Local Market Update – February 2026 - Windermere Capitol Hill

Local Market Update – February 2026

A More Balanced Start to the Year as Inventory Grows

The Puget Sound housing market opened the year on more even footing. Inventory levels rose across the region, buyer activity began to reappear after the holidays, and prices continued to adjust in many areas. While affordability remains a challenge, improved selection and early signs of buyer engagement are starting to shape a more balanced market.

As we move further into the first quarter, the interaction between supply and buyer response will be critical to watch. Early momentum suggests some buyers are stepping back in as conditions slowly improve.

King County: Inventory Expands as Buyers Reemerge

In January, King County’s median single family home price dipped 1% from last year and 6% from December, landing at $850,000. Active listings climbed 31% year over year, giving buyers more options than they had at the same time last winter.

Buyer interest showed renewed energy coming out of the holidays. Pending sales jumped 37% from December, pointing to early spring momentum. Closed sales fell 4% from last year, reflecting a slower pace of completed transactions. In the condo market, the median price declined 16% to $502,475 while inventory rose 18%.

Seattle: Signs of Balance Continue to Build

Seattle entered 2026 with growing signs of market balance. The median residential sold price slipped 1% year over year and 7% month over month to $850,000. Inventory rose 30% from last January, expanding choices for buyers.

While pending sales were lower than a year ago, the 36% increase from December suggests buyers are beginning to return. Closed sales remained steady compared to last year, pointing to consistent underlying demand. Seattle condo prices fell 19% year over year to $557,000 as listings increased 22%.

Eastside: Buyer Activity Strengthens Amid Rising Supply

The Eastside market showed clear signs of transition. The median residential sold price declined 16% year over year to $1,435,000, while active listings surged 49% from last January and rose 19% from December.

Buyer activity stood out. Pending sales increased 26% year over year and jumped 69% month over month, suggesting improved pricing and selection are drawing buyers back. Closed sales edged 4% higher than last year despite the crowded market. Condo prices slipped 15% to $628,000 as inventory increased 21%.

Snohomish County: More Options, Slower Closings

In Snohomish County, the median single family home price fell 7% year over year and 6% from December to $715,000. Active listings rose 39% from last year and 10% month over month.

Buyer interest began to show early improvement, with pending sales up 29% from December. Closed sales declined 24% year over year, reflecting a thinner pipeline of completed deals. Condo prices dropped 18% to $470,000 while listings increased 16%.

Looking Ahead

As the market progresses through the first quarter, inventory levels and buyer response will remain key indicators. Rising pending sales across several areas suggest buyers are slowly re entering the market as pricing and selection improve.

Whether this momentum continues will depend largely on interest rate stability and overall economic confidence. In a market shaped by nuance and local conditions, a Windermere advisor provides the insight and guidance needed to navigate today’s real estate landscape with confidence.