March 2025 Market Update
February 2025 followed the January trend of higher pricing and more transaction. While February was a shorter month, marked by wintery weather (vs. the mild January) and many folks taking mid-month vacations, the market started to warm up. Pending numbers grew and Days on Market trended down indicating a more active market.
Pricing historically takes off at the beginning of the year. Lower inventory and higher demand can lead to this market surge. January and February of this year followed previous year trends.
It is more typical to see escalating offers this time of year. While not as crazy as 2022 (111% List Price/Sales Price Ratio), February did start to see more competitive situations with 103% LP/SP ratios. Approximately 32 of the 80 sold properties received higher than asking prices. These are more than likely January listings finally closing but there were some February ones as well. We are seeing some loan closes in about 2 weeks, so pretty quick turnarounds. Many buyers are using a quicker closing time in their offer presentations.
February Closed Sales were up to 80 from 44 in January and about the same as the year before (76). Listings are typically tight until later in the spring. If you are a buyer in this market you know what I’m talking about. If you take the 62 Closed Sales in February (of 80 total), those homes received 110.7% LP/SP ratio. More competitive for resale homes.
Inventory numbers should starting building as the weather gets better and the Spring Market is fully upon us. Both West Seattle and Seattle saw a significant bounce from a year ago (up 30+%). It will be interesting to watch if this trend continues and what kind of inventory is it. Will the inventory be New Construction (NC) or Previously Owned? Many Previous Owned homes have been locked-in to their lower interest rates. West Seattle has 40 NC homes vs. 77 Previously owned of homes for sale at the end of the month. Interestingly, 24 of the 106 Pending Homes in West Seattle were NC homes, so about 25% of all transactions.
Seattle Metro saw gains in price (up to 942k) , inventory (777) and pending sales (444). The inventory number is bigger than it was last year. 505 of that 777 were previously owned homes. This will be something to watch over the next couple of months. Is it owners finally selling or are the strategically listing earlier in the year in order to capitalize on early year market conditions (more seller leverage).
March is already upon us. The weather feels like it is ‘in like a lamb’ but the market definitely feels like it’s a ‘lion’. We will see if it can maintain in these uneasy economic times (tariff rollercoaster, layoffs, wars).