Seattle Market Update (Sept 2026)

If you’ve felt like the Seattle market shifted this summer, you’re right. August numbers are in, and they confirm what I’ve been seeing on the ground. We are in the most balanced market this city has had in ten years. Here’s what that means, and why it matters whether you’re buying, selling, or just keeping an eye on your home’s value.

The Big Picture.

Inventory is up. Seattle had 1,510 active single-family listings at the end of August, up 27% from a year ago. Months of supply reached 3.2, up 48% from last year and the highest August reading since at least 2017. For context, anything under 2 months is a seller’s market, 2 to 4 is balanced, and 4+ favors buyers. Two years ago we were at 1.4.

Prices have adjusted. The median closed price was $920,000, down 8% from $1,000,000 last August. That puts us roughly back where we were in 2024.

Demand is cooling, not collapsing. Closed sales are down only 5% over the past 12 months. Buyers are still buying. The difference is that they now have far more to choose from, and that changes who holds the negotiating power.

This isn’t a crash. It’s a rebalancing. Homes are still selling, but strategy matters more than it has in years.

A Market that has split into 2

What stands out most in the August data is that there are now two very different experiences happening at once.

The compelling homes are still flying. 23% of August sales closed above list price, typically about 4% over asking, in an average of just 7 days. More than half of all sales (54.8%) went under contract in less than 15 days at full price.

Everything else is negotiating. 41% of sales needed a price reduction first, and those homes averaged 83 days on market. Another 19% sold below list.

Timing has a real cost. Homes that sold within 15 days got 100% of their original list price. Homes that sat 90+ days got 88.8%. On a $920,000 home, that gap is roughly $100,000.

If you’re looking to sell in the fall of 2026

The question I hear most is, “What do I need to do to sell?” My answer: your home needs to be one of the most compelling options available, based on price, condition, and location.

When inventory was tight, buyers overlooked a dated kitchen or an awkward layout because they had no alternatives. Today they have 27% more options than a year ago. Any shortcoming now needs to be balanced by perceived value.

A few things to keep in mind:

  • Reset your anchor. If your neighbor sold for $1M last year, that number may not be your number today. Sellers who price to 2025 end up chasing the market down.

  • Presentation matters again. Preparation, staging, and marketing are what put you in the “sold in a week” group rather than the “price cut at day 45” group.

  • Protect the deal. About 15% of pending sales are failing to close, near a ten-year high. Vetting a buyer’s financing and running a tight transaction matter more than they did two years ago.

The good news is that the market rewards realistic, well-positioned sellers quickly.

🏡 buying on the other hand is ripe for opportunity

This is the most leverage buyers have had in years. Selection is at a ten-year high, pending sales are down 14% year over year, and nearly 60% of sellers ultimately negotiated.

The math has also moved in your favor. Buying the median home this August instead of last August costs $80,000 less and lowers the monthly principal and interest by $462 (about $5,541 a year), even with rates slightly higher at 6.67%.

Move-up buyers have an unusual window. The biggest drop in sales came in the $1M to $1.75M range, down 26% to 33% year over year in August. That means less competition right where many move-up buyers are shopping.

One caution: leverage applies to the average listing, not the standout. The best-priced, best-presented homes are still going in about a week, often over asking. When you find the right one, be ready to move.

At the higher end

QA

Seattle homes priced at $2M and above held up well for most of the year. Closed sales in that range are down about 5% year to date, which tracks the overall market. August was quieter, though: 37 closings above $2M compared with 59 last August. For luxury buyers heading into fall, that likely means more room to negotiate on homes that aren’t perfectly positioned.

Neighborhood matters more than the headline

Citywide numbers only tell part of the story. Several areas have moved further than the average:

  • Queen Anne / Magnolia: 4.1 months of supply, now in buyer’s-advantage territory

  • North Seattle: 3.7 months, up from 1.7 a year ago

  • Ballard / Green Lake: 3.2 months, up from 1.8 a year ago

Before you set a strategy, look at what’s happening on your specific street, at your specific price point.

 

Bottom Line

Inventory is at a ten-year high, prices have come down 8%, and buyers finally have real negotiating power. Even so, the homes that stand out on price, condition, and location still sell in a week.

This fall, strategy will shape your outcome more than the market will.

If you’d like to know what this means for your home or your search, just reply to this email. I’m always happy to walk through the numbers for your neighborhood.

 

Katie Rose Browne, Windermere Real Estate

Source: Northwest Multiple Listing Service, residential only, August 2026. Compiled by Windermere/East and Windermere Mount Baker.