The Seattle, WA metro area housing market is experiencing a dynamic start to 2025, characterized by a blend of rising inventory and fluctuating prices. The Median Sales Price currently stands at $775,000, reflecting a year-over-year decrease of 1.8%. In contrast, the Median List Price has increased by 5.2% to $815,000, indicating a potential gap between seller expectations and buyer willingness.

Price Per Square Foot metrics further illustrate this trend. The median Price Per Square Foot has risen by 4.8% to $461.75, while the Median List Price per square foot has increased by 5.5% to $495.00. This suggests that while sellers are optimistic about pricing, buyers are exercising caution, possibly due to broader economic factors.

Sales activity in the Seattle metro area shows a positive trajectory. Homes Sold have increased by 6.1% year-over-year, totaling 1,792 units. Pending Sales have also seen a modest rise of 1.4%, reaching 2,409 units. This uptick in sales activity is supported by a significant increase in New Listings, which have surged by 30.6% to 2,961. Consequently, inventory levels have expanded by 47.2% to 3,365, providing buyers with more options in the market.

The Months of Supply, a critical indicator of market balance, has increased by 50.0% to 1.90 months. This suggests a shift towards a more balanced market, although it still leans in favor of sellers. The Median Days on Market have slightly increased by 2.0% to 38 days, indicating that homes are taking marginally longer to sell compared to the previous year.

In terms of pricing dynamics, the average sale to list ratio has seen a slight decline of 0.1%, now at 99.4%. The proportion of Homes Sold above list price has decreased by 1.9% to 22.0%, reflecting a cooling in competitive bidding. Additionally, Price Drops have increased by 5.3%, now affecting 26.0% of listings, suggesting that sellers are adjusting expectations to align with market realities.

Finally, the percentage of homes going Off Market Within Two Weeks remains relatively stable, with a minor decrease of 0.1% to 53.3%. This indicates that while some properties are still moving quickly, the overall pace of the market has moderated slightly.

Overall, the Seattle housing market in early 2025 presents a complex landscape. While inventory and New Listings are on the rise, price adjustments and extended days on market suggest a recalibration between buyer and seller expectations. As the year progresses, market participants will need to navigate these evolving dynamics carefully.