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The 2026 housing market is likely to be characterized by moderate price appreciation rather than sharp gains, rising inventory and slower sales compared with recent years, improved balance between buyers and sellers, and gradual improvement in affordability if mortgage rates decline modestly.
Certain centers in Washington State, in particular, are seeing very hot housing markets, including Tacoma, Federal Way, and Kent, among others, as a result of low inventory and high demand. These are a few of the Washington State real estate market trends we are tracking in 2026.
What will home buyers find when they begin their search for a home in Washington State?
Limited inventory and higher prices. That said, only time will tell exactly how the WA State housing market will fare. Those are the prominent trends in the Washington State real estate market right now.
According to recent data from Zillow, a real estate research company, home prices in Washington statewide were down 0.5% year-over-year as of February 2026. That’s only a slight dip, and experts are expect the average home price in the state to inch up this year.
According to the latest data, the median home price for Washington State is now around $585,669, according to Zillow. Of course, it’s much higher in the Seattle metro area, but we’ll get to that in a moment.
Washington State home prices are quite high and have increased over the past few years, despite the slight dip over the past 12 months. They’re expected to rise throughout 2026, albeit at a modest pace.
Seattle and the surrounding King County is an exaggerated version of the real estate market trends happening across Washington State in 2026. In many cities, limited inventory and strong demand are pushing prices north. And nowhere is this trend more apparent than in Seattle.
In fact, recent data suggests that Seattle’s housing inventory currently has a 2.2-month supply. That’s much lower than what is considered to be a balanced market in which there would be 5- to 6-months’ worth of inventory available for sale. And in overall King County, housing inventory only has a 2.8-month supply.
In Seattle, the median home price currently sits at $837,193 as of February 2026, according to Zillow. That was a decrease of 2.1% year-over-year. However, experts suggest prices in Seattle will increase modestly throughout 2026.
Washington State real estate market trends have created a sense of urgency among home buyers planning to enter the market.
Along with increasing home prices in Washington, mortgage rates have been holding steady. According to the latest survey by Freddie Mac, the average rate for a 30-year fixed mortgage loan sits at 6.09% in February 2026.
Even though rates are high, they’re expected to dip throughout the upcoming months. As such, it may still be a great time for buyers to get into the Washington housing market to take advantage of lower rates before home prices rise even more. It’s also a great time for homeowners to refinance their mortgage and lock in at today’s rock-bottom rates.
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If you are in need of the assistance of a seasoned mortgage company in Washington, Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, WA. We serve borrowers across Washington, Idaho, Colorado, Oregon, and California. We have been offering a wide variety of mortgage programs and products with flexible qualification criteria since 1992, and we’d love to help. Visit our website to get an instant rate quote or to use our online mortgage calculator. Please contact us if you have any questions or are ready to get pre-approved for a mortgage.
Overall, home prices in Washington have shown moderate growth with slowing appreciation compared to the rapid increases seen earlier in the decade.
Markets like Seattle, Bellevue, and Sammamish tend to remain highly competitive due to job growth and high demand.
Inventory has generally increased from record lows, giving buyers more options than in the past few years.
While some areas still favor sellers, many markets are shifting toward more balanced conditions between buyers and sellers.
Yes — higher interest rates have reduced some buyer demand, contributing to a slower pace of home price growth. Though rates are on their way down, which is a good thing for buyers.
New home builds, especially in suburban areas, are adding inventory and helping meet demand.
Regions with strong employment growth tend to see more housing demand and steadier price trends.
Affordability remains a concern due to high prices and mortgage rates, but recent inventory increases and mortgage rate decreases help somewhat.
Many forecasts expect modest price gains and balanced inventory, with continued regional variation across cities and counties.
Whether you’re buying a home or ready to refinance, our professionals can help.
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