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The price of homes in Washington state has been relatively cool over the past year, though demand continues to be high. But what will 2026 bring? How will the housing market in Washington fare this year?
According to forecasts, the real estate market in Washington State will expect modest price growth overall in 2026, driven by improved affordability and slightly easing mortgage rates.
According to recent regional data and local forecasts:
Recent reports suggest home price growth in the broader Seattle metro area (including Washington’s major population centers) will be slow or relatively flat rather than sharply rising in 2026.
Some local analysts expect little to no price growth in the Puget Sound region, as more inventory becomes available and buyers remain cautious.
Mortgage rates are expected to ease somewhat in 2026, which can help more buyers enter the market and support stable or slightly rising prices.
Limited supply relative to demand in key parts of Washington (especially near job hubs like Seattle and Bellevue) may prevent prices from falling dramatically.
Greater Seattle area: Forecasts indicate price increases of about 1–2% in 2026, with median prices expected to stay relatively stable or rise slightly.
Suburban and smaller markets: Areas outside major metros may see more varied trends — some with modest price gains and others more stable depending on local demand and inventory levels.
Here are some of the hottest housing markets in Washington state right now, based on recent home-price growth and buyer demand trends:
Issaquah has been one of the fastest-growing home price markets in Washington, with prices rising more than many other areas statewide recently — around 25.7% year-over-year growth. It’s popular due to proximity to Seattle, strong local amenities, and good schools.
Yakima has also seen very strong price growth — roughly 17.8% year-over-year — making it one of the top markets for rising values in the state. Relative affordability compared with western Washington and steady demand have helped drive that growth.
Bremerton is another standout, with about 11.7% home-price growth over the year. Its location near the Puget Sound, strong commuter links to larger employment hubs, and growing buyer interest contribute to competitive pricing.
There just aren’t enough homes on the market for the amount of buyers seeking them. And this is putting upward pressure on house values statewide. And these trends are likely to continue throughout 2026.
According to the real estate data company Zillow, the median home value for Washington dipped by around 0.4% over the past year to the current median price of $587,696.
Historically, going back several decades, house prices in the U.S. tend to rise by around 3% to 4% annually. Zillow’s economists expect price growth to pick up a little over the coming months.
Related: How much is my home worth?
Inventory is the real story in this market. Housing supply is limited in most cities across the state, particularly in the King County area where there is barely a one-month supply in the county.
A “balanced” real estate market has around a five- to six-month supply of homes for sale. But most markets across Washington State don’t have anywhere near that amount, but instead are hovering somewhere around the 2-month supply mark.
Are you looking to apply for a mortgage to buy a home in WA State? Sammamish Mortgage is here to help. We have served home buyers and homeowners across the state since 1992. We are a family-owned company based in Bellevue, WA, and provide mortgage programs for borrowers across Washington, Oregon, Idaho, California, and Colorado. Please contact us if you have questions about getting a mortgage loan in Washington or to get pre-approved to start the process.
Forecasts suggest Washington’s real estate market will remain relatively healthy in 2026, supported by a strong local economy and continued demand.
Yes. Competition remains elevated largely because buyer demand continues to exceed the number of homes available for sale in many Washington markets.
The main driver is an imbalance between supply and demand: population growth and economic strength are sustaining demand, while the number of homes for sale remains constrained in many areas.
Months of supply estimates how long it would take for available homes to sell at the current sales pace. Lower months of supply generally indicates a tighter, more competitive market.
A balanced market is commonly described as having about a five- to six-month supply of homes for sale.
King County inventory is described as well below a balanced level, which contributes to stronger competition among buyers.
Spokane attracts buyers looking for more affordability than Seattle while still offering strong demand, frequent multiple-offer situations, and relatively quick home sales.
Yes. Spokane has seen recent price increases and is expected to continue rising into 2026 based on ongoing demand and limited supply.
Quick sales are typically driven by limited inventory and high buyer demand, which can lead to multiple offers and faster turnaround times after listing.
Yes. Sammamish Mortgage provides mortgage programs for borrowers in Washington and can help buyers and homeowners with home financing and related questions.
Whether you’re buying a home or ready to refinance, our professionals can help.
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