2025 July 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.

Why are so many homes in Seattle still sitting on the market, even in the middle of summer? The numbers tell the story. Inventory jumped nearly 10% in July alone, which means more homes are listed than we’ve seen in over a year. That shift is starting to reshape how quickly homes sell and how they need to be priced to move. If you’re planning to buy or sell soon, this matters.

• Active listings. We started July with just over 14,000 active listings. By the end of the month, that number had risen to more than 16,000. That increase pushed Seattle’s housing supply to 2.4 months, up from 1.7 months this time last year. This kind of growth gives buyers more leverage. It also forces sellers to rethink their pricing and timing strategies.

• Days on market and price reductions. Right now, about 65% of listings are on the market for more than three weeks. That’s a clear sign that demand isn’t keeping up with new supply. And the market is responding: every week, between 11% and 15% of active listings are seeing price reductions. Homes that don’t come on the market at a competitive price are often the ones that get stuck. It’s not just about price, though it’s also about knowing where the market is headed.

• Average sale price. Despite these shifts, prices are still holding. Year-to-date, the average sale price is up 1.8%. That’s a small but meaningful increase, and it shows that homes priced right from the beginning are still selling.

What I’m keeping a close eye on now is when inventory will peak. Last year, it happened in early August. If we follow the same pattern, we’ll start to see the number of new listings slow down soon, which could make it easier for sellers again.

So, what should you do? If you’re a buyer, this is a great moment to take advantage of more options and greater flexibility. If you’re selling, get your pricing right the first time and be prepared for longer timelines. The right plan still makes all the difference.

If you’d like to talk through what this means for your specific neighborhood or situation, I’d be happy to help. Call or text me at (206) 555-1234 or email matt@windermere.com to schedule a call. I look forward to hearing from you!