The Greater Seattle and Puget Sound housing market is entering fall 2026 with a noticeable shift from the highly competitive conditions buyers have experienced in recent years. More homes are coming onto the market, buyers have more opportunities to compare properties, and sellers are facing a more selective audience. According to the latest Northwest Multiple Listing Service (NWMLS) data, there were 24,675 active listings across the NWMLS service area at the end of August, a 22% increase from August 2025. At the same time, closed sales declined 7.6% year over year. The regional median sales price for homes and condominiums was $635,000, down 2.3% from a year earlier. For buyers, this means more breathing room. For sellers, it means preparation, pricing and presentation matter more than ever. King County: More Inventory, More Negotiating Room King County remains one of the most expensive markets in the region, with an August median sales price of $845,000. That's down 3.4% from August 2025. More significantly, King County had approximately 4.3 months of inventory in August, compared with 2.9 months a year earlier. Four to six months of inventory is generally considered a balanced market, suggesting that King County is moving away from the seller-dominated conditions that have characterized much of the past several years. For buyers, additional inventory can mean more choices and greater opportunity to negotiate. Sellers, meanwhile, need to understand that buyers may be comparing their home against considerably more competition. Snohomish County Continues to See Strong Inventory Growth Snohomish County has experienced one of the largest increases in available homes in the region. Active listings were up 39.3% year over year in August. The August median sales price was $724,500, making Snohomish County an important option for buyers looking for alternatives to King County while still remaining within the broader Puget Sound employment and transportation network. Snohomish County had approximately 3.64 months of inventory at the August sales pace. Pierce County Remains Relatively Tight Pierce County continues to offer a somewhat different market dynamic. It had approximately 3.33 months of inventory in August, lower than King County's 4.3 months. That means buyers may still encounter competition for well-priced, desirable properties, particularly those offering good condition, convenient locations and attractive price points. What This Means for Buyers Today's market can offer buyers more flexibility than they've had in recent years. With inventory expanding and sales activity slowing, buyers may have more time to evaluate a home carefully rather than feeling pressured to make an immediate decision. There may also be more opportunities to negotiate price, inspection terms, closing dates or other elements of a transaction. That doesn't mean every home is a bargain. Desirable properties that are correctly priced and well presented can still attract strong interest. The key is preparation. Buyers should understand their financing options, know their comfortable price range and be ready to act when the right property appears. What This Means for Sellers For sellers, the changing market makes accurate pricing especially important. When buyers have more choices, an overpriced home can sit on the market while competing properties attract attention. Today's sellers should consider the condition of their property, recent comparable sales, current competition and the expectations of today's buyers. Professional photography, thoughtful preparation and a marketing strategy that highlights a home's strongest features can also make an important difference. Most importantly, sellers should work with their broker to establish a realistic pricing strategy before going on the market—and be prepared to respond to changing market feedback. Looking Ahead to Fall The Puget Sound market appears to be moving toward a healthier balance between buyers and sellers. Inventory is substantially higher than it was a year ago, while prices have softened modestly rather than experiencing a dramatic decline. At the same time, higher borrowing costs continue to influence how much buyers can comfortably spend and how quickly they make decisions. The result is a market where local knowledge matters. Conditions can vary significantly from one neighborhood to another, and countywide statistics don't tell the entire story. A home in Seattle, the Eastside, North King County, Snohomish County or Pierce County may experience a very different level of demand depending on its location, price range, property type and condition. The Bottom Line The Greater Seattle and Puget Sound real estate market isn't standing still—it's evolving. Buyers have more choices. Sellers need to be more strategic. And well-priced, well-prepared homes continue to stand out. Whether you're considering buying, selling or simply trying to understand what your local market is doing, a conversation with an experienced local real estate professional can help put the numbers into perspective. At Horizon Real Estate, our brokers bring local market knowledge and years of experience helping buyers and sellers navigate changing conditions throughout the Greater Seattle and Puget Sound region. Market statistics referenced above are based on the latest August 2026 data released by Northwest Multiple Listing Service. Market conditions can vary substantially by neighborhood, property type and price range.

May & June Market Outlook As we move through late spring into early summer, the Puget Sound market is settling into a more balanced and strategic environment compared to the high-intensity markets of prior years. Inventory has increased notably across the region, giving buyers more options and shifting some leverage back into their hands. In King County alone, active listings have risen significantly year-over-year, signaling a loosening (though still competitive) market. At the same time, pricing has remained relatively stable overall, with only modest year-over-year movement depending on property type—highlighting that while demand has softened slightly, values are holding. Buyer behavior continues to reflect caution. Many are taking longer to make decisions due to affordability concerns and broader economic uncertainty, even as mortgage rates hover in a more manageable range than recent highs. What Brokers Can Expect in May & June More inventory = more competition among sellers Buyers regaining negotiating power, especially on homes that sit longer Continued activity for well-priced, move-in-ready homes, which can still attract multiple offers Longer days on market overall, with a clearer divide between “dialed-in” listings and those that miss the mark A more normalized seasonal peak—active, but not frenzied The market remains technically seller-leaning in many areas, but is transitioning toward balance Homes are still selling relatively quickly (often within a couple of weeks), though not as fast as last year Pricing strategy has become critical—many sellers are opting to price accurately upfront rather than reduce later  

