Seattle Home Prices Climb 7.3% from Last Year, But Growth Slows This Quarter

Median home prices in Seattle rose 7.3% in the second quarter of 2026 compared to the same period last year, according to new data from the Northwest Multiple Listing Service. The city’s housing market continues to log gains, but quarter-on-quarter growth has eased, signaling a possible shift after two years of turbocharged competition.

That price movement matters as buyers and sellers navigate heightened borrowing costs, record-low inventory, and growing uncertainty about the broader U.S. economy. With news of turmoil in Europe, surges in commodity prices, and continued volatility in tech sector employment, real estate watchers say Seattle’s housing figures feel increasingly consequential for household budgets and neighborhood stability.

Capitol Hill and West Seattle Outpace City Average

Not all neighborhoods saw equal appreciation. Capitol Hill posted a 9% jump in median sale prices versus the second quarter of 2025—a spike driven by short supply on East Pike Street and increased demand for mid-rise condos near Cal Anderson Park. West Seattle also surged, with the area south of Alaska Junction registering an 8.4% year-on-year rise. Meanwhile, downtown condos were slower to move, in part due to sustained remote work trends and construction ongoing at several towers near Pike Place Market and Denny Triangle.

Windermere Real Estate reported that Lake City and Beacon Hill saw more modest gains, 4.1% and 5.2% respectively, as buyers pushed further out in search of affordability. Brokerages have pointed to a wave of first-time buyers using Seattle’s Community Homeownership Initiative, which offers down-payment assistance on homes priced under $650,000, as helping move entry-level inventory in Rainier Beach and Northgate.

Slower Growth Seen in 2026, But Demand Persists

Quarterly figures suggest some heat is coming out of the market. Between April and June 2026, the citywide median price edged up just 1.5% compared to January–March—a notable slowdown from the 2.8% quarterly bump recorded in early 2025. Redfin’s Seattle analytics team says the region had 1,965 homes for sale at the end of June, down 19% from a year earlier, but well above the tightest months of the post-pandemic surge in 2022. Mortgage rates hovering above 6.5% continue to limit move-up buying activity in neighborhoods like Ballard and Queen Anne.

A look at transaction data shows the typical detached home in Green Lake sold for $935,000 in June—$80,000 more than a year ago, but only $10,000 above the first quarter median. Sellers continue to receive above-asking price on over 30% of listings in Fremont and Ravenna, but open house traffic has cooled since the spring. The Seattle Office of Housing reports that planned openings for new affordable units in South Lake Union are on track for late fall, which could provide relief to renters but is unlikely to shift the ownership market in the near term.

What’s next for buyers and sellers? Agents say the summer will test the resilience of demand as potential sellers watch mortgage rate moves ahead of the Fed’s September decision. Industry insiders recommend buyers in competitive pockets like Madison Valley secure pre-approvals and move quickly when opportunity strikes. For sellers, brokers suggest pricing judiciously as days-on-market numbers nudge up across King County. With tech hiring stabilizing and local economic fundamentals still relatively strong, the Seattle market is showing its usual balance of unpredictability and opportunity heading into fall.