Interest Rates Are Down — and Homes Are Selling Again

After a long, quiet summer, the market is moving again. Mortgage rates have dropped nearly three-quarters of a point since late August and buyers have finally noticed. Several weeks after the Fed’s most recent rate cut, activity has generally picked up across Western Washington. Listings are selling, offers are being written and both buyers and sellers are feeling a renewed sense of momentum.

Just this past week, my duplex in Bellingham went under contract and so did my McKees Beach Cottage. That’s not just luck; it’s a clear sign that buyers are paying attention to opportunity. Lower rates have given many the confidence (and affordability) they were waiting for and they’re acting on it.

In addition to those sales, I’ve also helped several buyers secure homes over the past couple of weeks, each time negotiating between 5 - 7% in seller concessions. Those savings can be used toward closing costs, rate buydowns, or repairs, a major advantage for buyers this time of year.

Right now, it’s a great market for buyers. The key difference? With fewer bidding wars and sellers willing to negotiate, buyers have leverage, something we haven’t seen much of in recent years. At the same time, sellers who price their homes correctly and present them well are still attracting strong early offers.

Lower interest rates are breathing new life into the market just as we head into fall, a season that’s often overlooked but full of opportunity. For buyers, it’s a chance to purchase before rates or prices shift again. For sellers, it’s a reminder that presentation, pricing, and timing still matter more than ever.

The takeaway: Momentum has returned to Western Washington real estate. Whether you’re buying your first home, your dream home or an investment property, now is a good time to make a move while conditions remain favorable.

Snohomish County Market Update | October 9, 2025

By Kat Howard | Western WA Real Estate Insights

The Snohomish County real estate market is showing fresh momentum this October, fueled by improving buyer confidence and a welcome dip in interest rates. For the first time in months, the number of homes going under contract is outpacing new listings, signaling that demand is once again on the rise.

Inventory & Market Activity

Last week, 112 new listings hit the market, while 137 homes went pending. Inventory has started to contract and is now at 1.8 months of supply. This continues to lean towards a seller’s market, but buyers have more breathing room than during the peak winter/spring cycle.

How Fast Are Homes Selling?

Properly priced and well-presented homes continue to move swiftly.

29% of listings that hit the market between September 28^th - October 4th went under contract in just seven days.

Expanding the window to two weeks for homes listed September 14^th - 27th, that number jumps to 45%.

While the median days on market for recently sold homes sits at 21, the average has stretched to 35, reflecting slower movement for overpriced or less-prepared properties.

Current Contract Trends

Negotiation dynamics have shifted slightly in favor of buyers, but strong listings still command attention. Of the contracts accepted between October 6^th - October 12th:

21% of sellers received multiple offers

49% included an inspection contingency

81% carried a financing contingency

This balance suggests a healthy, more traditional marketplace where both sides are actively negotiating terms, a stark contrast to the frenzy of winter/spring months.

Sales Outcomes

Over the past 30 days, just 23% of Snohomish County homes sold above asking price.

·       4% sold for 5% or more over list

·       2% exceeded list by 10% or more

·       1% reached 20%+ above list

However, 48% of homes sold below asking, underscoring the importance of strategic pricing. Of those, 10% sold for 5% or more below list and 2% for 10% or more below list. The message is clear, buyers are informed, discerning and quick to pass on overpriced listings.

The Bottom Line

Interest rates have fallen nearly ¾ of a percent since late August and buyers have finally responded. With the Fed signaling more rate cuts ahead, confidence has returned. For several consecutive weeks, more homes have gone pending than have come to market, a promising sign and expected (for typical seasonal real estate market cycles) heading into fall.

The takeaway:

Sellers who price strategically and present their homes beautifully are still attracting strong, early offers.

Buyers are finding opportunities, often without competition and negotiating meaningful concessions.

The Snohomish County market has shifted from summer slowdown to autumn opportunity.

— Kat

As always, thank you for taking the time to read this version of Stats by Kat. Please feel free to reach out. I value your questions and comments! And don’t forget to follow me on Social Media (links are below), as the most up to date information on our real estate market will also be covered in my most recent videos. And check out a variety of playlists on my YouTube Channel.

Tips for Sellers & Buyers

Since I’ve started creating content in 2023, I’ve put together several hundred videos to help Buyers and Sellers navigate our local real estate market. Here are a couple of the more popular Playlists:

Real Estate Tips for Sellers

Real Estate Tips for Buyers

Katherine Howard | Broker
Windermere Real Estate/HLC
13901 NE 175th Street | Suite 100
Woodinville, WA 98072

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