Seattle Sellers Cut Prices 15% as Condo Demand Crashes

Key Takeaways

• Seattle condo prices have dropped by 15% as sellers attempt to attract hesitant buyers.
• Inventory has surged by 55% compared to the previous year, resulting in many unsold properties.
• The market remains uncertain, with conditions possibly worsening in the near future.

Surging Listings and Dropping Prices Disrupt the Seattle Condo Market

Panic is sweeping Seattle’s condo market. Asking prices have plunged 15%, as sellers desperately chase fleeing buyers. A tidal wave of inventory surges, with listings ballooning 55% over previous year, leaving countless homes abandoned and unsold.

Once-hot units now rot on the market, their value collapsing under relentless pressure.

Each new listing deepens the chaos, tightening a vice around investor hopes. Is this only the initial phase, or will the market spiral further into darkness?

Condo Market Turmoil: Price Cuts, Panic, and Glut

A stunning collapse is hammering Seattle’s condo market, shattering investor confidence and sending shockwaves through the city’s real estate scenery. The steep decline is relentless, as sellers slash prices, buyers evaporate, and uncertainty fills the air. Across once-coveted neighborhoods, panic pulses through listing agents and owners, who watch the battleground of supply and demand shift with frightening speed.

In January 2025, the citywide median condo price soared to a breathtaking $689,975, marking a 28.4% year-over-year explosion. But hope was short-lived. By February, prices plummeted by an astonishing 9.4%—a collapse that erased months of gains in a matter of weeks.

Sellers across South and Southeast Seattle scrambled to cut asking prices by 6% to 8.5%. Even high-end listings in West Bellevue and Capitol Hill could not escape the carnage. The chaos spread, with Queen Anne condos surging an unbelievable 50.5% in January, only for the momentum to collapse under the weight of falling bids and panicked selling.

With active condo listings increased 55% YoY to 699, inventory has risen sharply even as demand has dwindled. Market liquidity, once the hallmark of Seattle’s condo scene, now teeters on the brink. While new condo listings spiked 34% year-over-year in the first quarter, inventory glut drowned demand. Units lingered even as frantic developers rolled out aggressive incentives—multiple upgrades, waived fees, mortgage buydowns—to coax wary buyers.

Still, transactions thinned, and owners discovered their homes chained to sinking valuations. The appeal of developer incentives seemed hollow as buyers, scarred by the dip, braced for further losses. The tight inventory across Seattle’s housing market contrasts sharply with the condo sector’s struggles, as resale homes citywide see homes go pending in under 30 days—with near 60% selling below $1.25M moving swiftly—highlighting a divide between condos and single-family homes.

The Eastside, once a stronghold of affluent buyers, felt the quake. Median condo prices climbed 9% year-over-year to $735,000, yet the pace could not fend off the spreading panic.

In Redmond, dizzying 27% year-over-year price jumps attracted swarms, but even this fever broke as market liquidity froze. In Woodinville, where new construction drove a jaw-dropping 108% price surge and sales volume exploded by 41%, the euphoria threatened to vanish.

Buyers now moved with crumbling confidence, demand fragile, haunted by the specter of quick shifts and uncontrolled price erosion.

Even as overall sales appeared to hold, cautious optimism vanished. Seattle’s North End and Eastside bucked some trends—more than 50% of condos sold at or above list price, 44% closed within 10 days—but the narrative was clear: sellers cut prices, desperate to lure the shrinking pool of buyers.

Investors, once emboldened by soaring values and tight inventory, recoiled, fearing relentless volatility and the pain of catching a falling knife.

For U.S. real estate professionals watching Seattle, this wave of price slashing is a chilling warning. Market forces are merciless.

Neighborhoods that witnessed meteoric rises are now battlegrounds, their futures uncertain. Rapid shifts in inventory, fragile market liquidity, and desperate developer incentives have ignited chaos, erasing confidence and revealing just how quickly prosperity can collapse.

Assessment

Seattle’s condo market is facing serious headwinds, with unsold units piling up and prices taking a significant hit. Inventory has jumped by 55%, putting tremendous stress on sellers who have already dropped prices by about 15% in hopes of attracting buyers. Despite these efforts, demand remains weak and many potential buyers are staying on the sidelines. With the market cooling rapidly and uncertainty looming, both sellers and buyers are left wondering what comes next.

What Does This Mean for You?

Now is the time to pay close attention if you’re considering buying or selling a condo in Seattle. Whether you’re trying to make the most of a buyers’ market or planning your next move as a seller, staying informed and seeking guidance from real estate professionals can help you navigate this period of volatility—don’t wait too long to explore your options, as the situation could shift even further.