Housing prices in Seattle have cooled from their earlier highs, and the market has become more balanced as inventory has increased.
Seattle home values were down 2.2% year over year through summer 2026, while active listings in the Seattle-Tacoma-Bellevue area increased more than 20%.
What will the rest of 2026 bring for Seattle’s housing market?
Seattle’s real estate market was somewhat dull over the past year, with home prices dipping slightly year-over-year.
That said, housing inventory continues to remain very tight. Let’s go over some key points that characterized the market last year.
The Seattle-area housing market has become more balanced as inventory continues to grow.
In summer 2026, NWMLS reported that new listings across its service area increased nearly 6% year over year, while closed sales rose 2.3%. Active listings were also up 16.4% from a year earlier, giving buyers more homes to choose from.
Seattle has long been one of the more expensive real estate markets in Washington State and the country as a whole.
As of summer 2026, the average home price in Seattle sits at $856,052, as per Zillow, marking a 2.2% decrease from the same time last year.
Seattle’s home prices help keep the average price on the surrounding King County high. Right now, King County’s average home price is $858,284. That’s 2.5% lower than where prices were the same month last year.
That said, demand for housing in Seattle continues to be driven by an increase in millennial buyers entering the market, as well as the tech jobs in the city that draw in interested buyers.
Having said that, the rate of price appreciation was certainly not very strong last year, partly due to high mortgage interest rates.
Tight inventory continues to be a trend in Seattle and the surrounding markets throughout the Evergreen State.
Right now, Seattle has just a 3.2-month supply of housing available. The supply is pretty much the same in King County. A balanced market is characterized by a 5- or 6-month supply, which means Seattle has less housing available to meet the demands of prospective buyers.
As supply fails to meet demand, the price of homes may continue to increase throughout the year.
Home prices in Seattle have softened over the past year, and the market is expected to remain relatively balanced through 2026 as higher inventory gives buyers more negotiating power.
Inventory is no longer extremely tight. More homes are coming onto the market, giving buyers greater selection and negotiating power.
While strong demand in desirable Seattle neighborhoods could help support prices, the combination of higher inventory and elevated mortgage rates is likely to keep price growth relatively modest.
The Seattle real estate market remains competitive in some segments, particularly for well-priced homes in desirable neighborhoods. However, multiple-offer situations are no longer guaranteed, and sellers may need to price strategically and be prepared to negotiate.
Seattle home values have declined modestly over the past year, while inventory has increased. If these trends continue, buyers could have more leverage through the rest of 2026, while sellers may need to adjust their expectations to changing market conditions.
First-time homebuyers looking to enter the Seattle market may want to consider condos as a more affordable alternative to single-family homes.
Condo inventory has increased, giving buyers more options and negotiating power. In May 2026, Seattle had more than 1,100 condo units listed for sale, while the median price for a typical condo unit was about $480,000.
The recent health crisis prompted urban dwellers to rethink their living arrangements, given the lack of space, both indoors and outdoors. In an effort to gain more space, many Seattle homeowners chose to migrate out of the city center and seek out suburban options.
The rapid growth in work-from-home arrangements has also given residents plenty more flexibility in terms of where to live relative to work locations. This trend will likely continue throughout 2026, as more people look to move into homes that can accommodate home offices.
Such an exodus out of the downtown core is putting upward pressure on home prices in areas that have traditionally been much more affordable centers outside of Seattle.
The increased competition among buyers in once-affordable locations will therefore continue to put more pressure on homebuyer hopefuls with tighter budgets.
Even though home prices are high in Seattle, 2026 is still a good time to buy, for a few important reasons.
Securing a low interest rate on a mortgage is a great way to keep housing costs low.
But although rates were very low just a few short years ago, they’re quite high right now. As of this writing, the rate for a 30-year fixed-rate mortgage is 6.69%.
Mortgage interest rates have been steady for the past couple of years, but experts believe that rates will head downward by the end of this year and into the next. According to the Mortgage Bankers Association (MBA), mortgage rates may dip down to 6.1% by the end of the year.
Having said that, we haven’t really seen the rate of decline that experts had earlier suggested.
Given the continued rate of price appreciation that is expected this year, albeit somewhat weak, buyers who purchase a home earlier on in the year will be able to ride the wave of price increases.
Along with appreciation in property values comes a growth in home equity. The sooner buyers get in the market, the sooner they can take advantage of such equity growth.
At Sammamish Mortgage, we can help you get fully pre-approved for a mortgage in Seattle, WA, even in the face of home appreciation rates.
Sammamish Mortgage has been in business since 1992, and has assisted many homebuyers in the Pacific Northwest. If you are looking for mortgage financing in Washington State, we can help you get pre approved. Sammamish Mortgage offers mortgage programs in Colorado, Idaho, Oregon, California, and Washington, like our fixed-rate mortgages, adjustable-rate mortgages, and jumbo loans.
Contact us if you have any mortgage-related questions or concerns. If you are ready to move forward, you can view rates, obtain a customized instant rate quote, or apply instantly directly from our website.
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