Market Update — September 2026
We firmly believe timely and relevant data is key to making good decisions. To this end, we are committed to providing our community and clients with actionable data and insights about the local real estate market.
Local real estate market
With the data from August 2026 in, here’s an overview of the key aspects of the local real estate market. The real estate data below is collected from Northwest Multiple Listing Service (NWMLS).
Median price: The chart below shows the latest median sales prices of homes over the past 5 years in the Greater Seattle area over the past five years:
Homes sold: 5,861 homes and condominiums were sold in August 2026, representing a 7.6% decrease year-over-year (compared to 6,341 in August 2025). The median price stood at $635,000, showing a 2.3% decrease YOY. This total sales volume translates to a combined dollar value of about 4.59 billion (4.20 billion for residential homes and 391.5 million for condominiums)
Months of inventory: Given the current pace of sales, it would take approximately 4.21 months for every listed home to sell. To put this number in perspective, a balanced market is generally considered to have 4 to 6 months of inventory. The counties with the lowest months of inventory were Kitsap (2.75), Pierce (3.33), Thurston (3.58), Snohomish (3.64), and Clallam (3.81), indicating tighter market conditions in those areas.
Median price: The counties with the highest median sales prices were San Juan ($914,500), King ($845,000), and Snohomish ($724,500), while the lowest median prices were recorded in Ferry ($202,500), Adams ($278,000), and Columbia ($315,000).
New listings: 9,546 new listings were added to the NWMLS database in August 2026, representing a year-over-year increase of 9.3% (compared to August 2025, when 8,730 listings were added).
Mortgage rates: Higher mortgage rates continued to influence buyer activity during the month.
Primary Mortgage Market Survey — Average 30-Year Fixed Mortgage Rates over the past 5 years (Source: Freddie Mac)
Broader U.S. economy
Fed Hikes Rates in Unanimous Vote: As widely expected, the Federal Reserve raised its benchmark Federal Funds Rate by 25 basis points. It was the Fed’s first rate hike in three years and its first rate change this year, following five consecutive meetings where rates remained unchanged. Keep in mind that the Fed Funds Rate is the overnight borrowing rate for banks and is not the same as mortgage rates.
New Home Construction Cools: New home construction slowed in August, with housing starts falling 2.6% from July to an annual pace of 1.28 million homes – below expectations. Housing starts measure homes where construction has begun. Building permits, which can offer a glimpse into future construction, also declined 2.7% from July, reaching an annual pace of 1.39 million permits. Builders remain cautious as well. The National Association of Home Builders Housing Market Index fell three points in September to 32. A reading below 50 means more builders view market conditions as poor than good. Higher mortgage rates, labor shortages, and elevated construction costs continue to weigh on builder confidence.
