Washington - Real Estate

🏡 2025 Mid-Year Real Estate Market Review: National, Statewide, and Local Insights

As we cross the halfway mark of 2025, it's the perfect time to reflect on the real estate market so far—where it's been, where it's heading, and what buyers and sellers should know going into the second half of the year. From national headlines to our own backyard in Anacortes, Washington, here’s a breakdown of the real estate landscape.

📊 National Real Estate Market Overview – 2025 So Far

The national housing market in 2025 has been defined by stabilization. After several years of volatility—spurred by pandemic-era lows and the dramatic rate hikes that followed—interest rates have finally shown signs of leveling. As of July, 30-year fixed mortgage rates have hovered between 6.25% and 6.5%, offering a bit of breathing room for both buyers and sellers.

Key Trends:

Inventory is rising modestly, but demand is still outpacing supply in most markets.
Home prices have increased about 3-4% year-over-year, a slower, healthier pace than in previous years.
Millennials and Gen Z continue to drive first-time homebuyer activity, often opting for suburban and secondary markets with better affordability.
Investors have pulled back slightly due to tighter margins, but cash buyers remain a strong force in many areas.

🌲 Western Washington Real Estate Snapshot – Mid-Year 2025

Western Washington’s real estate market has shown resilience and adaptability in the first half of 2025. While early concerns about affordability and interest rates lingered, the region has benefited from strong lifestyle appeal, proximity to urban centers, and a steady stream of buyers looking for a balance between work and quality of life.

Greater Seattle & Surrounding Areas:

Seattle, Bellevue, and the Eastside experienced a slight cooling in the spring, particularly in the luxury tier. Tech layoffs in late 2024 softened buyer demand briefly, but the market has since regained stability.
Condos and townhomes have seen renewed interest from first-time buyers priced out of the single-family home market.
South Sound areas like Tacoma, Puyallup, and Olympia continue to attract buyers with relatively more affordable price points and growing infrastructure.

Coastal & Island Communities:

Areas like the San Juan Islands, Whidbey Island, and the Skagit and Whatcom County coastlines remain in high demand for second homes, retirees, and remote workers.
Inventory is tight, and competitively priced homes are often selling within 2–3 weeks.
Waterfront properties and homes with acreage are especially desirable, with buyers willing to pay a premium for privacy, views, and lifestyle access.

Regional Trends to Watch:

Inventory across Western Washington is still below historical norms, but listings are gradually increasing heading into the late summer market.
Home price appreciation across the region has averaged 2–5%, with slower growth than the pandemic boom years but still favoring sellers.
Buyers are more rate-sensitive than ever and are taking a deliberate, calculated approach to offers.

Overall, Western Washington continues to be a sought-after region thanks to its natural beauty, vibrant communities, and access to both outdoor recreation and tech-industry hubs.

⚓ Anacortes, WA & Skagit County – Hyper-Local Insights

Here in Anacortes, the 2025 real estate market has been steady and competitive, particularly for well-maintained properties under $800,000. This picturesque coastal town remains a draw for retirees, boaters, and telecommuters seeking natural beauty, strong community, and a slower pace of life.

Current Local Market Trends:

Inventory remains tight, with limited new construction and a slow trickle of resale homes hitting the market.
Home prices in Anacortes are up about 4% year-over-year, with average days on market around 18–25 days.
Buyers are selective, but strong listings—especially those with water views, updated interiors, or walkability—are still selling quickly, often with multiple offers.
Skagit County as a whole has seen moderate activity, with Mount Vernon and Burlington offering slightly more affordability and inventory flexibility.

With summer in full swing, open houses are bustling, and many buyers are looking to make their move before the school year starts or interest rates shift again.

🔮 What to Watch in the Second Half of 2025

Interest rate decisions from the Fed will be critical. If rates dip even modestly, expect buyer activity to surge.
Seasonal slowdown in Q4 is likely, but inventory may climb slightly, giving patient buyers more choices.
Remote work and lifestyle priorities continue to influence demand in places like Anacortes and beyond.

💬 Final Thoughts

The 2025 real estate market has been balanced—not overly hot, but certainly not cold. Whether you’re buying, selling, or simply keeping an eye on the market, understanding both the broader trends and local nuances is key to making smart real estate decisions.

As always, if you’re curious about your home’s value or considering a move in or around Anacortes, I’d love to help you navigate the market with confidence and clarity.