Is the Real Estate Market Heating Up in 2025?

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.

Are you wondering if the real estate market is picking up in 2025? It’s a question on everyone’s mind, and I’m here to break it down for you. At the end of 2024, Snohomish County had 620 homes on the market, which was 27% more than the previous year. On top of that, 80% of those homes stayed on the market for over three weeks. While this might sound concerning, it’s not unusual for the fourth quarter when things naturally slow down. Now, with spring around the corner, we can expect the market to shift, and I’m watching a few key factors to help predict where things are headed.

One thing to watch is the number of homes hitting the market. January typically brings more listings as sellers who waited through the holidays finally decide to put their homes up for sale. I’ll track how much inventory comes on the market weekly and monthly. More inventory means buyers have more options, but sellers must price their homes strategically to stand out.

Another leading indicator I’m going to be looking at is demand. It’s not just about how many homes are listed but how quickly they sell. Are buyers eager to snap up properties, or are homes lingering on the market? Pending sales versus active listings will tell us whether demand is strong or soft. This is one of the best indicators that shows whether our market is heating up or cooling off, so I’ll be sure to have more updates as we get more information.

Interest rates are another major factor to watch. For months, they’ve been stuck between 6.5% and 7%. If rates drop, it could bring more buyers into the market, boosting demand and helping sellers move their properties faster. If rates stay high, it might lead to more homes sitting on the market. Either way, interest rates will play a significant role in shaping the market this year.

If you’re thinking about selling, now is the time to prepare. The spring market could heat up quickly, and timing is everything. If you’re a buyer, keeping an eye on interest rates will help you make informed decisions about what you can afford. Whether you’re buying, selling, or have questions, I’m here to help. Call me at 206-940-4557 or email me at matt@mattstarkrealestate.com