WHERE DOES THE MONEY COME FROM FOR THE MORTGAGE LOANS? In the olden days, when someone wanted a home loan they walked downtown to the neighborhood bank or savings & loan. If the bank had extra funds lying around and considered you a good credit risk, they would lend you the money from their own funds. It doesn’t generally work like that anymore. Most of the money for home loans comes from three major institutions: Fannie Mae (FNMA - Federal National Mortgage Association) Freddie Mac (FHLMC - Federal Home Loan Mortgage Corporation) Ginnie Mae (GNMA - Government National Mortgage Association) This is how it works: You talk to practically any lender and apply for a loan. They do all the processing and verifications and finally, you own the house with a home loan and regular mortgage payments. You might be making payments to the company who originated your loan, or your loan might have been transferred to another institution. The institution where you mail your payments is called the servicer, but most likely they do not own your loan. They are simply servicing your loan for the institution that does own it. What happens behind the scenes is that your loan got packaged into a pool with a lot of other loans and sold off to one of the three institutions listed above. The servicer of your loan gets a monthly fee from the investor for servicing your loan. This fee is usually only 3/8ths of a percent or so, but the amount adds up. There are companies that service over a billion dollars of home loans and it is a tidy income. At the same time, whichever institution packaged your loan into the pool for Fannie Mae, Freddie Mac, or Ginnie Mae, has received additional funds with which to make more loans to other borrowers. This is the cycle that allows institutions to lend you money. What Freddie Mac, Ginnie Mae, and Fannie Mae may do after they purchase the pools is break them down into smaller increments of $1,000 or so, called mortgage-backed securities. They sell these mortgage-backed securities to individuals or institutions on Wall Street. If you have a 401K or mutual fund, you may even own some. Perhaps you have heard of Ginnie Mae bonds? Those are securities backed by the mortgages on FHA and VA loans. These bonds are not ownership in your loan specifically, but a piece of ownership in the entire pool of loans, of which your loan is only one among many. By selling the bonds, Ginnie Mae, Freddie Mac, and Fannie Mae obtain new funds to buy new pools so lenders can get more money to lend to new borrowers. And that is how the cycle works. So when you make your payment, the servicer gets to keep their tiny part and the majority is passed on to the investor. Then the investor passes on the majority of it to the individual or institutional investor in the mortgage backed securities. From time to time your loan may be transferred from the company where you have been making your payment to another company. They aren’t selling your loan again, just the right to service your loan. There are exceptions. Loans above $333,700 do not conform to Fannie Mae and Freddie Mac guidelines, which is why they are called non-conforming loans, or “jumbo” loans. These loans are packaged into different pools and sold to different investors, not Freddie Mac or Fannie Mae. Then they are securitized and for the most part, sold as mortgage backed securities as well. This buying and selling of mortgages and mortgage-backed securities is called mortgage banking, and it is the backbone of the mortgage business.

PLAN OF ACTION Analyze why you are selling - If you understand your motives, you will be able to better negotiate and to get what it is that you want, whether it be a quick sale, high price, or somewhere in the middle. Prepare your home for the buyer - Maximize the strengths of your property and fix up its weaknesses. You want the buyer to walk away from your home with a lasting good impression. Find a good real estate agent that understands your needs - Make sure that your agent is loyal to you, and can negotiate to help you achieve your goals. In addition, they should be assertive and honest with both you and the buyer. Be prepared for negotiation - Learn and understand your buyer’s situation; what are their motives? Can you demand a big deposit from them? Try to lock in the buyer so that the deal goes through. Negotiate for the best price and the best terms - Learn how to counter offer to get maximum value from every offer. Make sure the contract is accurate and complete - Be honest with your disclosures; you do not want to lose the deal because you were lying or diminishing your home’s defects. Insist the buyers get a professional inspection. This will protect both you and the buyer.

IS BUYING A HOME STILL A SMART PLAN With the burst of the housing bubble, credit crisis, and millions of foreclosures across the country, you may wonder if buying a home is such a good idea after all. However, it’s important to consider all of the facts. The important message to take away from these events is not that buying a home is a bad idea, but that you must be smart about buying your home. The housing market, like every type of market, unavoidably has its ups and downs. That doesn’t mean buying a home is a bad investment. As a long-term investment, homeownership is still one of the best investments for individual households. Historically, real estate has consistently increased in value, despite shorter periods of depreciation due to local markets and/or national economic conditions. The data shows that homes generally appreciate about 5% per year. Savings & Investment Five percent may not seem like a great return on investment, but you have to think about it in the context of the situation. For example, let’s say you put 10% down on a $200,000 house. That’s a $20,000 down payment, or initial investment. At a 5% annual appreciation rate, your $200,000 home would gain $10,000 in value during the first year. Earning $10,000 on an investment of $20,000 is a whopping 50% return. For further perspective, let’s say instead of spending that $20,000 on a down payment, you invested it in the stock market. With a 5% return, you would gain only $1,000 in profit. Tax Benefits So now you’re saying that a home may have a higher return, but that’s before you consider all of the costs of home ownership, such as taxes, etc. Well, think of it this way: your property taxes as well as the interest on your mortgage are both tax deductible. You can deduct those costs from your income, thus reducing your overall taxable income. In other words, the government is subsidizing your home. Other Benefits It’s easy to get carried away with all of the economic reasons for home ownership, but it’s important to remember that not every reason is financial. Have you ever wanted to paint the walls of your apartment? Well when you’re renting, you can’t. Has anything in your apartment ever needed updating, but the landlord refused to do it? When you own a home, you can make the space yours in almost any way you want. And you benefit when you do home improvements, both financially and psychologically. Homes generally have more space, for storage, living, etc. than other living arrangements. Not to mention that you have space outdoors for barbecuing, pets, and kids. Owning your home carries with it a sense of pride, accomplishment, and even an elevated social status. So when you’re considering buying a home, consider the broad range of benefits that owning a home can have. And always make sure you have an experienced real estate agent and loan officer to help make sure you’re getting a home that is right for you, both financially and psychologically.