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Seattle’s home prices have traditionally been very high relative to other centers across the state of Washington, and tight inventory is one of the driving factors behind this.
Here’s a look at Seattle’s current housing inventory situation and how it could impact buyers looking to buy in Seattle in 2026.
According to reports, the Seattle metropolitan-area housing market is one of the tightest markets in the country in terms of inventory. The number of active listings has declined year-over-year, leaving fewer homes available for Seattle homebuyers.
Related: Seattle housing forecast
Over the past year, housing inventory has been on a decline in Seattle. In fact, data suggests that inventory in the area is nearly at a two-year low. Year-over-year, supply in the Seattle Metro Area and surrounding King County is down, with factors such as high interest rates and economic uncertainty influencing the situation.
Last year at the same time, inventory in Seattle was much higher, which put a damper on soaring price gains and actually caused the average home price in Seattle to decline.
Supply is particularly tight in the lower price range, where demand is a lot stronger.
Right now, there is a 2.8-month supply of available homes for sale in Seattle and surrounding King County. Other counties are seeing similar inventory crunches, including Snohomish County and Pierce County.
The tight inventory can explain why Seattle home prices are starting to pick up speed in terms of appreciation. Prices in Seattle are now averaging $832,857, according to Zillow, as of January 2026.
Among the largest metro areas in the US, Seattle’s real estate market recently saw a slight increase in available housing inventory, which could help buyers entering the market in 2026.
Changing inventory conditions had a cooling effect on home-price appreciation across the metro area last year, but things have shifted gears. We’re starting to see signs of this already. Affordability continues to be an issue in Seattle, even during the lull in prices a couple of years ago.
And now that home prices in Seattle are starting to pick up again, the situation will be even more of an issue from an affordability standpoint. Despite a recent dip in home prices YOY, experts suggest a modest growth in prices over the next year.
While prices in Seattle have decreased over the past year, most forecasts for Seattle home prices in 2026 expect modest, low-single-digit gains as higher inventory and buyer caution temper rapid increases. Many projections are in the ~1–4% range rather than steep rises or declines. Limited supply and strong tech employment should still support values, but affordability pressures and rate sensitivity keep growth moderate compared with past boom years.
Mortgage interest rates have been quite high over recent years, but are actually on a downward trend over the past year. Currently, the rate for a 30-year fixed-rate mortgage is sitting at 6.06%, as per Freddie Mac. If home prices keep appreciating, it still could be a good time to buy a home in Seattle. It’s still a seller’s market, however, and pockets must be deep to get a home in high-demand neighborhoods in Seattle.
Will you need mortgage financing to buy a home in Seattle, WA? We can help. Sammamish Mortgage has been serving buyers across the Pacific Northwest since 1992. We offer a wide variety of mortgage products and programs with flexible qualification criteria for borrowers across Washington, Oregon, Idaho, Colorado, and California. Visit our website to get an instant rate quote or to use our mortgage calculator. Ccontact us today with any financing-related questions you have or to get pre-approved for a mortgage.
Whether you’re buying a home or ready to refinance, our professionals can help.
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