since 1993 that more than one governor dissented from the majority vote.
Inflation Slightly Higher Than Forecasted: The latest Personal Consumption Expenditures (PCE) report, a key inflation gauge, showed prices rose 0.3% in June, bringing the annual rate to 2.6%. Both numbers came in slightly above expectations. More importantly, Core PCE, which excludes food and energy and is the Fed’s preferred inflation measure, also rose 0.3% in June. On a yearly basis, it now stands at 2.8%, just above the 2.7% forecast.
