January 2026 King & Snohomish County Market Update

January 2026 didn’t bring a surge.

It brought something better.

Clarity.

Rates eased meaningfully.
Inventory continued to rebuild.
And buyers returned—more cautious, more selective, but very much present.

This is no longer a market driven by urgency.
It’s a market driven by confidence and strategy.

The January Snapshot

Mortgage rates

• January 2026 average: ~6.10%
  
  
• January 2025 average: ~6.95%
  
  

That nearly 0.85% year-over-year drop matters.

On a typical purchase, it translates into hundreds of dollars per month and thousands in annual buying power.

Rates are not “low.”
But they are materially better than last year—and buyers are responding.

Home prices

• King County median price: ~$779,000
  
  
  • Down ~1.4% YoY
    
    
• Snohomish County median price: ~$675,000
  
  
  • Down ~8.2% YoY
    
    

This is not a crash.

It’s a recalibration—especially in Snohomish County, where affordability sensitivity is higher and 2021–2022 appreciation ran hotter.

Prices are softening where demand was stretched.
They are holding where homes are well-located and well-prepared.

Inventory and selection

Inventory continues to improve meaningfully:

• Months of supply
  
  
  • King County: ~2.0 months (up from ~1.5 last year)
    
    
  • Snohomish County: ~1.6 months (up from ~1.2 last year)
    
    
• Active listings
  
  
  • King County: up ~31% YoY
    
    
  • Snohomish County: up ~28% YoY
    
    

This is one of the most important changes in the market.

Buyers now have:

• Real choice
  
  
• Time to evaluate
  
  
• The ability to say “no”
  
  

And that shifts leverage.

What Pending Sales Reveal About Buyer Behavior

Closed sales show where the market was.

Pending data shows where the market is going.

And the January pending activity tells a nuanced—but encouraging—story.

Buyers are paying for the right homes

• Median unpublished pending price: $880,000
  
  
• Up 3.7% from the comparison period
  
  

Despite softer headlines, buyers are still committing at higher price points when homes are priced correctly and presented well.

Demand hasn’t disappeared.
It has become discerning.

Competition has cooled—but hasn’t vanished

Key shifts in offer dynamics:

• Pendings with multiple offers:
  
  
  • 27%, down from 38%
    
    
• Pendings with escalation clauses:
  
  
  • 10%, down from 18%
    
    

This confirms what many buyers are feeling:

• Fewer bidding wars
  
  
• Less blind escalation
  
  
• More rational decision-making
  
  

Homes still compete—but only when they earn it.

Buyer protections are returning

Perhaps the clearest sign of normalization:

• Finance contingencies: 74% of pendings (up from 66%)
  
  
• Inspection contingencies: 43% of pendings (up from 40%)
  
  

Buyers are no longer forced to waive fundamentals just to participate.

This brings sidelined buyers—especially first-time and move-up households—back into the market.

That’s a healthy signal.

How January 2026 Compares to Recent History

To put this into context:

January 2022

• Inventory measured in weeks
  
  
• Offers routinely waived inspections
  
  
• Escalations were standard
  
  
• List-to-sale ratios often above 105%
  
  

January 2026

• Inventory measured in months
  
  
• Inspections and financing are common again
  
  
• Negotiation is back
  
  
• List-to-sale ratios hover in the mid-90s
  
  

This is not a weak market.

It’s a functioning market.

What This Means If You’re Buying

You finally have leverage again.

Not unlimited leverage—but enough to matter.

Opportunities are showing up in:

• Homes priced off outdated 2024 expectations
  
  
• Cosmetic fixers with strong fundamentals
  
  
• Listings sitting longer due to presentation or pricing missteps
  
  

The buyers who will win in 2026 are not the fastest.

They’re the best prepared.

What This Means If You’re Selling

The market will still reward sellers.

But only if you’re precise.

Success now requires:

• Pricing to current comparable sales
  
  
• Treating condition as a strategy, not an afterthought
  
  
• Making the first 7–10 days on market count
  
  

Buyers are still paying premiums—but only for clarity and confidence.

What This Means for Investors

January quietly favors disciplined investors.

Why?

• More inventory means more mispricing
  
  
• Negotiation room is real again
  
  
• Financing is less hostile than a year ago
  
  

The deals that work now:

• Value-add properties with realistic ARVs
  
  
• Layout and usability improvements—not luxury upgrades
  
  
• Rentals that make sense without aggressive appreciation assumptions
  
  

Speculation is out.
Fundamentals are back in.

A Note of Realistic Optimism for 2026

Here’s the hopeful part—and it’s grounded in data:

• Rates are lower than last year
  
  
• Inventory is higher than last year
  
  
• Buyers are actively writing contracts
  
  

That combination rarely lasts forever.

Markets like this don’t reward waiting for perfect conditions.

They reward thoughtful action.

Want a clear plan for your next move?

If you’d like help translating these numbers into a strategy that fits your goals—whether buying, selling, or investing—we’re here.

• Call us
  
  
• Email us
  
  
• Schedule a strategy meeting
  
  

Or join us at our next Sips & Tips class:
https://www.connectingyouhome.com/sipsandtips

Smart markets reward informed decisions.