Buyer's to the rescue? The Seattle Condo Market Update, July 2025
Welcome to the latest and greatest edition of the Seattle condo market update. As always, to skip right to the data, you can do so by clicking here. For more education, and maybe some entertainment, continue below!
Well, let's start with the bad news.
June of 2025 was not a great month for Seattle condo sales. In fact, the absorption rate registered the lowest level since September of last year and one of the lowest levels of all time. Remember, the absorption rate is essentially the rate at which buyers are absorbing the available inventory.
To be fair, Q3 is the time of year when absorption historically tanks (yes, I know June is still Q2) so to see poor levels this early isn't a great leading indicator for what the next few months might look like. That being said, there could be a savior for the market lurking in the shadows.
Above is the graph charting mortgage purchase applications since the beginning of last year. For a number of consecutive weeks/months, the growth in mortgage purchase applications has reflected YoY double digit growth. And earlier this month topped the highest week for activity since late January 2024. To be fair, 2024 was putrid for purchase applications so while the gains are significant, comparing today's numbers to one of the most dormant times in history isn't exactly something worthy of a parade. Still, it's hope! Imagine what this would look like once rates start consistently trending downward (though it's been 3 years since our industry has been saying that).
Of course, as I've made painfully clear in numerous past reports, location, the number of bedrooms, and the type of condo make huge differences in seeing what's being absorbed by buyers. Avoiding the news headlines and diving deeper into the sub-markets will help expose the real stories with what's going on in our local market.
Onto the stats:
In June 2025 the median sale price for a Seattle condo was $589,000. That is up 7.1% YoY and up from $573,250 the month before. Inventory is up 25.6% YoY, but the months of inventory dropped to 4.6 months from 5 months in June.
Enjoy your summer! Onward
