Team Skally | Market Update

Team Skally Forecasts More Balanced Market Conditions

With persistent low inventory levels, we expect the seller’s advantage to continue in 2025. However, signs of a more balanced market are upon us. Our latest prediction is the result of our analysis of key Eastside market statistics. Here are three key findings:

First, the median sold price in January was up 17% over last year at $1.709M. This is the highest level since April 2022. While prices will continue to appreciate as we get into Spring, affordability is going to price many prospective buyers out of the market. As demand wanes over time, pricing should stabilize.

Another factor is interest rates. While buyers have become more comfortable with the “new normal” (7% rates), the recent news of hotter-than-expected inflation will likely curb anticipated rate cuts in 2025. Elevated rates will continue and so reduced buying power coupled with higher price points will create a double whammy for the buyer pool.

Finally, inventory levels are on the rise. In January we experienced 1.5 months of inventory, the highest January since 2019. Although 1.5 months of inventory still indicates a seller’s advantage, it’s a 63% increase over last year’s inventory level. With new listings on the rise (+61% over last January), buyers will have more choices. With more choices and a shrinking buyer pool, there will likely be price pressure creating a more balanced market for 2025. 

What does this mean for Sellers? It’s super important for your home to be prepared and staged for your market debut. Pricing “right” will be critically important to selling your home timely and for today’s top dollar.

And what does this mean for Buyers? Look for those diamonds in the rough. As days on the market increase, the likelihood of getting a good value increases considerably. Also, be sure you’re thinking long-term. Homes are one of the most reliable investments and create invaluable lifestyle benefits.  

Best,

Matt & Christina

Matt & Christina are Team Skally, top real estate agents in the Seattle Metro with expertise in luxury homes on the Eastside including Bellevue, Newcastle, Mercer Island, Renton and Issaquah. Their client testimonials say it all - they deliver exceptional service and record-breaking results. Recognized as top agents on social media by Property Sparks, Diamond Award winners for best client service, Nextdoor’s Neighborhood Faves and regularly featured in online and print publications including Greet - Newcastle & Newport Hills Magazine. In addition to serving clients, Matt and Christina love family time with their two boys and two Goldendoodles as well as volunteering in the community.