Seattle Housing Market Analysis: Trends, Prices, and Outlook

Disclaimer: PropStream does not offer financial advice. This article is for informational purposes only. Consult a financial professional before investing in Seattle real estate.

As the most populous city in the Pacific Northwest, Seattle can be an attractive real estate market. The economy is strong, rental demand is stable, and home values are easing. This means those who buy now may see outsized appreciation once home values rise again.

Why Seattle Is a Market Worth Watching

Seattle’s housing market is characterized by high property values, constrained supply, and a tech-driven economy, a recipe for long-term appreciation and steady cash flow. Tech giants like Amazon, Microsoft, and Zillow all have headquarters here, attracting workers from all over.

In this article, we’ll dive into Seattle’s housing market in more detail to show what makes it attractive for investors and agents. Along the way, we’ll explain how you can use PropStream to track market shifts at the city, zip code, and neighborhood level.

Home Sales Slow, but Signs of Stabilization Are Emerging

In December 2025, only 592 homes were sold in Seattle. While that’s slow compared to historical averages, it’s actually up 1.7% year-over-year. This suggests the market may be stabilizing after years of affordability pressures and buyer hesitation.

Of course, 592 home sales are also slow compared to the rest of the year, but that’s due to the typical winter slowdown. Fewer buyers want to move when it’s cold, and kids are in school.

Pro Tip: With PropStream, you can track sales trends by neighborhood, which may reveal areas rebounding faster than citywide averages. Just type in an area in our platform’s search bar to get immediate price estimates, comps, and other real estate data.

Seattle’s Seller’s Market Is Gradually Easing

Meanwhile, housing inventory levels are easing. In December 2025, there were 6,356 active listings in the entire metro area, the highest winter season level since before 2020.

This could be the result of mortgage rates gradually falling over the last few years. As of 29 January 2026, the average 30-year fixed rate across the U.S. was 6.1%, down from a peak of 7.79% in October 2023. As rates fall, homeowners may feel more comfortable parting with their pandemic-era low rates by listing their house for sale, boosting inventory.

For buyers, this means more home options to choose from, giving you more negotiation leverage with sellers and putting downward pressure on home prices.

Pro Tip: The best deals are often off-market. Use PropStream to filter off-market properties by potential selling motivations, such as bankruptcy, pre-foreclosure, and high equity. Such homeowners may be willing to sell at a significant discount.

Home Prices Remain Elevated Despite Market Cooling

Seattle housing prices overall are still high. In December 2025, the median home sale price was $785,000, down 6.5% from a year prior but still well over the national median of $428,071. This means the barrier to entry can be relatively high for first-time investors and buyers.

For those with capital to invest, however, the key is to buy below market value. On top of buying off-market, you can monitor price trends. For example, price reductions for certain properties paired with longer days on market can signal that the seller may be open to compromise.

In December 2025, 14.5% of homes sold above their listing price, while 19.9% homes saw their price drop, a 3.7% year-over-year increase. Meanwhile, the median days on market was 42, a year-over-year increase of 3 days. Savvy investors who spot struggling listings may score deals.

Strong Rental Demand and Investor Considerations

On top of long-term home appreciation, Seattle enjoys a strong rental sector driven by the demand for young tech workers and the relatively high cost of buying a home.

With a population of about 780,000 and a homeownership rate of 43.7%, Seattle has a significant number of rental properties with a median gross rent of $1,166. Investors seeking strong cash flow should focus on neighborhoods with low vacancy rates and keep their operating and financing costs below their expected rental income.

Ideally, you should find a Seattle property that generates steady cash flow and appreciates.

What the Data Suggests for the Seattle Housing Market in 2026

Given Seattle’s mixed signals across home prices, inventory, and demand, it’s unclear what 2026 will bring. However, one thing is clear: The best investors monitor the market to seize opportunities when they come.

If mortgage rates continue to fall, you may plan for more inventory to hit the market. If home inventory increases, you can expect more home selection and negotiation power as a buyer.

Ultimately, ongoing market monitoring is more effective than relying on a one-time forecast. And with accurate housing data from PropStream, you can stay on top of the latest trends.

PropStream lets you track pricing, inventory, and demand trends across Seattle neighborhoods and uncover off-market opportunities before they become more widely visible.