Thurston County's Luxury Market Shift: $2 Million Home Sales Become New Benchmark

OLYMPIA — Thurston County's high-end housing market has reached a new milestone, with year-end data revealing a dozen homes sold for $2 million or more in 2025—a figure that would have been unthinkable just a few years ago.

The Northwest Multiple Listing Service, which tracks regional sales, recently adjusted its luxury benchmark upward from $1 million to $2 million, reflecting what analysts describe as a permanent shift in the area's property values.

"We updated the benchmark after reviewing long-term market trends," said Madeline Feder, a spokesperson for Northwest MLS. "Given how pricing has evolved, the $2 million threshold now offers a more meaningful snapshot of the luxury segment."

According to Mitch Dietz, owner of Coldwell Banker Evergreen Olympic Realty in Olympia, nearly all of the 2025 multi-million-dollar sales shared a key attribute: proximity to water. "These were primarily waterfront or water-view properties in areas like Budd Inlet, Eld Inlet, Johnson Point, and Long Lake," Dietz noted.

So what does $2 million buy in today's Thurston County? Typically, a waterfront view and roughly 5,000 square feet of living space—a sharp contrast from two decades ago, when such a price was almost unheard of locally.

The data underscores a rapid escalation in high-value transactions. Prior to 2022, only 10 homes had sold for $2 million or more in the county. Since then, 39 such sales have closed, with 12 occurring in 2025 alone.

Industry observers point to the pandemic-era real estate boom as a catalyst. Record-low mortgage rates, coupled with high demand and limited inventory, pushed prices upward—a trend that has persisted even as interest rates later rose.

While the $2 million sales draw attention, the broader market tells a more nuanced story. In 2025, Thurston County saw 138 homes sell for at least $1 million. Overall, single-family home sales remained nearly flat year-over-year, with a modest 0.51% increase to 3,333 units. The median price rose 3.88% to $535,000.

"The market is finding its balance," Dietz said. "But lower mortgage rates have sparked renewed interest." In January, Freddie Mac reported an average 30-year rate of 6.1%, down from about 7% a year earlier.

Sam Khater, Freddie Mac's chief economist, said in a statement, "Mortgage rates remain near their lowest levels in three years, which is encouraging for potential homebuyers who have waited to enter the market."

Voices from the Community:

• James Rivera, a longtime Olympia resident and retired teacher: "It's astonishing to see these prices in our community. While it reflects growth, I worry about what this means for families who've lived here for generations and are now priced out."

• Linda Chen, a real estate investor from Tacoma: "Thurston County offers value compared to King County. Waterfront properties at $2 million are still a relative bargain, and the data confirms this area is maturing as a luxury market."

• David Park, a first-time homebuyer in Lacey: "As someone trying to enter the market, these numbers are discouraging. The gap between the luxury segment and affordable housing keeps widening. It feels like the American Dream is shifting further out of reach."

• Rebecca Torres, a local business owner: "This isn't just about houses—it's about community character. When million-dollar sales become the norm, we risk losing the middle-class backbone that made this area vibrant. We need policies that ensure growth benefits everyone, not just the wealthy."

Source: Northwest MLS year-end data, broker commentary, and Freddie Mac.