Mortgage rates are improving, and buyers in Seattle finally have more options — but many are still wondering whether now is the right time to buy.
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Seattle’s 2026 housing market is sending mixed signals for home shoppers. Mortgage rates have come down, giving buyers more buying power, yet confidence hasn’t fully returned. Job market uncertainty and rising inventory mean many buyers are taking a slower, more cautious approach before making a move.
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Affordability Is Improving — But Many Buyers Still Feel Hesitant
Mortgage rates recently dipped into the low 6% range, down from the mid-6% levels that dominated 2024 and 2025. That change alone can increase what buyers qualify for by about 8%–11%. For example, if a buyer qualified for a $750,000 home last year at 7%, today they might afford around $820,000.
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For buyers, that can mean more flexibility — whether that’s more space, a better location, or a monthly payment that feels more manageable.
Even so, many Seattle residents remain cautious. Higher rent, ongoing economic headlines, and broader uncertainty are leading some buyers to wait until conditions feel more stable before committing to a home purchase.
Job Market Headlines Are Making Buyers More Cautious
Seattle’s job market — typically one of the strongest in the country — slowed noticeably in 2025. Headlines around job cuts at companies like Amazon and Meta have added to buyer hesitation.
Even buyers with stable employment say they are watching the economy more closely. Instead of rushing into decisions, many are taking longer to tour homes, compare options, and wait until they feel more certain about their financial outlook.
More Homes Are on the Market, but Sales Are Slower
Similar to the national trend, Seattle is seeing slower home sales even as inventory grows. More than 70% of major U.S. markets now have more homes for sale than they did in 2019, including Seattle.
For buyers, this shift brings advantages. More listings mean more quick move-in options, more incentives, and more room to negotiate than in recent years.
What this means for buyers: With more homes available and fewer bidding wars, buyers may have more time to make decisions and more leverage when negotiating price or incentives.
Where Buyers Are Finding the Best Options
Opportunities still exist for buyers, but where they’re finding success varies by budget and location. Recent data shows that different price ranges are performing very differently across the region.
For first-time buyers or buyers prioritizing affordability (below ~$725K) These homes are mostly townhomes and smaller single-family homes, with nearly half under 2,000 square feet. Activity has been stronger in Snohomish and Pierce Counties, and entry-level homes remain popular among buyers focused on affordability.
For buyers looking to move up or gain more space ($725K–$1.05M) This range is predominantly single-family homes, with many communities priced in the mid-$800Ks. The segment includes master-planned communities like Tehaleh and Ten Trails, which continue to attract interest due to amenities and lifestyle offerings.
For luxury buyers ($1.05M+) Luxury homes are heavily concentrated in King County and include a mix of attached and detached homes. About one-third of sales in this segment exceed $1.5 million.
Younger Buyers Are Waiting Longer — But Not Leaving the Market
Millennials and Gen Z together make up nearly half of Seattle’s population. These groups include both today’s first-time buyers and tomorrow’s move-up buyers, but many are temporarily pressing pause.
The hesitation reflects caution rather than a lack of demand. Many younger buyers still plan to purchase homes, but are waiting for more stability before moving forward.
Looking Ahead: Stability May Bring Buyers Back Quickly
Housing demand in Seattle hasn’t disappeared — it’s simply waiting for steadier footing. Factors to watch include job market changes, tech hiring trends, immigration policies affecting the workforce, and return-to-office patterns.
For buyers who are financially ready, today’s market may offer an opportunity: more choices, more incentives, and less competition than during the peak years. If economic conditions stabilize, pent-up demand could return quickly.
These insights were pulled from Zonda’s latest research presented at Seattle Dealmakers in late January.
