Housing Market Update – June 4, 2026

If you’re buying, selling, or refinancing in Washington, Oregon, Idaho, California, or Colorado, here’s what the market looks like right now – at the state and county level.

These are the five states where we focus our lending, and conditions vary meaningfully between them. We’ve pulled the most current data available as of May 29, 2026, so you have a clear picture of where things stand in your specific market.

Washington

Washington’s housing market is stabilizing in 2026 after several years of dramatic price swings. Active listings are up roughly 28% year-over-year statewide, and inventory has crossed back above pre-pandemic 2019 levels – a meaningful shift that is giving buyers more options than they’ve had since before COVID. Despite rising supply, demand near major employment centers like Seattle and Bellevue remains firm.

The statewide market sits at approximately 2.8 months of supply, still technically a seller’s market, though conditions are softer than a year ago. The median statewide sale price came in at $649,950 in April 2026 (NWMLS), up 1.6% year-over-year, and homes are spending an average of 54 days on market before going under contract. Notably, Seattle is now one of the weakest-performing major markets nationally per the latest Case-Shiller report (March 2026), with prices down 2.5% year-over-year – a stark contrast to some suburban counties that are still holding positive appreciation.

The Mountain division that covers Washington showed the most price weakness of any FHFA census division in February 2026, falling 1.1% month-over-month. Buyers with flexibility on location are finding their best opportunities in Pierce and Spokane counties, where affordability is stronger, and competition is more measured.

County-level indicators for Washington, including median price, price per square foot, 1- and 5-year forecasted appreciation, household formations, homes being built versus demand, and the share of renters who can afford to buy, are shown in the tables below.

Oregon

Oregon has moved into a more balanced housing market in 2026. The state has surpassed pre-pandemic 2019 active inventory levels, giving buyers meaningfully more selection than in recent years. The statewide median for single-family homes is approximately $472,000 as of May 2026, with the Portland metro running between $508,000 and $549,000 and appreciation near flat to slightly positive at 1–2% annually.

Days on market have lengthened to around 46 days statewide, up two days from a year ago, and homes are selling at approximately 99% of list price. With around 4.2 months of supply, the market is functioning more like a balanced environment than the seller’s market Oregon experienced in 2021–2023.

Buyers are finding the most flexibility in the Portland suburbs, while Bend continues to command a premium above $600,000, driven by remote-work demand and outdoor recreation appeal.

Idaho

Idaho’s housing market has returned to pre-pandemic inventory levels – a significant milestone given how severely supply-constrained the state was during the 2021–2023 boom. Median sale prices pulled back modestly to $476,300 statewide in March 2026, down 1.7% year-over-year, while sales volume jumped 14.6%, a sign that buyers are re-entering as conditions improve.

Boise’s median sits near $495,000, essentially flat from a year ago. With homes spending an average of 68 days on market and only about 14% selling above list price (compared to far higher rates during the pandemic peak), buyers currently have appreciably more negotiating leverage in Idaho than anywhere else in the five states we lend in.

Ada County remains the most active market, but even there, builders are outpacing demand, one of the few areas in the country where new construction is actually providing a surplus rather than a deficit.

* Which means there is a surplus of over 2,000 more homes being built annually vs. demand

California

California’s housing market continues to operate under the tension between strong long-term demand and severe affordability constraints. The California Association of Realtors projects a statewide median price of $905,000 for 2026, up 3.6% from 2025, while forecasting 274,400 existing home sales for the year.

Inventory statewide has crossed above pre-pandemic 2019 levels – a notable development – though supply remains structurally constrained by the rate lock-in effect: approximately 77% of California homeowners hold mortgage rates below 5%, which powerfully discourages listing. Only 18% of California households can afford the median-priced home at current rates.

Despite these headwinds, new home sales in the West were the one bright regional spot in April 2026, rising 18.7% month-over-month while declining sharply everywhere else in the country. San Diego and San Francisco remain the most competitive markets, while Los Angeles is showing modest softening following the January wildfires.

* Which means over 1,500 more homes need to be built annually to keep up with demand

* Which means over 4,000 more homes need to be built annually to keep up with demand

Colorado

Colorado’s housing market is in a methodical rebalancing phase. Active listings in the Denver metro reached 13,447 in spring 2026, up 23% year-over-year and above pre-pandemic norms, giving buyers the most selection they’ve had in years. The statewide median pulled back to $604,600 in March 2026, down 2.1% year-over-year, though the Denver metro median has held steadier near $575,000.

