January 2025 Seattle Housing Market Update

Here are the bullet points from the newest press release from the Northwest Multiple Listing Service (data is from the full month of December):

Despite hopes and predictions, the Federal Reserve Bank’s three interest rate cuts in 2024 have not led to reduced mortgage rates or a significant boost in the housing market.
The 30-year mortgage interest rate was actually higher at the end of 2024 (6.85%) than at the end of 2023 (6.61%).
“We may well be experiencing the pains of adjusting to a new normal, with persistent interest rates of 6% or higher.”
Rising rates have been accompanied by a 4.3% increase in home prices over the past year (for the NWMLS as a whole).
Active listings and sales transactions were up by 25% and 19.8%, respectively, in December 2024 compared to the previous year, suggesting that buyers and sellers may be adjusting to higher borrowing costs.
On the supply side, the 3-county Seattle Metro area (King, Pierce, and Snohomish counties) had about 22% more active listings to end the year than there were at the end of 2023. That could give buyers more options as they start their house hunt in Q1, and could help keep price growth in check.

To read the full press release, click here.