Market Forecast for 2025: Insights for Puget Sound Area

As a new real estate agent entering the Puget Sound Market, understanding the 2025 market forecast will be important for your success. The new year opportunities should be centered around transparency, negotiation, and educating consumers about inventory and interest rates using trusted professionals. Real estate agents need to be ready to adapt. Our market saw steady growth in 2024, with increases in new listings and median home prices. Across the entire MLS, new residential listings were up 13.2% by September, reaching 62,918 homes, while the median sales price rose by 5.6% to $660,000 (Entire NWMLS). Many people ask me if the interest rates are a sign of what's to come in 2025. Lender data we obtain daily, weekly, and monthly points to taking action rather than waiting. This cycle is different from the past. In 2008 unemployment was over 10% whereas now it is 4%. In the past, subprime was prevalent and now there is almost none. New construction homes have not flooded the market, but instead down by 40%. Mortgage delinquencies were around 10%, whereas now around 4%.

Key Market Trends in the King, Pierce and Snohomish Region

King County continues to lead with high prices and competitive conditions. The median sales price hit $960,000 in September 2024, a 6.7% increase year-over-year, with a significant 28.3% increase in inventory (KingCounty). Pierce County saw its median price rise by 5% to $567,000, with inventory expanding by 32.7%. This county offers a balance of affordability and growth (PierceCounty). Snohomish County experienced a 5.4% rise in its median home price to $780,000, coupled with a 19.7% increase in inventory(SnohomishCounty).

Transparency Around Agent Compensation

One of the key changes impacting the industry is the increased transparency regarding agent compensation. Starting in 2024, NWMLS made it mandatory for all purchase and sale agreements to clearly disclose how agents are compensated. This shift offers a unique opportunity for agents to have clearer conversations with clients about their value and services. Being upfront and educating clients about how commission structures work will help build trust and credibility.

Increased Negotiation on Repairs and Maintenance

With more homes hitting the market and buyers becoming more selective, inspection contingencies have seen a rise. This trend will likely continue into 2025, giving agents an integral role in negotiating repairs and maintenance. Being skilled at navigating these discussions between buyers and sellers will be key to closing deals.

Inventory and Interest Rates

Despite growing inventory, affordability remains a challenge. Although interest rates dropped slightly from mid-2024 highs, the rates for 30-year fixed mortgages still averaged 6.08% in September 2024—over double the rates of 2021(NWMLS Press Release). As affordability pressures persist, new agents must be prepared to help clients navigate financing options and leverage programs like down payment assistance.

As you step into the Puget Sound Market, 2025 offers a mix of challenges and opportunities. Mastering communication around agent compensation, becoming a skilled negotiator on repairs and contingencies, and staying informed about regional trends will position you for success. A steady market demand sets the stage for a productive year ahead for agents who can adapt and offer valuable guidance to their clients.