May 2025 Real Estate Market Breakdown – What Smart Buyers & Sellers Should Know

If you're still thinking the market is “quiet” this year—think again. May 2025 just revealed one of the largest year-over-year jumps in inventory across Washington since 2018. And while interest rates are hovering near 7%, serious buyers now have more leverage, and sellers need smarter pricing and marketing strategies to stay competitive.

As someone who tracks the market daily, works with strategic buyers, sellers, and investors, let me break down what these numbers really mean for you.

📊 Inventory Is Soaring, But Buyers Are Still Cautious

May 2025 saw 18,310 active listings, the highest we’ve seen since September 2018. That’s up 42.6% from May 2024 and up 26.6% from just last month. Simply put: more homes are hitting the market, fast.

• Clallam (+72.5%)
• Snohomish (+64.1%)
• King (+57.7%)
• Ferry, Grant, and Adams all above 50%

Buyers now have options—but many are slow to act. With rates near 7% and higher construction costs keeping new builds sluggish, some buyers are waiting. But that wait could cost them later.

📅 Sales Activity Is Rising, But Not Fast Enough

While listings jumped, closed sales rose only 9.9% from April and are actually down 3.3% year-over-year.

So what does that mean? Supply is outpacing demand. More inventory, fewer bidding wars, and opportunities for buyers to negotiate.

• Jefferson (+48.4%)
• Cowlitz (+47.8%)
• San Juan (+27.8%)

But overall, the market is telling sellers: price right, market smart, and make your home stand out.

💰 Prices Are Stabilizing—And That’s Good News

The median home price for May 2025 was $654,995, down just 0.8% from May 2024, and slightly up from April ($650,000).

This shows a plateau, not a crash. It also hints at a window for buyers to jump in before prices push back up later this year.

• King County: $865,000
• San Juan: $831,000
• Snohomish: $785,000
• Ferry: $138,000
• Columbia: $256,000
• Pacific: $323,000

🔎 Buyer Engagement Is Picking Up

• Keyboxes accessed 179,613 times, up 16.7% from April and 9.9% YOY
• Scheduled showings up 13.9% from April, and 2.8% YOY

More people are browsing, walking homes, and exploring options—especially with more inventory and price softening.

🎬 Real Buyer Scenario (Fictitious Example): The Deal Everyone Else Missed

Sarah and Marcus had been house hunting for almost a year. Every month, they watched mortgage rates climb higher. They were pre-approved, responsible, and ready to buy—but their budget was shrinking fast. Homes that once felt within reach now required monthly payments they weren’t comfortable with. They were close to hitting pause.

Then, they came across a property that had been overlooked—a well-maintained home in a quiet neighborhood that had been sitting for weeks. Why? Because it wasn’t flashy. But it was solid, well-priced, and had motivated sellers.

With less competition, Sarah and Marcus negotiated a $15,000 seller credit and locked in a price $30,000 below recent comps. That extra budget flexibility gave them room to furnish their home, tackle small renovations, and move in stress-free.

They didn’t just buy a home—they made a smart move in a shifting market.

🚀 What It Means for You

If you’re a buyer:

• You now have more choices, less pressure, and better negotiation room
• Homes are sitting longer—giving you leverage if you act smart

If you’re a seller:

• Inventory is your competition
• Pricing, presentation, and your agent’s marketing plan now matter more than ever

📢 Final Word From the Field

According to Washington Center for Real estate Research (WCRER): Listings grew by nearly 6.5x more than sales last month.

That gap = opportunity. The market is shifting to a strategic advantage zone for buyers with a plan, and sellers with the right advisor.

Need help making a move that works with today’s numbers?

Let’s talk.

Aaron Miriello
Broker and Real Estate Advisor 
www.primenorthwesthomes.com
aaron@primenorthwesthomes.com | 206-999-8875

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