The Federal Reserve has raised its key interest rate by 0.25%, bringing it to a range of 3.75%-4%—the first increase since July 2023. As a Managing Broker who’s worked through a variety of market shifts here in the Puget Sound area, I know how closely these decisions can impact both buyers and sellers. The Fed has also indicated that another hike could still be on the horizon, given that inflation remains above their 2% target. The next opportunity for a rate reassessment will be at the Fed’s meeting on October 27-28, 2026. For those navigating their next move, understanding how rate changes shape affordability and strategy is key. My focus is always on helping you make informed decisions—grounded in local knowledge and guided by experience—no matter what the numbers say.

Over the past decade, the landscape of new single-family homes in the U.S. has changed in ways that matter for anyone looking to buy. On average, new homes have become smaller—shrinking from 2,700 square feet to 2,400 square feet—while the price per square foot has climbed by about 72%. By 2025, one in four new single-family homes sold measured under 1,800 square feet, compared to about one in six a decade ago. At the same time, homes with 3,000 square feet or more became less common, dropping from roughly one in three to one in five.

Builders are adapting, turning to smaller home designs to help keep prices within reach as land, labor, and material costs rise—and as mortgage rates hover around 6% to 7%. For many first-time and budget-conscious buyers, these more compact homes can ease the burden of down payments and monthly expenses, even as the higher price per square foot reminds us that affordability remains a challenge.

Having guided hundreds of clients through changing markets in the Puget Sound region, I know how important it is to balance size, cost, and long-term value. My approach is always centered on matching each client with the right home for their needs—whether that means making the most of a smaller footprint or navigating the realities of today’s pricing. If you have questions about how these trends might shape your next move, I’m here to provide the clarity and guidance you deserve.

As someone who has spent over 16 years helping buyers and sellers navigate the Seattle and Puget Sound real estate markets, I’ve been keeping a close eye on shifting search patterns. Recent research shows that in spring 2026, about 84% of Seattle home shoppers explored listings outside our metro area—a figure that places Seattle among the top cities nationally for out-of-market home searches. This trend isn’t just a fluke. It mirrors what I hear every day from clients weighing the cost of local homeownership against possibilities farther afield. Affordability remains a key factor behind these broader searches, as buyers thoughtfully compare their options before making a move. The study, which analyzed online listing views, highlights how openness to new locations is becoming more common—an insight that resonates with the careful, strategic approach I encourage in every client interaction. Seattle continues to play a central role in this affordability-driven shift, and I’m committed to providing the guidance and market perspective buyers need, whether their journey keeps them here or leads them to new communities.

Keeping a close eye on the September housing signals, I’ve noticed a few key shifts worth sharing with my Puget Sound clients and friends. Pending home sales just turned slightly negative year-over-year, breaking an eight-month streak of gains—higher borrowing costs have definitely cooled some buyer momentum lately. Contract signings have softened, homes are taking about 60 days to sell, and we’ve seen mortgage rates rise from around 6% in late Q1 to the high-6% range now.

On the plus side, buyers are gaining a bit more leverage: the median list price dipped to $424,500, nearly 20% of listings saw price cuts, delistings dropped compared to last year, and active inventory inched up about 4%. Still, national inventory remains roughly 11% below typical pre-pandemic levels, reminding us there’s an underlying housing shortage even as some buyers pause.

Experts continue to watch seller delistings, evolving pricing strategies, and whether regional differences will narrow as everyone adapts to these firmer borrowing costs. With over 16 years guiding clients through all market cycles, I know the value of experience and local insight—especially now, when thoughtful strategy and steady communication matter more than ever.

For many Washington homebuyers, saving for a 20% down payment has turned into a marathon: it now takes a household earning the median $104.8K income an average of 11.5 years to reach that milestone. Home values have soared across our state—typical prices have climbed to $604.1K, a rise of over 96% in the past decade—while median incomes have gone up just 56%. For those earning minimum wage, the path is even steeper: reaching that 20% down payment target could take nearly 34 years, which really highlights the growing gap in affordability. Much of this pressure has been driven by Seattle’s tech-fueled demand, plus the influx of high earners attracted by our lack of state income tax. As a result, more buyers are looking north and south to Snohomish and Pierce counties. Yet even as people stretch their commutes, prices keep pace, making it just as challenging to get a foothold. After 16 years of guiding clients through these shifting landscapes, I know that understanding the realities—and the opportunities—of our market is the first step toward making smart, confident decisions about your next move.