Sales activity is picking up: Denver metro closed sales rose 2.7% in Q1 2026, and pending contracts were up 6.5%, a sign that buyers are slowly returning as inventory improves. Homes are spending an average of 56 days on the market in Denver. Colorado Springs has seen inventory grow nearly 10%, creating some of the most buyer-friendly negotiating conditions in the state.

Colorado is operating in a buyer-leaning balanced market where condition and pricing discipline matter more than they have in years, and sellers who overprice are experiencing longer days on market and a growing rate of price reductions.

* Which means over 2,500 more homes need to be built annually to keep up with demand

National Home Data

For a broader context on what’s driving mortgage rates, builder activity, and buyer sentiment across the country, here is a summary of the major national housing reports released this week.

The S&P Cotality Case-Shiller U.S. National Home Price Index (released May 26, 2026) posted a 0.7% annual gain for March 2026 – the 14th consecutive month of slowing annual price growth and the lowest reading since June 2023. On a seasonally adjusted basis, the national index fell 0.2% month-over-month in March, the first monthly decline in eight months. After adjusting for inflation, the real annual change was -2.4%, meaning home values continue to lose ground against inflation. More than half of the 20 major U.S. markets tracked by Case-Shiller posted year-over-year price declines in March. Seattle (-2.5%) is currently the weakest major market in the country, while Chicago (+6.1%) is the strongest.

The FHFA House Price Index (also released May 26, 2026, as its Q1 2026 quarterly report) showed prices unchanged in February on a monthly basis and up 1.7% year-over-year nationally. The Mountain census division – which covers Washington, Oregon, Idaho, and Colorado, was the weakest region nationally, falling 1.1% month-over-month in February and down 0.7% year-over-year. The Middle Atlantic division led the country with a +4.2% annual gain.

New Home Sales (released May 28, 2026) fell 6.2% in April to a seasonally adjusted annual rate of 622,000, the lowest in three months and 11.3% below the April 2025 pace. The decline came as higher mortgage rates and geopolitical uncertainty weighed on buyer confidence. Sales dropped sharply in the South (-9.8%), Midwest (-25%), and Northeast (-12.9%), but rose 18.7% in the West – the one regional bright spot and directly relevant to our five lending states. The median new home price rose to $422,500, and supply climbed to 9.4 months, well above the 4–6 month normal range. NAHB Chief Economist Robert Dietz noted the Midwest is a relative bright spot year-to-date, while the rest of the country has seen declining new home sales volumes.

Existing Home Sales (released May 11, 2026 – April 2026 data) rose 0.2% month-over-month to a seasonally adjusted annual rate of 4.02 million units, essentially flat year-over-year. Total inventory reached 1.47 million units – a 4.4-month supply and the most for any April since 2019. The median existing-home price was $417,700, up 0.9% year-over-year, marking the 34th consecutive month of year-over-year price increases. Properties spent a median of 32 days on market in April, up from 29 days a year ago. Notably, Freddie Mac’s Chief Economist Sam Khater highlighted this week that pending home sales have now increased for three consecutive months, signaling latent demand that is ready to move when mortgage rates provide relief.

Housing Starts (released May 21, 2026 – April 2026 data) fell 2.8% to a seasonally adjusted annual rate of 1.465 million units, pulling back from March’s pace of 1.507 million. Single-family starts dropped 9.0% to 930,000. Despite the monthly dip, April starts were still 4.6% above April 2025 levels. Single-family permits declined for the second consecutive month, suggesting some further softening in single-family construction ahead. The overall building pace continues to run below what is needed to address long-term supply shortfalls, particularly in Western markets.

CoreLogic’s Home Price Insights showed annual U.S. home price growth easing to 0.7% year-over-year in January 2026, down from 3.5% at the start of 2025. The Northeast and Midwest remain the strongest-performing regions nationally. Locations with consistent job growth continue to be the primary driver of appreciation, while many Western markets face inventory and affordability headwinds.

Mortgage Rates: Freddie Mac’s Primary Mortgage Market Survey released May 28, 2026, put the 30-year fixed rate at 6.53% – up slightly from 6.51% the prior week but down meaningfully from 6.89% a year ago. Daily tracking from Zillow puts the rate at 6.59% as of May 29. Rates have risen since the U.S. and Israel began military operations against Iran in late February, as higher oil prices have added to inflation expectations and pushed Treasury yields higher. The 10-year Treasury yield climbed from below 4% in early March to 4.66% by mid-May. Fannie Mae’s May 2026 forecast projects the 30-year fixed rate averaging approximately 6.3% through much of 2026 before easing slightly in 2027.