The majority of homes in Seattle lost value in 2025

Buying a home in Seattle just got a little bit easier, but the facts are a little bit distressing if you're already a Seattle homeowner. 

According to axios.com,
‘Nearly four out of five homes in the Seattle metro area have lost value in the past year, a much higher share than the national average, according to Zillow data. 
The widespread drop in Seattle-area home values may offer some relief to struggling buyers, even as local home prices and mortgage rates remain high.’ 

Is it time to buy your first home? 

The Dream of owning your first home in Seattle has been out of reach for many people. First time home buyers are especially hard hit but new research from Zillow indicates that prices are actually starting to fall, modestly. Zillow claims that their research shows that 78.4% of homes in the Seattle metro area have actually dropped in value. 

However, the drop in value is very modest, approximately 1% From last year. The average home value in the Seattle market hovers at around $750,000, but if the home is located within the Seattle city limits, then the price goes up. 

Part of the reason for this reduction in value overall in the Seattle market is because inventories of homes for sale are going up. Active listings of homes for sale in the market are up approximately 24% over last year. Unfortunately, the number of buyers looking for homes has not increased. 

Seattle is a tough market

With the unemployment figures on the rise in the Seattle market due to the huge tech layoffs, you're not going to see someone who's looking for a job Say to themselves, “I think I need to buy a new home right now”. Based on federal data, unemployment was sitting at about 4.9% in September of this year. That's up about .7% from last year. By comparison, back in 2019, unemployment in the Seattle, Tacoma, Bellevue market came in at about 3%. 

Homeowners in the Seattle market that are concerned with the drop in value should just relax. You're probably sitting on tons of equity, and unless you have to sell your house immediately, its value will probably go up in the next year or two.
53% of U.S. homes lost value in the past year, the most since 2012 - Nov 17, 2025