Real Estate Trends in Skagit County
In Skagit County, the real estate market appears to be shifting somewhat in the direction of more available inventory. Residential listings have increased, signaling a slight easing yet maintaining a seller's advantage with median prices rising to $590K. Conversely, the condo market has balanced out with more listings and a notable price drop to $417K. Winter is typically slow, so we will learn more about how the market is developing this year as spring comes on.
Residential Market Dynamics
The residential real estate market in Skagit County has experienced a noticeable shift, with 28% more new listings in January 2025 compared to January 2024. This uptick suggests a loosening market, providing potential buyers with more options. However, despite this increase, the market remains tight, leaning heavily in favor of sellers because the market has been so extremely tight these past few years. Further evidence of the seller's market is the slight dip in the months of inventory. In a market where a 4- to 6-month supply indicates a balance between buyers and sellers, the current inventory levels clearly signal that the seller's market is not ready to yield to a more balanced supply. The median price for residential properties rose more than 8%, a reflection of how demand exerts upward pressure on prices. Next we take an overview of the condominium market in Skagit County.
Condo Market Adjustments
The condo segment presents a contrasting narrative. New listings more than doubled alongside a dramatic boost in months of inventory. This significant increase propels the condo market into a balanced state, where neither sellers nor buyers hold a distinct advantage. However, due to the relatively small number of transactions, these figures, though indicative of a trend, should be approached with caution regarding their market-wide significance. Following this increase in supply, the median price for condos took a downward turn. This price adjustment underscores the impact of increased inventory on the condo market, alleviating some of the upward pressure on prices seen in the residential segment. Now let's turn to the statistics behind these residential and condominium trends.
Listing Statistics for Skagit County
Referring to the graphs below, we see that the number of active listings rose in Skagit County from 142 in January 2024 to 206 in January 2025, a 45% increase. Condominiums also soared from 7 to 24, more than 240%. These numbers indicate a thawing of the market.
Similarly, the number of new residential listings in Skagit County rose year over year from 75 to 112 (a 49% increase) and new condo listings rose from 6 to 14 (133%). These numbers indicate a more balanced market is in the offing than we have seen these past few years.
As shown in the third graph below ("Months of Inventory in Skagit County"), the amount of inventory on the market actually declined for residential properties from January 2024 to January 2025, though this was not the case for condominiums, which soared to 6 months.
"Months of inventory" is a real estate statistic indicating how long it would take at the current pace of sales to sell all of the active listings currently on the market. Between 4 and 6 months is considered a balanced market, while less is a seller's market and more is a buyer's market. Thus we see that Skagit County continues to be a seller's market for residences but is a balanced market for condominiums.
Finally, let us look at the median sales prices, shown in the graph at right. Residences rose 8.7% year over year, climbing from $543K to $590, while condominiums decreased by 14%, going from $485K to $417K. Both of these trends are aligned with the findings in the months of inventory, as inadequate inventory in the residential market puts upward pressure on prices while high condominium inventory relieves price pressure.
Economic Influences
Both segments of Skagit County's real estate market are navigating through an environment shaped by external economic pressures. Mortgage rates, though stabilized, remain high compared to the lows experienced during the pandemic and pre-pandemic years. This factor, coupled with rising inflation, introduces a degree of hesitancy among potential buyers, contributing to the market's overall subdued activity. In addition, owners who purchased or refinanced in the past few years when rates were historically low are generally unwilling to sell because they are "locked into" their low-interest mortgages and moving would mean getting a loan with a much higher rate.
Despite these challenges, January may indicate a thawing is coming. The increase in residential listings suggests that sellers are gradually becoming more active, a positive sign for buyers waiting on the sidelines. Spring is traditionally the busiest time of the year for real estate, and the numbers in the next few months will be more telling as to the direction of the market.
Looking Forward
As Skagit County's real estate market moves through 2025, prospective buyers and sellers should stay informed of the evolving market conditions. Economic factors, such as mortgage rates and inflation, will continue to influence market dynamics, potentially affecting the pace at which the market can adjust to a more balanced state.
In conclusion, while the Skagit County real estate market shows signs of adjustment, particularly within the condo segment, the overall market remains constrained by broader economic conditions. Buyers and sellers alike must navigate this landscape with an informed perspective, recognizing that shifts in listings, inventory, and median prices are indicative of deeper market trends and economic influences.
Learn More
If you are interested in learning more about real estate in Skagit County or would like a free, no-obligation comparative market analysis of your home, reach out to Erik Zaugg at (206) 713-2103 or Joe Klarman at (206) 683-5639.
