Seattle–Tacoma–Bellevue: High Prices, Growing Inventory

LBC Capital offers personalized mortgage solutions across Washington, helping clients navigate market trends in competitive regions like Seattle and Bellevue, as well as affordable areas like Spokane. Understanding local housing dynamics is essential for securing the best financing in today’s evolving market.

Market Conditions Are Shifting

The Seattle–Tacoma–Bellevue metro remains one of the most expensive in the country. As of mid-2025, the median home price in King County is about $907,000—more than double the national average of $403,700. While home values are still rising, the pace has slowed compared to prior years. More listings are coming to market, giving buyers a bit more leverage than before.

In King County, active listings rose 71% year-over-year by April 2025. Seattle’s inventory increased 47%, while the Eastside—including Bellevue—saw a 138% jump. With supply reaching approximately 2.6 months by July, the market is inching closer to balance, though still favoring sellers slightly.

Buyer Demand Remains Strong

Despite rising supply, buyer activity has not cooled significantly. Around 44.3% of homes in the metro went pending within 30 days in June 2025, signaling sustained demand. Homes are still selling quickly, typically within 23 days, and the average sale price is 100.8% of the list price. This means buyers are still competing, although the pressure has eased compared to the height of the market frenzy.

LBC Capital ensures clients have a strategic advantage when competing in fast-paced markets like Seattle. We help you get fully pre-approved and position your offer to stand out.

Mortgage Rate Trends in the Puget Sound Region

Mortgage rates continue to influence buying power. In July 2025, the 30-year fixed mortgage rate averaged around 6.67%. Earlier in the year, it hovered closer to 6.9%. Most forecasts predict a slow decline through the end of the year, with rates expected to settle between 6.0% and 6.3% by December.

While not as low as rates seen in 2020–2021, this range provides more stability for homebuyers. LBC Capital helps clients lock in favorable rates with flexible options tailored to their financial goals.

Bellevue and Tacoma: Distinct Local Dynamics

Bellevue: Premium Market, Slower Growth

Bellevue remains one of the most sought-after—and expensive—markets in Washington. Median home prices here approach $800,000, driven by high demand and limited land availability. However, like Seattle, price appreciation has moderated.

Buyers in Bellevue face fewer bidding wars than before but should still be prepared to act quickly. Homes in good condition and priced appropriately continue to attract multiple offers. LBC Capital works closely with buyers to structure financing that supports strong, competitive offers in premium markets like Bellevue.

Tacoma: Fast Sales and Low Supply

Tacoma offers a more accessible price point compared to Seattle and Bellevue, but it’s just as competitive. Inventory levels remain extremely low—just about one month of supply as of early 2025. Homes in Tacoma often sell in under 20 days, sometimes within a week.

This demand is driven by buyers who have been priced out of Seattle and are looking for value in nearby cities. LBC Capital provides clear guidance to Tacoma buyers, helping them secure financing quickly and make confident, timely decisions.

Spokane: Steady Growth and Greater Affordability

Market Resilience and Moderate Appreciation

Spokane’s housing market continues to attract attention for its balance of affordability and growth potential. As of early 2025, the median home price in Spokane County is close to $400,000. After a mild correction in 2022, the market rebounded with five straight months of price increases by January 2025.

Unlike the Puget Sound region, Spokane’s appreciation is steadier and less volatile. This makes it attractive for first-time buyers, families, and long-term investors.

Inventory and Buyer Competition

Inventory in Spokane is tighter than historical norms, but still more manageable than Seattle or Tacoma. While buyer competition is picking up, Spokane does not see the same aggressive bidding wars common in western Washington. This makes it easier for buyers to negotiate and include contingencies in their offers.

LBC Capital supports Spokane-area buyers with customized loan options that prioritize both affordability and flexibility. Whether you’re purchasing your first home or investing in a rental property, we ensure your mortgage fits your long-term plan.

Spokane Mortgage Rates and Economic Outlook

Mortgage rates in Spokane mirror those in the rest of the state. Projections from Fannie Mae, MBA, and Freddie Mac suggest that rates will trend downward into the high-5% to low-6% range by year-end. Estimates place rates between 5.9% and 6.4% across Washington.

With inflation still a concern and bond markets unpredictable, rates may remain above historical norms. However, even modest rate drops in Spokane can significantly boost affordability due to lower home prices.

Comparing Markets: Key Takeaways

Affordability Differences

Spokane clearly outpaces Seattle, Bellevue, and Tacoma when it comes to affordability. With median prices near $400,000, Spokane offers a much lower barrier to entry for buyers. In contrast, Seattle and Bellevue require significantly larger down payments and higher incomes to qualify.

LBC Capital helps buyers understand the full cost of homeownership in each market. We provide accurate payment estimates, factoring in taxes, insurance, and HOA fees, so you can plan with confidence.

Competitive Pressure

While buyer demand remains strong across all regions, competition is fiercest in Tacoma and select Seattle neighborhoods. Spokane offers more breathing room, making it ideal for buyers who prefer a less aggressive market.

That said, all regions require quick decision-making and preparation. LBC Capital ensures you’re pre-approved and ready to move forward when the right opportunity appears.

Rate Sensitivity and Strategy

High prices in the Puget Sound region amplify the impact of rising mortgage rates. A 1% rate increase can add hundreds of dollars to monthly payments on a Seattle home. In Spokane, the impact is smaller, allowing more flexibility when timing your purchase.

For many buyers, purchasing now and refinancing later may be a strategic choice. LBC Capital monitors rate trends and provides refinancing support, helping you lower your payments when the timing is right.

The Bottom Line: Regional Choice Matters

Seattle–Tacoma–Bellevue is slowly transitioning from a red-hot seller’s market to a more balanced environment. Rising inventory and slower price growth are giving buyers better opportunities, though affordability remains a challenge due to high property values.

Spokane, in contrast, offers steady appreciation, lower prices, and less competition—making it an excellent option for first-time buyers and investors seeking long-term value.

Regardless of location, mortgage rates will remain a key factor in 2025. Buyers should be proactive, get fully pre-approved, and work with a mortgage expert who understands regional market trends.

LBC Capital is here to help you navigate Washington’s real estate landscape with confidence. Whether you’re purchasing in Bellevue, refinancing in Tacoma, or investing in Spokane, we provide the guidance, loan options, and competitive rates to meet your goals.