Potentially good news for home buyers; there are more homes on the market, which means more choices and a little less pressure when it comes to making a decision. After years of rapid price increases, home prices are starting to level out. In fact, across the Northwest MLS service area the median home price in September dipped slightly to $630,700, down 0.7% compared to last year and 3% lower than August. This trend is also showing up across King, Snohomish, and Pierce counties.
Interest rates have come down a bit recently, but not enough to make a big impact. Still, we’re seeing signs that the market is balancing out after several years of big swings in both price and demand.
One of the biggest changes for sellers? There are simply more homes available. At the end of September, there were over 20,000 active listings in the Northwest MLS system, that’s a 27% increase compared to the same time last year. This boost in inventory could make it easier for buyers to find the right home.
“House prices in the NWMLS service area have generally been sluggish in response to high interest rates,” said Steven Bourassa, Director of the Washington Center for Real Estate Research at the University of Washington. “Initially, high interest rates discouraged both sellers and buyers, but in recent months, sellers have been listing properties at a faster rate than buyers have been purchasing them. To some extent, these changes may reflect typical seasonal fluctuations, but at some point the laws of supply and demand may prevail, and prices may lose some of their stickiness.”
Looking ahead, home prices are expected to stay relatively flat through the rest of the year, with a potential uptick in early 2026 as the spring buying season kicks off. However, the pace of price growth could be more gradual when compared to the last few years, as affordability remains a key concern.