Seattle Housing Market Update: What the Numbers Mean for You This August

Seattle's housing market moved further toward balance in July, with buyers gaining more choices while sales activity slowed down a bit. Northwest MLS reported 24,888 active listings across the region, a 19.8% increase from last year. That put us at 3.74 months of inventory in the Seattle housing market in August, closer to the four to six months you'd typically call a balanced market than we've seen in a while.

I'm seeing that same shift play out here in Seattle's single family market. July ended with 1,631 homes for sale, 14.6% more than a year ago. At the same time, only 520 sales closed, a 21.6% decline from June and 15.3% down from last July. Pending sales fell too, both month over month and year over year. Buyers haven't disappeared. They're just spreading their attention across more listings and getting more selective about condition, location, and value.

Prices are the steadier part of this story. The median sold price for a Seattle single family home reached $990,000 in July, up 1% from June and 0.7% from a year ago. Across King County, the median for residential homes and condominiums was $879,500, while the overall Northwest MLS median was $640,000, down 1.5% from last July. Rising inventory has cooled the pace of the market, but it hasn't led to any broad decline in Seattle single family home prices.

Homes averaged 25 continuous days on market in July, and the average sale closed at 98% of its original list price. To me, that says there's more room for negotiation than sellers got used to during the most competitive years. Buyers may be able to negotiate on homes that are overpriced, need work, or have been sitting a while, but that opportunity isn't the same across every listing. Homes priced correctly and standing out from their competition can still attract plenty of attention.

None of this tells me buyers are abandoning the Seattle market or that prices are about to fall. It's a more neutral, more selective market where strategy matters on both sides. Buyers have more time and more choices right now, while sellers need to price with current data, prepare thoughtfully, and give buyers a clear reason to choose their home over the growing competition.

...so what does that mean for you in the Seattle housing market in August 2026?

• If you're thinking about buying, rising inventory is giving you more choices and more room to negotiate on homes that are overpriced, need work, or have been sitting a while. You've got more time to compare and less pressure to decide on the spot. Well priced homes in good condition are still moving quickly, so when you find the right one, be ready to act.

• If you're thinking about selling, you can absolutely still have a successful sale, but pricing and preparation carry more weight than they did a year or two ago. Buyers have more listings to compare, and they're paying close attention to condition and value. Homes that are priced to today's market, presented well, and marketed thoughtfully are the ones standing out and selling.

  
  

If you're weighing a move in either direction, I'd love to talk through what this market actually looks like for your specific situation and timeline.

Ready to Make a Move in the greater Seattle area?

I'm Carrie Watt, a Seattle local and real estate agent/founder with Rooted Northwest. I help people find their place here in Seattle and I'd love to help you, too. Start by clicking on a link below:

BUYER QUESTIONNAIRE SELLER QUESTIONNAIRE

Or book a time on my calendar

Follow along on Instagram: @carrie_watt and @rootednorthwest_co