Updated forecast now sees existing-home prices rising ~1% by end-2026, below the earlier ~2% call, as softer sales and more listings ease pressure.
Mortgage rates were still forecast near 6% through year-end, but stronger household income growth and slower prices were expected to trim the typical payment yearly.
Inventory was expected to grow, though the outlook was cut to ~4%; single-family starts were revised lower, with 2026 construction seen near 960K homes.
Existing-home sales were projected to rise ~1% in 2026 to ~4.1M, after a slow first half; activity stabilized in Early-Q2 and improved in Mid-Q2.
Sellers were adjusting with more realistic asking prices, helping limit price cuts, while rents were expected to edge down as new rental supply expanded.

Seattle’s challenge is not limited inventory. The bigger issue is fit: too many available homes sit above the price points many local buyers can manage.
For Seattle households in the middle-income range, suitable for-sale options remained scarce, leaving a meaningful gap between what buyers can afford and what listings offer.
A newer alignment measure helps explain the mismatch by comparing listing distribution with household incomes, showing when available homes are not proportionate to earning power.
Seattle’s path forward requires more than added supply. The market needs homes built and priced for entry-level and middle-market buyers, not just higher-end inventory.
Until Seattle adds more attainable options, headline gains in affordability or inventory alone may do less to connect residents with realistic homeownership opportunities.

In Mid-Q2 2026, the builder sentiment index ↑3 to 37, topping the 34 estimate while showing modest improvement from the prior reading.
Sales conditions ↑3 to 40, buyer traffic ↑3 to 25, and 6-mo sales expectations ↑3 to 45, giving builders better near-term signals.
Builders are slightly less aggressive with outright price cuts: ~32% reduced prices, versus ~36% in Early-Q2, though avg. discounts widened to ~6%.
Sales incentives remain elevated near ~60%, marking 14 straight months at that level as affordability challenges keep buyers value-focused in new-home negotiations.
An industry official said proposed housing legislation could increase national housing supply and ease builder concerns, even as long-term rates challenge demand.

Seattle home values ~$731K, will ↑ 0.4% in 2026.

Mortgage payments $4,567, dropping $28 by late 2026.

Affordability improves to 44.9% of income, still high for buyers.

Coastal city prices moderate slightly with slow growth.

Income gains slightly offset mortgage pressures for buyers.

In Late-Q2, US asking prices fell ~3% yearly, the eighth straight decline, while pending sales rose ~4% yearly for a seventh straight month.
The national median listing price reached $430K, active inventory topped 1.1M homes with yearly growth, and new listings also increased, expanding buyer choice.
Homes spent a median 53 days on market, matching the prior year and resembling prepandemic timing, a sign transaction activity had stabilized.
Sellers appeared to price more realistically: ~19% of active listings had reductions in Late-Q2, down ~2 points yearly, while cancellations stayed below prior levels.
A typical Early-Q3 slowdown was expected, but the market had not yet shown longer selling times, faster price cuts, or fewer new listings.

In Mid-Q2 2026, Seattle closed 2.8K home sales, ↑~2% yearly, showing transactions continued even as the city's market stayed measured overall recently.
Pending sales totaled 2.8K in Seattle, ↓~7% yearly, while median days on market reached 21, taking 7 more days than a year earlier.
Active listings climbed to 11.1K, ↑~12% yearly, giving Seattle more homes on the market during Mid-Q2 2026 than the same period earlier.
Only ~16% of Seattle listings sold above original list price, ↓~6 percentage points yearly, while 46% remained unsold after 60 days, ↑~5 points.
These Seattle figures reflected seasonally adjusted monthly medians from Mid-Q2 2026, using sales, pending activity, active listings, and time-on-market to track momentum.