King County Market Update February 2025 vs. 2024

The real estate market in King County, WA has experienced significant changes over the past year, and as we move through 2025, it's essential to examine how the market has evolved compared to 2024. This blog will provide a comprehensive analysis of the year-to-date (YTD) data for both years, highlighting key trends and factors that have influenced the market.

In 2024, King County's real estate market was characterized by a robust demand for housing, driven by a combination of low mortgage rates and a strong local economy. The median home price in 2024 saw an impressive increase of 8% from the previous year, reaching $850,000. This surge in prices was largely due to limited housing inventory and an influx of buyers looking to capitalize on favorable borrowing conditions.

Fast forward to 2025, and the market dynamics have shifted. While demand remains strong, there are notable differences in the YTD data compared to 2024. One of the most significant changes is the stabilization of home prices. As of mid-2025, the median home price in King County has seen a modest increase of 3%, bringing it to $875,000. This slower rate of appreciation suggests that the market is beginning to balance out after several years of rapid growth.

Several factors have contributed to this stabilization. Firstly, mortgage rates have gradually increased from their historic lows in 2024. While still relatively low by historical standards, the slight uptick in rates has tempered some of the urgency among buyers. Additionally, new housing developments have started to come online, increasing inventory levels and providing more options for prospective homeowners.

Another noteworthy trend in 2025 is the shift in buyer preferences. The pandemic-induced desire for larger homes with ample outdoor space has persisted into this year. However, there is also a growing interest in urban living once again as remote work policies become more flexible and people seek proximity to amenities and cultural attractions. This dual demand for suburban tranquility and urban convenience has led to diverse opportunities within King County's real estate market.

The rental market in King County has also seen changes between 2024 and 2025. In 2024, rental prices were on an upward trajectory due to high demand and limited supply. However, as more rental units have been completed and entered the market in 2025, rental price growth has moderated. This increase in supply has provided some relief for renters who faced steep competition and rising costs last year.

Inventory levels have been a critical factor influencing both sales and rental markets. In 2024, inventory was at historic lows, leading to fierce competition among buyers and driving up prices. In contrast, 2025 has seen a gradual improvement in inventory levels as new construction projects are completed and more homeowners decide to list their properties amidst stabilizing prices.

Looking ahead, King County's real estate market is expected to continue its path toward equilibrium. The combination of increased inventory, higher mortgage rates, and evolving buyer preferences will likely result in a more balanced market where price growth is moderate but sustainable.

In summary, comparing King County's real estate market YTD data for 2025 versus 2024 reveals a transition from rapid price appreciation driven by high demand and low inventory to a more stabilized environment with increased supply and tempered price growth. As we move forward through 2025, understanding these trends will be crucial for buyers, sellers, investors, and renters navigating this dynamic market landscape.

Stay tuned for further updates as we continue to monitor how these trends evolve throughout the remainder of the year!