Market Statistics for RE Magazine for Q1 2025
Washington’s single-family housing market weakened in the first quarter of 2025, with sales falling compared to both the previous quarter and the same quarter a year earlier. Based on preliminary analysis of data obtained from Multiple Listing Services throughout the state, the first quarter of 2025 had 14,422 transactions of single-family homes, compared with 19,730 during the previous quarter and 18,710 during the first quarter of 2024. These changes represent declines of 26.9% and 22.9%, respectively.
Statewide median prices for the first quarter were only slightly (1.6%) higher than a year earlier and were virtually the same as for the previous quarter. Statewide median prices were $636,200, compared with $641,700 in the previous quarter and $626,100 a year earlier. Median prices varied quite a bit across counties, with several small rural counties having median prices below $300,000, while King County had the highest median at $940,900. Nevertheless, the King County median was down from virtually $1 million in the second quarter of 2024.
High mortgage interest rates continue to put a damper on home sales, with 30-year rates at 6.65% at the end of March 2025, according to Freddie Mac. Mortgage rates were virtually unchanged from a year earlier, when they were 6.79%. These high rates continue to discourage potential sellers with low-rate mortgages from putting their houses on the market while also causing affordability problems for potential buyers needing mortgages. It is expected that mortgage rates will remain high for the foreseeable future.
Given the shifting policies regarding tariffs, it is impossible to accurately estimate their impact on the cost of housing. However, it is expected that they will have significant inflationary effects on the costs of construction materials. At the same time, stricter enforcement of immigration rules will affect the cost of construction labor. Increases in the costs of new construction increase replacement costs and, hence, the values of existing homes as well as new ones. The overall effect of these changes will be higher housing costs and reduced affordability. This comes at a time when the state is struggling with historically low levels of affordability for both first-time and median income buyers.
Steven C. Bourassa, Ph.D.
Director, Washington Center for Real Estate Research
COLLEGE OF BUILT ENVIRONMENTS • UNIVERSITY OF WASHINGTON