May 2026 Puget Sound Housing Market Update

Inventory Is Rising. Buyers Have More Choices. Prices Are Still Holding.

King and Snohomish County Real Estate Market Report – May 2026

For the first time in several years, the Seattle-area housing market is beginning to resemble something closer to a balanced market.

Inventory continues to climb. Buyers have more negotiating power. Homes are taking longer to sell than they did during the frenzy of 2021-2022. Yet despite these changes, home prices remain remarkably resilient.

The May 2026 numbers reveal a market that is no longer driven by scarcity alone. Instead, buyers are becoming more selective, sellers must be more strategic, and opportunities are emerging for those who understand how the market is evolving.

Quick Takeaways

King County

• Median Price: $875,000
• Active Listings: 8,071
• Pending Sales: 2,529
• Months of Inventory: 4.1
• Average Mortgage Rate: 6.44%

Snohomish County

• Median Price: $739,995
• Active Listings: 2,774
• Pending Sales: 1,085
• Months of Inventory: 3.5

The Biggest Story: Inventory Is Growing Fast

For years, buyers faced a market defined by a lack of options.

That is changing.

Compared to one year ago:

King County

• Inventory increased 18.3%

Snohomish County

• Inventory increased 36.1%

This is one of the largest inventory increases we've seen since before the pandemic.

More listings mean:

• Buyers can compare homes more carefully.
• Fewer buyers are waiving protections.
• Sellers face more competition.
• Pricing mistakes are punished more quickly.

The increase is particularly noticeable in areas like Edmonds, Lynnwood, Shoreline, Bothell, Mill Creek, Mukilteo and parts of North Seattle where inventory growth has outpaced buyer demand.

Prices Continue To Surprise

Many people expected higher mortgage rates to push prices lower.

Instead, prices have largely remained resilient.

King County

Median price reached $875,000, up:

• 2.9% from April
• 2.3% from last year

This represents the highest median price recorded so far in 2026.

Snohomish County

Median price reached $739,995.

While prices are slightly below last year's levels, they remain near historic highs despite mortgage rates remaining above 6%.

This tells us an important story:

Demand has slowed, but it has not disappeared.

The Puget Sound region continues to benefit from:

• Strong technology employment
• Limited long-term housing supply
• High-income households
• Continued migration into the region

Buyers Are Regaining Leverage

A year ago many buyers felt they had only two options:

1. Waive protections.
2. Lose the home.

Today conditions are noticeably different.

With inventory expanding:

• Buyers can negotiate repairs more frequently.
• Financing contingencies are becoming more common.
• Multiple-offer situations still occur, but primarily on the most desirable homes.

The market is increasingly rewarding buyers who are prepared and patient.

Homes Are Taking Longer To Sell

Days on Market

King County: 27 days

Snohomish County: 28 days

While still relatively quick compared to historical norms, this represents a substantial shift from the ultra-fast market many sellers became accustomed to during the pandemic era.

Today's buyers are:

• Comparing options carefully.
• Negotiating more often.
• Walking away from overpriced listings.

Mortgage Rates Remain the Wild Card

Mortgage rates averaged approximately 6.44% during May, up slightly from April.

While rates remain significantly above pandemic-era lows, they are well below the peaks reached in 2023 and 2024.

A useful perspective:

Many economists now expect rates to remain in the 6% range through much of 2026 rather than returning to the unusually low levels experienced during the pandemic.

The result?

Buyers are adapting rather than waiting.

What This Means For Sellers

Many homeowners still believe the market works like it did in 2021.

It doesn't.

Today's successful sellers:

• Price accurately from day one.
• Prepare the home before listing.
• Invest in professional photography and marketing.
• Understand buyer psychology.
• Review competing listings before setting strategy.

The good news:

Well-prepared homes continue to sell quickly and command premium pricing.

The challenge:

Average homes no longer automatically receive premium offers.

What This Means For Buyers

This may be the best buying environment we've seen in several years.

Why?

• More inventory.
• Less competition.
• Greater negotiating power.
• More opportunities for inspections and financing protections.

Many buyers who stepped aside in 2023 and 2024 are beginning to re-enter the market as they realize waiting for dramatically lower rates may not be realistic.

What This Means For Investors

Investors should pay close attention to three trends:

1. More Inventory

The growing supply creates opportunities to identify motivated sellers and negotiate favorable terms.

2. Stable Rents

The region's employment base continues supporting rental demand.

3. Future Rate Cuts

Even modest rate declines could improve investor cash flow and boost property values.

For long-term investors, today's market may offer more attractive opportunities than the highly competitive environment of recent years.

Looking Ahead To Summer 2026

Historically, June through August represent the busiest months of the year.

We expect:

• Additional inventory growth.
• Continued buyer activity.
• Stable to modestly increasing prices.
• Competitive conditions for exceptional homes.
• Greater negotiation opportunities on average listings.

The market is becoming more balanced—not weaker.

That distinction matters.

Balanced markets often create opportunities for buyers, sellers, and investors simultaneously.

Thinking About Buying or Selling?

Every neighborhood is behaving differently.

A home in Edmonds may receive multiple offers while a similar property in another area sits on the market for several weeks.

That's why local expertise matters more than ever.

If you're considering:

• Buying your first home
• Moving up
• Downsizing
• Investing
• Building an ADU
• Selling in the next 6-12 months

Let's talk about your options and build a strategy tailored to today's market.

Schedule a consultation with Reece Homes today.