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Are We in a Buyer’s Market? What Redfin’s Forecast Means for Snohomish and Skagit Counties


Redfin Forecasts a 1% National Home Price Drop – But What Does That Mean for Washington State?



In a recent On the Market podcast (Ep. 328), Dave Meyer from BiggerPockets sat down with Chen Zhao, Head of Economic Research at Redfin, to discuss Redfin’s revised housing forecast for 2025.


For the first time in years, Redfin predicts a modest 1% decline in U.S. home prices by the end of the year. While that might not sound dramatic, it marks a clear shift: much of the country is now in a buyer’s market.


But before sellers panic - or buyers celebrate - let’s break down what that really means, especially for our local markets here in Snohomish and Skagit Counties.



Key Takeaways from the Podcast


Redfin’s updated 2025 forecast includes:


  • A 1% drop in national home prices by year-end


  • A growing imbalance: 34% more sellers than buyers nationwide


  • Lagging demand due to economic uncertainty and high mortgage rates


  • Condo markets struggling more than single-family homes


  • Flat or declining rents in many U.S. metros


  • Forecast influenced by macroeconomic uncertainty (tariffs, policy changes, mortgage rates)



Despite this, Redfin does not anticipate a major housing crash. Homeowners are sitting on equity, delinquencies remain low, and many would-be sellers are simply opting to wait things out.




What This Means for Snohomish & Skagit County Real Estate



Local Matters More Than National


Here’s the truth: Real estate is hyper-local.


Even if the national market is cooling, your city, ZIP code, or even neighborhood could be performing differently. Within both Snohomish and Skagit Counties, we see a mix of mini-markets—some leaning toward buyers, others holding strong for sellers.



Snohomish County


  • Southern cities (Bothell, Lynnwood, Mill Creek) are seeing price resistance as buyers pull back due to affordability limits.


  • Northern areas (Marysville, Arlington) may hold more appeal due to relative affordability and lifestyle amenities.


  • Condo listings in places like Everett are sitting longer and facing price reductions more often than single-family homes.



Skagit County


  • Mount Vernon and Burlington remain active, but sellers are negotiating more than they did in early 2024.


  • Anacortes and La Conner show slower activity due to price points and second-home dynamics, but still have strong long-term demand.


  • New listings that are well-priced and move-in ready are still moving, though not as quickly as they did during the pandemic boom.



Pricing, Inventory, and DOM Trends


  • Expect more price drops on listings that sit for more than 30 days.


  • Median Days on Market (DOM) is increasing in both counties.


  • Sellers still listing at January 2024 prices may need to adjust expectations to get traction.




What Buyers and Sellers Should Do Now



For Homeowners/Sellers:


  • Be strategic with pricing – don’t chase yesterday’s market.


  • Prep your home well – buyers still value turn-key properties.


  • If your home sits too long, consider a price reduction early or offer non-price concessions.



For Buyers:


  • Focus on neighborhoods where DOM is increasing and price drops are more common.


  • You may have more negotiation power, especially for condos or homes needing updates.


  • Watch list-to-sale price ratios and average DOM in your area of interest.




Looking Ahead



While Redfin’s national forecast suggests a cooler second half of 2025, don’t assume that applies to every market equally.


In Snohomish and Skagit Counties, we’ll likely see a patchwork of market conditions, with some areas softening slightly while others stay competitive. Understanding the micro-market is key.


Working with a local expert who knows how each ZIP code is performing - not just the county or state averages - can make all the difference.



Final Thought


The U.S. may be leaning toward a buyer’s market, but in real estate, “location, location, location” still rules.


Before making your next move - buying, selling, or investing - make sure you have hyper-local data and a trusted advisor to guide your decisions.



Need hyper-local guidance for your neighborhood or property?


Get in Touch for a custom market analysis or home sale prep plan.


Original Source:

“On the Market Ep. 328” with Dave Meyer and Chen Zhao, Head of Economic Research at Redfin.


As always, thanks for reading (and sharing)!


Best,

Joe

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