Seattle’s housing market is sending mixed signals: inventory is rising, yet prices remain firm. The explanation is that the market has divided into distinct price tiers, each behaving differently. The experience a buyer or seller faces depends almost entirely on the price range.
Gina Guajardo, broker and founder of Avanza Real Estate Team at eXp Realty in Seattle, sees this divide play out weekly. Homes priced under $1 million are still selling quickly, often with multiple offers. Above that threshold, the pace slows considerably, and above $2 million, sellers are making real concessions.
The Market by Price Tier
Seattle’s housing market is functioning as three separate markets stacked on top of each other.
Under $1 million, homes move fast. Well-priced listings attract multiple buyers and rarely sit on the market. Buyers in this range still need to be prepared and decisive.
Between $1 million and $2 million, the pace has moderated. Guajardo says most homes in this range sell within three weeks – still relatively brisk, but far from the frenzy of recent years.
Above $2 million, the market has genuinely cooled. Homes linger longer, price reductions are common, and, especially in the $4 to $5 million range, sellers are adjusting expectations significantly.
Both things people have heard, rising inventory and holding prices, are true. They apply to different tiers.
Why Buyers Are Moving Carefully
Today’s buyers are neither panicking nor rushing in. Guajardo describes the prevailing mood as “hopefully cautious.” Mortgage rates sit well above where they were three or four years ago, and buyers feel that difference even if current rates are reasonable by historical standards.
Still, life circumstances continue to drive decisions. People getting married, having children, or relocating for work are buying the best home they can afford now and planning to refinance if rates drop later. “Life happens,” Guajardo says. It is a practical approach: buy based on today’s reality while leaving room to benefit from future improvements.
What Sellers Need to Hear
Many sellers remain mentally anchored to the pandemic-era market, when homes sold in days and bidding wars were routine. That period is over, and the sellers struggling most are those who haven’t accepted the change.
Guajardo notes that once sellers see clear data on current pricing and market conditions, they adjust. “Most sellers right now are still in the mindset of selling fast, but they are getting hit with reality,” she says. The information gap, not stubbornness, is usually the problem.
The biggest deal-killer right now is inspections. Buyers are no longer waiving them, and when an inspector finds a problem, it can quickly derail a transaction. Guajardo’s advice is direct: spend $500 or $600 on a pre-inspection before listing. A problem that costs $1,000 to fix will feel like $5,000 to a nervous buyer who discovers it during due diligence.
One more factor working against some sellers: today’s younger buyers want move-in-ready homes. Fewer are willing to take on renovation projects, which means properties that show well and are priced honestly move fastest.
What to Do Right Now
For buyers: Well-priced homes under $1 million still attract competition, so preparation matters; get pre-approved before touring seriously. In higher price ranges, there is more room to negotiate. Ask about seller concessions, credits toward closing costs, or rate buydowns.
For sellers: Price based on what comparable homes are selling for today, not what a neighbor received in 2021. Invest in a pre-inspection to eliminate surprises. Stage and photograph the home carefully; presentation carries more weight now that buyers have options and time to compare.
One Factor Worth Watching
Seattle’s economy runs heavily on the tech sector, and ongoing layoffs represent a wildcard that could reshape the market’s balance. If more tech workers need to sell, inventory could rise further, particularly in the mid- to upper-price ranges where those homeowners tend to concentrate. That would give buyers additional leverage in tiers that have already softened.
Guajardo remains optimistic about the city’s long-term position. Seattle’s natural setting, highly educated workforce, and quality of life continue to attract residents. But in the near term, the tech employment picture is worth monitoring for anyone making a buying or selling decision in 2025.
The takeaway: Seattle is not a broken market. It is a segmented one. Knowing which tier applies, and pricing or offering accordingly, is the difference between a smooth transaction and a prolonged one.
About the Expert: Gina Guajardo is a broker and founder of the Avanza Real Estate Team at eXp Realty in Seattle, Washington.
This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.
