October 2025 Real Estate Market Update – Edmonds, Lynnwood, Bellevue & Seattle

As we move into fall, the Puget Sound housing market is showing steady growth and renewed balance. Compared to the last two years, both new listings and pending sales have increased across Edmonds, Lynnwood, Bellevue, and Seattle — signaling that buyer confidence is returning while inventory continues to improve.

📊 Key Market Highlights

• Mortgage rates have eased following the Federal Reserve’s September rate cut, now holding in the low to mid-6% range.

• Inventory levels are up year-over-year in every major submarket.

• Pending sales are trending upward, showing consistent buyer activity through September.

• Economists project a continued rate decline into 2026, potentially reaching an average 5.85% for a 30-year fixed loan.

This combination of more listings, stable rates, and sustained demand points toward a balanced and competitive market to close out 2025.

💵 Mortgage Rate Overview

Many buyers are using rate buy-downs, often covered by seller credits, to secure effective rates in the mid-5% range. With rates forecasted to dip further next year, early 2026 could bring another wave of buyer activity across the Puget Sound region.

🏘 Regional Market Data – September 2025

📈 Across all four cities, listings increased 20–30% year-over-year, and pending sales rose roughly 10–15%.

This marks one of the healthiest late-year market rebounds since pre-2020 levels, supported by more balanced pricing and steady buyer demand.

🏠 Market Analysis

While prices remain firm, the rise in listings is creating slightly more negotiating room for buyers — particularly for homes that have been on the market for more than three weeks. Sellers who price accurately and present homes well are still seeing multiple-offer activity in desirable neighborhoods.

In short:

• Buyers are gaining leverage through rate flexibility and more inventory.

• Sellers still benefit from a strong pool of motivated buyers.

• Investors are returning, especially in mid-tier price ranges where rental demand remains high.

The result is a stable, balanced environment heading into Q4 — an encouraging shift from the volatility seen in 2023 and early 2024.

🔮 Outlook for Late 2025 and 2026

If inflation continues its downward trend and rates follow projections, 2026 could usher in a renewed cycle of home buying activity. Expect to see:

• Continued growth in inventory through spring 2026.

• Slight upward pressure on prices in high-demand areas like Edmonds Bowl and North Seattle.

• Stronger move-up buyer activity, as homeowners regain confidence in selling and buying within the same market.

For now, steady conditions and improving affordability make fall 2025 one of the most strategic entry points for buyers we’ve seen in years.

📈 Want to Know What Your Home Is Worth?

If you’d like a personalized market analysis tailored to your neighborhood, I’d be happy to provide a complimentary equity review — no obligations, just clear data on how your property fits into the current market.