February typically brings a quiet real estate market, though this year, the balance between affordability and inventory shaped activity across the Puget Sound. While 30-year mortgage rates dipped slightly from January, rising home prices remained a challenge for buyers, potentially tempering demand. Despite a significant increase in active listings compared to last year, closed sales have not kept pace – and in some areas, they’ve declined year over year. As spring approaches, the interaction between inventory and pricing will be crucial in determining market momentum.
In February, King County’s median residential sold price remained relatively flat year over year, inching up from $914,500 to $915,000. However, prices rose 7% from January, indicating sustained short-term growth. Sellers seem to be preparing for the busier spring season, with active residential listings up 37% compared to last year and 9% from last month. Despite the increase in inventory, closed sales remained flat year over year – suggesting that affordability challenges may still be limiting buyer activity. In King County’s condo market, the median price rose 11% year over year to $612,500 from $550,000. Active condo listings surged 81% compared to the same time last year, following a similar trend as the residential market.
Seattle’s market showed solid price growth in February, with the median residential sold price reaching $965,000 – a 4% increase from last year and a 13% jump from January’s $927,450. Inventory grew as well, with active residential listings climbing 28% year over year and nearly 9% month over month, further boosting buyer choice. However, closed sales declined 7% from last year, hinting that rising prices may be impacting demand despite more inventory. Seattle’s condo market reflected the same trends, with the median sold price rising 12% year over year to $625,000, while active condo listings increased 55% from a year ago.
Across the Eastside, home prices continued their upward trajectory, with February’s median residential sold price hitting $1,685,000 – a 15% increase from $1,470,000 last year. Inventory levels expanded as active residential listings rose 62% year over year and 23% from January, likely due to sellers returning after the winter market slowdown. While closed sales remained essentially flat compared to last year, pending sales dropped 15%, suggesting that affordability may be hindering buyer activity. Eastside condos also saw notable growth, with the median sold price rising 18% from a year prior to $787,475, and active condo listings skyrocketing by 142%, dramatically increasing available options for buyers.
Snohomish County’s median residential sold price rose 5% year over year in February, reaching $785,000, up from $750,990 a year ago. Inventory growth was strong, with active residential listings climbing 66% compared to last year and growing nearly 7% from January, adding more options to the market. However, both pending and closed residential sales declined from 2024, down 10% and 3%, respectively. This suggests that rising prices and persistently high interest rates may be softening demand. Snohomish County’s condo market showed similar patterns, with median sold price increasing 5% from last year to $525,000, while active condo listings grew 64% during the same period.
With inventory continuing to build, competition among sellers is increasing, which could lead to price adjustments that stimulate buyer activity in the months ahead. However, inventory remains below balanced-market levels. Across our four Puget Sound regions, the average months of inventory sits at just 1.3 – still well below the 2 months considered balanced, suggesting that additional opportunities may emerge for buyers facing affordability concerns. Whether that inventory will materialize remains to be seen. In a fast-moving market, having an experienced real estate professional by your side is essential. Connect with a Windermere agent for personalized guidance and real-time market insights.
