As of January 12, 2026, the Seattle-area housing market across King, Pierce, and Snohomish counties is showing signs of a “functional” shift as inventory continues to rise and mortgage rates hover at their lowest levels in over a year.
Today’s Interest Rates: The New 6% Normal
Mortgage rates started 2026 on a downward trend following multiple Federal Reserve rate cuts in late 2025. For qualified borrowers, 30-year fixed rates are now consistently finding a floor near or just below 6%.
- 30-Year Fixed: Averaging approximately 5.87% to 6.22%.
- 15-Year Fixed: Averaging approximately 5.25% to 5.63%.
- FHA/VA Loans: Often lower, with 30-year averages near 5.63% to 5.65%.
While some experts predict rates could dip to 5.5% later this year, most agree that a range of 5.8% to 6.4% will be the standard for 2026.
Tri-County Market Update: King, Pierce, & Snohomish
The local market is characterized by a “softening” of prices and a significant jump in active listings, which rose roughly 23% year-over-year in the central Puget Sound region.
King County: Resilient but Cooling
- Median Price: The median sales price for single-family homes is approximately $899,950, up about 2.9% year-over-year.
- Inventory: Inventory is tight but growing, with roughly 2.0 months of supply.
- Trend: High-income demand remains strong, particularly on the Eastside, but the market is moving toward a plateau as affordability limits are reached.
Snohomish County: More Options for Buyers
- Median Price: Single-family homes saw a median price of $760,000, a decrease of 3.8% from a year ago.
- Inventory: This remains the tightest market in the region with only 1.61 months of supply.
- Trend: Prices are underperforming the metro average due to affordability constraints, making it a prime area for buyers looking for slightly more leverage.
Pierce County: Steady Demand
- Inventory: Currently holds roughly 2.09 months of supply.
- Trend: Pierce continues to see year-over-year increases in both active listings and closed sales, reflecting its role as a more accessible alternative to the King County core.
Key Takeaway for 2026
The “intensity dial” has been turned down. Sellers must now prioritize realistic pricing and presentation, while buyers benefit from more choices and the most favorable borrowing costs seen since 2024. If you are looking to move to Seattle or Greater Puget Sound area, Contact me I’m here to help answer any questions or facilitate a sale.
Copyright© 2026
Debra Teal | Real Estate Broker at REMAX Exclusive
Helping People Buy and Sell Homes Since 2005
Debra Teal | Seattle Real Estate Link 