If you're considering buying or selling a home in Olympia, Washington, you're probably wondering just how fierce the competition is these days. The short answer is, it’s still a seller’s market, but the landscape is subtly shifting from the high-intensity scramble of recent years. Understanding the current dynamics of the competition in Olympia real estate market can help you make smarter decisions, whether you’re aiming to get the best deal or sell swiftly and profitably.

Let’s dive into what the 2025 market looks like for Olympia residents and prospective buyers alike.

The Big Picture: Olympia’s Housing Market at a Glance

As of September 2025, Olympia’s median listing home price hovers around $590,000, experiencing a slight dip of about 1.7 percent compared to last year. This price trend indicates a market adjusting to broader economic shifts, such as rising mortgage rates and fluctuating demand.

Sales are happening quickly, with homes typically spending around 48 days on the market before finding a buyer—a trend slightly longer than previous months but still indicative of a strong seller’s market. Interestingly, homes in Olympia are selling very close to their asking prices, with an average sale-to-list price ratio of nearly 100 percent. This means buyers are willing to meet sellers’ asking prices, reflecting a resilient competition in Olympia real estate market.

What Does This Mean for Buyers?

While competition remains tight, there are signs of a more leveled playing field compared to the frenzied years of 2022 and 2023. Several factors influence this:

• Market Cooling Slightly: The median days on the market suggest buyers now have marginally more time to consider properties.

• Price Stability: The median sold home price is around $559,000, close to asking prices, indicating neither a buyer’s nor a seller’s advantage overwhelmingly dominates.

• Interest Rates: Mortgage rates in Olympia are slightly higher, which can curb some of the aggressive bidding wars. This provides buyers with a better chance to negotiate.

Pro tip: If you're hunting for a home, stay prepared to act quickly. Get pre-approved, understand the market norms, and work closely with a local expert like Dane & Michelle Johnston to craft a winning offer.

Sellers Are Still in the Driver's Seat

For sellers, the competition means you’re likely to receive strong offers, often at or above your asking price. Conditions favor a quick sale, especially for well-priced, move-in-ready homes. But the slight market slowdown also means pricing it right from the start is more critical than ever.

Homes with desirable features or in popular neighborhoods like Eastside, Northwest Olympia, or South Westside tend to attract multiple offers. However, if your property is priced too high or needs repairs, expect it to linger longer on the market.

Neighborhood Insights and Market Segments

Different parts of Olympia illustrate the competition variations. For example:

• Eastside: Median listing price around $460,000, with competitive bidding still common.

• Northwest Olympia: Slightly more expensive, with median prices around $499,000 but still dynamic.

• South Westside: More affordable, median around $425,000, offering opportunities for first-time buyers.

In the luxury segment, neighborhoods like Cain Road with median listings over $817,000 still see steady interest, though at a more measured pace.

External Trends Influencing Olympia’s Market

According to realtor.com insights, Olympia is part of a broader regional trend. The Thurston County housing market mirrors national patterns—moderate price adjustments, increased inventory, and longer days on market compared to the peaks of recent years.

While the competition in Olympia real estate remains fierce where affordable and desirable, the overall market in 2025 presents a more balanced environment. Buyers have opportunities to negotiate, and sellers should still act swiftly to capitalize on their advantages.

Actionable Tips for Navigating 2025

For Buyers:

• Secure pre-approval before shopping.

• Act fast on listings that match your criteria.

• Be flexible with your needs and open to negotiations.

• Collaborate with local experts like Dane & Michelle Johnston to navigate bidding strategies.

For Sellers:

• Price your home realistically based on current trends.

• Make necessary repairs to boost appeal.

• Highlight unique features that differentiate your home.

• Consider timing your listing during peak demand periods.

Final Thoughts

While the competition in Olympia real estate market continues to be significant, 2025 offers a more tempered environment than the recent boom years. Both buyers and sellers who stay informed and work with seasoned local agents can find success.

If you're ready to make a move, don’t hesitate to reach out to Dane & Michelle Johnston. Their deep understanding of the Olympia market and personalized approach can help you achieve your real estate goals smoothly.

Contact Dane & Michelle Johnston

📞 Phone: 206-941-0484
📧 Email: [email protected]
🌐 Website: https://teamjohnston-realestate.com

Whether you're buying, selling, or just exploring your options, you deserve a trusted partner who's rooted right here in Olympia. Let’s navigate this market together!