Realogics Sotheby's International Realty · Annual Reports

Seattle & Eastside Annual Real Estate Market Reports

Washington's luxury real estate market is shaped by forces far larger than interest rates. The 2025 Realogics Sotheby's Annual Market Report delivers the macro data — King County price trajectories, mortgage rate forecasts, legislative shifts, and generational wealth transfers — that serious buyers and sellers need to make informed decisions in today's Eastside luxury market.

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Source: Realogics Sotheby's International Realty 2025 Annual Market Report. Data reflects 2024 closed transactions. Deemed reliable but not guaranteed.

2025 Report at a Glance · Key Data

What the Numbers Are Telling Us

Source: Realogics Sotheby's International Realty 2025 Annual Market Report · 2024 closed data

All data sourced from the Realogics Sotheby's International Realty 2025 Annual Market Report. Deemed reliable but not guaranteed. Consult a qualified real estate professional for property-specific guidance.

Market Context · Macro Forces

Economic Insights & Market Drivers

Mortgage Rates: Stabilization Is the Strategy

After years of volatility, mortgage rates are forecast to stabilize near 6% by end of 2025. For luxury buyers — many of whom are purchasing with substantial down payments or cash — this isn't purely a financing story. It's a demand story. When rates stabilize, the buyers who have been sitting on the sidelines re-enter the market simultaneously, compressing the window of relative calm that thoughtful buyers can currently exploit.

The Rate Lock Effect: Why Inventory Stays Tight

79% of Washington homeowners are locked into mortgage rates below 5%. This "golden handcuff" dynamic creates a structural ceiling on available inventory that no amount of buyer demand can overcome in the short term. For luxury sellers, this means reduced competition from comparable properties. For buyers, it means patience and preparation — the right property requires moving decisively when it appears.

House Bill 1110: What Zoning Reform Means for Luxury Buyers

Washington's House Bill 1110 mandates middle housing development near transit corridors — allowing duplexes, fourplexes, and townhomes in previously single-family-only zones. For luxury buyers acquiring lots or older homes for redevelopment, understanding your property's zoning classification and its neighbors' development potential is now a critical due diligence step. Some luxury enclaves are minimally affected; others face meaningful neighborhood change over the next decade.

The $90 Trillion Great Wealth Transfer

The largest generational wealth transfer in human history is underway. As Baby Boomers transfer an estimated $90 trillion in assets to Millennials and Gen X over the coming decades, real estate — and specifically luxury real estate in high-growth markets like Bellevue, Mercer Island, and Seattle — is a primary vehicle. This trend is increasing the pool of well-capitalized buyers in Eastside luxury markets and will continue to support price appreciation in the $2M–$10M+ segment for years to come.

Downtown Seattle Condos: Scarcity as a Long-Term Strategy

No new high-rise condominium towers have broken ground in downtown Seattle in over five years. The pipeline that sustained condo supply for much of the 2010s has gone silent, driven by construction costs, permitting complexity, and developer caution. For buyers and investors in Seattle's luxury condo market, this supply constraint is structural — not cyclical — and represents a compelling long-term case for existing high-rise units in well-located towers.

Expert Analysis · Freddy M. Delgadillo, CLHMS®

How Annual Market Data Applies to Luxury Buyers & Sellers on the Eastside

Annual market reports tell you where the market has been. My job is to tell you where it is going — and more importantly, whether a specific property on a specific date is priced correctly for what you are trying to accomplish.

The 9% appreciation King County recorded in 2024 is not uniformly distributed. On Mercer Island, waterfront estate appreciation ran significantly higher. In certain Kirkland neighborhoods, the gain was more modest. In downtown Seattle's luxury condo market — where no new supply has entered in five years — pricing dynamics are entirely distinct from single-family suburban trends. Macro data provides the map; local expertise gives you the terrain.

For buyers: The rate stabilization forecast around 6% and the projected 15% price increase over two years creates a clear calculus. A $3M property purchased today at 6% and worth $3.45M in two years compares favorably to waiting for rates to drop to 5.5% on an asset now priced at $3.35M. The carrying cost of waiting is real.

For sellers: The 79% rate-lock statistic is your most important strategic context. Your competition isn't the broader market — it is the small number of sellers who choose to list despite their favorable existing rate. Properties that are prepared, priced with precision, and marketed at the level buyers in the $2M+ segment expect will capture buyer attention decisively. Sellers who treat luxury buyers like standard market buyers leave significant money on the table.

With 25+ years of Eastside luxury experience, bilingual services in English and Spanish, and active representation across Bellevue, Mercer Island, Kirkland, and Seattle, I provide the cross-market depth that this data demands. I invite you to bring your questions — the annual report is a starting point, not a conclusion.

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Common Questions

Annual Market Report FAQ

What does the 2025 Realogics Sotheby's Annual Market Report cover?

The 2025 report analyzes 2024 full-year closed transaction data across King County and the broader Puget Sound region. It covers single-family and condominium markets, price trends, sales volume, mortgage rate impacts, legislative changes (including House Bill 1110), and demographic forces such as the Great Wealth Transfer. It is the most comprehensive macro-level analysis of the Seattle and Eastside real estate market published annually.

How much did home prices increase in King County in 2024?

According to the 2025 Realogics Sotheby's Annual Market Report, King County home prices rose 9% in 2024 year-over-year. Luxury segments — particularly waterfront and premium neighborhood properties on Mercer Island and Bellevue — saw even higher appreciation in select micro-markets.

What is the home price forecast for Seattle and Eastside in 2025 and 2026?

The report forecasts home sales volume to climb approximately 10% in 2025, and prices are projected to increase 15% cumulatively over the next two years. Mortgage rates are expected to stabilize near 6% by year-end 2025, which historically unlocks pent-up buyer demand without a corresponding surge in new supply.

How does House Bill 1110 affect luxury real estate in Washington State?

House Bill 1110 allows middle housing development — duplexes through sixplexes — in previously single-family-only zones near transit corridors. For luxury buyers, its primary impact is in due diligence: understanding your property's specific zoning designation and the development rights of adjacent parcels is essential before purchasing in affected areas. Some of the Eastside's most prestigious enclaves have significant protections; others are more exposed to density changes over the next decade.

Why is there so little inventory in Seattle and Eastside luxury real estate?

The primary driver of inventory scarcity is the rate lock effect: 79% of Washington homeowners have mortgage rates below 5% and are financially disincentivized to sell and take on a higher-rate loan. This structural constraint — combined with no new high-rise condo construction in downtown Seattle for five years — means supply will remain constrained regardless of demand levels in the near term.

How often is the annual market report updated?

Realogics Sotheby's International Realty publishes the Annual Market Report once per year, typically in early spring, covering the prior full calendar year of closed transactions. The 2025 report covers 2024 data. The 2026 report, which will cover 2025 data, is expected in spring 2026 and will be published on this page upon release.