Snohomish County Real Estate Market Update: Trends and Predictions for 2025

The Snohomish County real estate market is entering 2025 with momentum and complexity. While demand remains strong, new trends in pricing, inventory, buyer behavior, and financing are shaping the outlook for buyers, sellers, and investors alike. Grasping these factors is crucial for making well-informed real estate choices in Snohomish County, Washington State.

This comprehensive update explores what’s driving the current market, where it might be headed, and what you need to know if you’re looking for homes for sale Snohomish County or aiming to sell in 2025.

Home Prices Keep Climbing

Home prices in Snohomish County continue their upward trend. As of early 2025, the median sale price hit $747,000, a 6.7% increase from the same time last year. The average sale price is even higher, reaching $803,683. This isn’t just a short-term blip. It reflects a longer pattern of consistent demand for housing in the region.

Factors pushing prices up include limited land availability, a solid local economy, proximity to Seattle, and continued population growth. New residents moving in for work, especially in the tech and aerospace industries, are keeping pressure on the housing market.

This ongoing appreciation means homeowners are gaining equity, but it also means that affordability is becoming a bigger concern.

Inventory: Up, But Still Tight

Inventory levels have seen some growth, but they’re still not where they need to be to meet buyer demand. In February 2025, active listings rose to 947 homes — a 62% jump from the same month in 2024. On paper, this seems like a significant improvement.

However, in practice, the months of inventory available still hover around 1.4. In real estate terms, that’s a strong seller’s market. To put it in perspective, a market considered balanced usually maintains an inventory of available properties spanning four to six months.

What’s driving this dynamic? For one, many homeowners are reluctant to sell because they’re locked into low interest rates from prior years. That reduces turnover and limits supply. On the other hand, builders are adding new homes, but not fast enough to bridge the gap.

If you're searching for homes for sale Snohomish County, this environment means you'll likely face competition, especially for well-priced properties in desirable neighborhoods.

Buyers: Cautious but Present

Even with rising inventory, buyer demand has shown signs of caution. The number of homes under contract for sale saw a decrease of approximately 5% in February 2025 when compared to the same period the previous year. While this isn’t a huge decline, it does signal some hesitancy in the market.

Interest rates are a big part of that equation. At the start of 2025, average mortgage rates were sitting around 7%. For many would-be buyers, this changes the math. Elevated interest rates have the potential to increase monthly mortgage payments by several hundred dollars.

That said, many buyers remain motivated, particularly those with strong credit or substantial down payments. Millennial families and remote workers continue to make up a large segment of the buyer pool. Their priorities — space, schools, and lifestyle — align well with what real estate Snohomish County WA has to offer.

Affordability: An Ongoing Struggle

Affordability is one of the biggest challenges in the Snohomish County housing market. The median listing price is now hovering around $758,000. With mortgage rates above 7%, monthly payments for new buyers are significantly higher than they were just a few years ago.

Many local workers, including teachers, healthcare workers, and service employees, are finding it harder to buy in the communities where they work. This has led to increased demand for rentals and a push toward smaller homes or alternative ownership models.

Some buyers are turning to condos and townhomes as more affordable entry points. These units are often newer and come with lower price tags, making them a viable option in a competitive market.

Sellers: Still in Control, For Now

Sellers remain in a strong position, thanks to low inventory and ongoing buyer demand. Homes in good condition and priced appropriately continue to sell quickly, often with multiple offers.

Nevertheless, the current market activity does not reflect the intense pace observed in 2021 or the early part of 2022. Today’s buyers are more price-sensitive, and homes that are overpriced or poorly presented tend to sit longer on the market.

Individuals considering putting their properties on the market will find 2025 to still present advantageous conditions. That said, working with a knowledgeable local agent is more important than ever. Pricing strategy, staging, and timing can make a significant difference in the final outcome.

Trends to Watch in 2025

Several trends are likely to shape the direction of the Snohomish County real estate market as the year progresses:

1. Continued Price Growth (at a Slower Pace)

   • Home prices are expected to keep rising, though not as steeply as in recent years. Supply remains low, and demand is steady, creating a floor for prices.

2. Shift to Smaller Properties

   • As affordability becomes more of a concern, buyers may increasingly look to townhomes and condos. These units offer a compromise between price and space.

3. More Negotiation Power for Buyers

   • Even though conditions still favor sellers, those looking to buy are starting to see a slight increase in their negotiating power. Expect to see more negotiations around closing costs, repairs, and timelines.

4. Interest Rates Remain a Wild Card

   • Mortgage rates are crucial to market activity. A minor decrease in interest rates might draw more buyers back into the market, whereas a continued increase could lead to a deceleration in sales activity.

5. Continued Demand in Outlying Areas

   • As central areas get more expensive, buyers are spreading out. Towns like Lake Stevens, Marysville, and Monroe are seeing increased interest thanks to relative affordability.

New Construction: A Partial Solution

Builders are ramping up efforts to meet demand. New construction activity has increased, especially in suburban parts of Snohomish County. These homes often come with modern layouts and energy-efficient features, making them attractive to younger buyers.

But new construction isn’t a silver bullet. Rising costs for materials and labor mean these homes aren’t always cheaper. And development timelines can be long, with permitting and infrastructure adding delays.

Still, new builds offer an important piece of the puzzle, especially as existing inventory remains low.

Investor Outlook: A Mixed Bag

For investors, 2025 presents a mixed landscape. On the one hand, rising home prices and tight rental markets make Snohomish County appealing. Rents are strong, and vacancy rates are low, offering solid income potential.

On the other hand, high interest rates and limited inventory make acquisitions more challenging. Investors need to be strategic, focusing on high-demand areas, value-add opportunities, and long-term holds.

Short-term rentals (like Airbnbs) are also under scrutiny in some municipalities, so understanding local regulations is essential.

What This Means for Buyers in 2025

If you’re looking for homes for sale Snohomish County in 2025, here’s what to keep in mind:

• Get Pre-Approved Early: With competition still strong, having financing in place gives you a leg up.

• Be Realistic: Know your budget and stick to it. You may have to compromise on size or location.

• Move Quickly but Thoughtfully: Well-priced homes move fast, but avoid rushing into a deal that doesn’t feel right.

• Work With a Local Agent: They can help you navigate fast-moving listings and find hidden opportunities.

Final Thoughts: Adaptability Is Key

The Snohomish County real estate market in 2025 is evolving. It’s not as overheated as it once was, but it remains competitive and challenging in its own way. Buyers face affordability issues, sellers enjoy strong demand, and investors must tread carefully.

Whether you’re searching for your first home, trading up, or looking to invest, success in real estate Snohomish County WA this year will depend on your ability to adapt to changing conditions. Keep an eye on interest rates, be realistic about prices, and work with professionals who understand the local market.

With the right strategy, 2025 could be a rewarding year for anyone participating in the Snohomish County real estate scene.