Seattle Real Estate Market Update | January 2026

Seattle’s housing market kicked off 2026 with a mix of stability, resilience, and cautious optimism. Mortgage rates, a major driver over the past few years, have eased and stabilized around 6%, briefly dipping just below that mark. While there has been speculation about the government buying mortgage-backed securities to push rates lower, nothing has happened yet. Even so, rates near historical averages have helped slow the market into a more sustainable pace after years of rapid appreciation.
Despite concerns about layoffs and people moving out of the region, both Seattle and Bellevue ended 2025 on a strong note. December set record median sales prices for those cities for that month specifically. Bellevue’s median price rose 5.4% year over year to about $1.95M, while Seattle edged up 1.1% to roughly $885K. Prices aren’t surging like they once did, but they are holding steady and continuing to move forward.
Not every segment of the market is performing the same. Detached single-family homes remain the strongest, while townhomes and especially condos have lagged behind. That softer demand has created opportunities for buyers, including more room to negotiate on price, inspections, and closing costs. This contrast highlights why headline numbers don’t always tell the full story of what’s happening on the ground.
Homes in Seattle sold for about 99% of list price in December, with Bellevue close behind at 98%. Days on market have crept up, averaging 38 days in Seattle and 46 in Bellevue, indicating a more competitive environment for average homes, even as standout properties still attract quick sales and multiple offers. Buyers have leverage, but it’s not a giveaway market.
Inventory remains the key metric to watch. While there are significantly more homes on the market than a year ago, supply is shrinking as listings, pending sales, and closings rise together. Seattle currently sits at about 1.6 months of supply and Bellevue at 1.4 months, still firmly in seller’s market territory, though more balanced than in recent years.
Looking ahead, the Seattle market is expected to follow a fairly normal seasonal pattern in 2025, with activity picking up in spring, leveling in summer, and slowing toward winter. The biggest wildcard is interest rates. A meaningful drop would likely bring many sidelined buyers back into the market and accelerate price growth. Without that, expect steady, sustainable movement rather than dramatic swings.