Prices rebound while buyer competition begins to return across the Puget Sound region

The Puget Sound housing market began 2026 with renewed momentum. February data shows prices rising sharply month-to-month across both King and Snohomish counties, while new Northwest MLS pending contract data suggests buyer competition is beginning to increase again heading toward the spring market.

Lower mortgage rates, limited housing supply, and growing buyer activity are combining to shape what could become a more competitive spring housing market.

King County Home Prices

The median home price in King County reached $840,000 in February 2026.

That represents:

• $775,414 in January 2026
  
  
• $828,975 in February 2025
  
  

This equals:

• +8.33% month-over-month growth
  
  
• +1.33% year-over-year growth
  
  

Longer-term appreciation remains substantial:

King County’s most recent market peak occurred in June 2025 at $920,000, meaning prices are currently:

−8.70% below that peak

Despite last year’s cooling, prices remain dramatically higher than they were even five years ago.

Snohomish County Home Prices

Snohomish County followed a similar pattern.

The median home price reached $724,995 in February 2026.

Recent comparisons:

• $670,000 in January 2026
  
  
• $735,000 in February 2025
  
  

That equals:

• +8.21% month-over-month growth
  
  
• −1.36% year-over-year change
  
  

Long-term growth remains strong:

Snohomish County’s recent peak occurred in May 2025 at $799,950, meaning current prices remain:

−9.37% below peak levels

Price Recovery Is Beginning

Both counties saw prices pull back during the second half of 2025 before beginning to recover early in 2026.

Historically, the Seattle housing market often begins strengthening between February and April as the spring market begins.

Mortgage Rates Improve

Mortgage rates have also moved in a favorable direction for buyers.

The average 30-year mortgage rate recently dropped to 5.98%, down from 6.63% at this time last year.

Lower borrowing costs improve affordability and often bring more buyers back into the market, which can increase demand as we move deeper into the spring season.

Buyer Competition Is Beginning to Increase

The Northwest MLS Pending Listing Report generated March 9, 2026 provides an early look at current buyer behavior.

Across the MLS system:

• 7,120 homes were currently pending
  
  
• 4,766 homes went pending during the January reporting period
  
  

Several indicators suggest buyer competition is starting to increase.

Multiple Offers

• 24% of pending homes received multiple offers
  
  
• Down slightly from 25% in the previous reporting range
  
  

Even with a slight decline, roughly one in four homes is still attracting competing buyers.

Escalation Clauses

• 6% of pending sales included escalation clauses
  
  
• Down from 7% previously
  
  

Escalation clauses typically appear when buyers anticipate competing offers and want their offer price to automatically increase if needed.

Financing Contingencies

• 79% of pending contracts include financing addendums
  
  
• Up slightly from 78% previously
  
  

This suggests most buyers are still purchasing with traditional financing rather than all-cash offers.

Inspection Contingencies

• 62% of pending contracts include inspection addendums
  
  
• Down from 66% previously
  
  

A declining inspection contingency rate can signal increasing competition, as buyers sometimes reduce contingencies in stronger markets.

What This Means for Buyers

For buyers, the current market presents a mix of opportunity and caution.

Positive conditions include:

• mortgage rates lower than a year ago
  
  
• prices still below 2025 peak levels
  
  
• more listings typically entering the market during spring
  
  

However, early pending data suggests competition may begin increasing again, particularly for well-priced homes.

Buyers who are prepared with financing and ready to act when the right home appears will likely have the greatest success.

What This Means for Sellers

For sellers, several indicators point toward strengthening conditions:

• February prices jumped over 8% month-to-month in both counties
  
  
• roughly 24% of homes are receiving multiple offers
  
  
• inspection contingency use is declining
  
  

Homes that are well prepared, priced correctly, and marketed effectively continue to attract strong interest from buyers.

Looking Ahead to the Spring Market

The Puget Sound housing market typically accelerates between March and June.

Key indicators to watch include:

• inventory levels
  
  
• new listings entering the market
  
  
• pending sales activity
  
  
• mortgage rate movement
  
  

If mortgage rates remain near current levels and buyer demand continues increasing, the 2026 spring market could see stronger competition and continued price stability.

Thinking About Buying or Selling?

Understanding current market conditions is the first step toward making a smart real estate decision.

If you’re considering buying or selling this year, we’d be happy to help you evaluate your options and develop a strategy tailored to today’s market.

You can also join us at our upcoming Sips & Tips Real Estate Class where we discuss local market trends and strategies for buyers and sellers.

Learn more at:

https://www.connectingyouhome.com/sipsandtips