The Washington housing market in February 2025 presents a complex landscape characterized by rising prices and shifting sales dynamics. The Median Sales Price has increased to $629,200, marking a 4.0% year-over-year (YoY) growth. This upward trend in sales prices is mirrored by the Median List Price, which stands at $670,100, reflecting a 3.3% YoY increase. These figures suggest a robust demand for housing, despite some underlying challenges in the market.

Price Per Square Foot has also seen an upward trajectory, with the median Price Per Square Foot reaching $379, a 3.7% increase from the previous year. The Median List Price per square foot has risen even more significantly, up by 5.4% YoY to $392. This indicates that sellers are optimistic about the market's ability to absorb higher prices, although the gap between list and sales prices suggests some negotiation room remains.

In terms of sales activity, the number of Homes Sold has seen a modest increase of 0.7% YoY, totaling 5,563 units. However, Pending Sales have decreased by 6.7% YoY, indicating a potential slowdown in future transactions. New Listings have also declined by 9.1% YoY, with 6,935 new properties entering the market. This reduction in New Listings, coupled with a 15.4% YoY increase in inventory to 12,341 units, suggests a shift towards a more balanced market, with buyers having more options to choose from.

The Months of Supply, a critical indicator of market balance, has risen significantly by 30.0% YoY to 2.20 months. This increase suggests that the market is moving away from the extreme seller's market conditions seen in previous years, providing buyers with more leverage in negotiations. The Median Days on Market have increased by 4.0% YoY to 35 days, further indicating a cooling in the pace of sales.

The average sale to list ratio remains steady at 100.0%, with no significant change from the previous year. However, the percentage of Homes Sold above list price has decreased slightly by 1.4% YoY to 29.4%, reflecting a slight easing in competitive bidding scenarios. Price Drops have become more common, with a 3.1% YoY increase to 23.6%, suggesting that sellers are adjusting expectations to align with market realities.

Finally, the percentage of homes going off the market within two weeks has decreased by 3.7% YoY to 50.1%, indicating that properties are taking longer to sell compared to the previous year. This trend, combined with the other indicators, suggests a market that is gradually stabilizing after a period of rapid growth and intense competition.