2025 September Housing Market Update

By Matt Stark

Matt Stark is a top 1% REALTOR® in Seattle with over 19 years of experience. A Seattle native, he began his career in 1999 as an investor before transitioning to full-time real estate.

You’ve probably seen the headlines: The Fed finally made its first rate cut in months. And while the drop was only a quarter of a percent, the impact on mortgage rates has been far more noticeable. Over the past 30 days, average mortgage rates have dropped roughly half a point. That small shift can make a big difference in affordability. Buyers are now recalculating preapprovals and reassessing budgets, and we’re already seeing renewed energy in the market.

If you’re wondering how this will impact the housing market and your buying or selling plans, here’s everything you need to know.

What the numbers show. Inventory has held remarkably steady through September. We started August with approximately 1,600 homes on the market and closed September with 1,634, essentially maintaining a flat number over 60 days. This consistency suggests that, while demand and supply are balancing, we may see a gradual tightening as sellers withdraw or close deals before winter.

As the year winds down, it’s common for some sellers to reduce prices or step back from the market entirely. Others will take advantage of buyer momentum sparked by lower rates to sell before the holidays. That’s why October and November often bring some of the most strategic opportunities: fewer listings, but motivated buyers and sellers.

What it means for sellers. For homeowners considering selling, this is an ideal time to put your property on the market. The recent rate drop has given buyers a reason to act, and with inventory staying manageable, well-priced homes can still move quickly. Those who prepare now could benefit from the mini-surge in activity before seasonal slowdowns kick in.

What it means for buyers. If you’ve been waiting for better affordability, this might be your window. Lower rates not only stretch your budget but also reduce competition from those still waiting for a bigger drop. Many of the homes still on the market are well-maintained and priced to move, meaning you can find strong value heading into fall.

The Seattle market remains balanced but optimistic. With rates trending lower and steady inventory, buyers and sellers both have opportunities as long as they move strategically.

If you have questions about your property, your buying power, or whether to make a move before the end of the year, I’d be happy to help. Reach me anytime at matt@mattstarkrealestate.com, 206-940-4557, or visit searchhomesnw.com. Fall may be known for cooler temperatures, but in Seattle real estate, things are starting to warm up.