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You may be reading the headlines and heard that the real estate market across our country and locally is shifting. In King and Snohomish counties, for both single-family residential (SFR) homes and condos, I can confidently say that inventory has increased across the board, and it is taking longer to sell a property due to increased selection and higher interest rates.
What varies from one zip code and/or city to the next are prices and equity. In some areas prices are up year-over-year, and in others, they are either flat or down. Some areas are affected more than others with downward pressure on prices, so having a skilled professional help you assess your value really matters. We are seeing many misplaced homes in the market, mostly due to pricing too high and/or inferior property condition. What I can also say for sure is that accuracy and quality matter in a sea of quantity and that long-term equity growth is strong.
When a home is brought to market accurately priced and properly prepared for market along with a strong equity position, sellers are winning! Keeping perspective on pricing by marrying the long-term gains with the current environment at the forefront has been the guiding light to a smooth sale and positive financial return. Couple that with some patience in a more normalized market, and stress levels reduce as home sellers and skilled real estate professionals partner to reach the seller’s goals.
Consumers should be mindful of who they hire! Unfortunately, the barrier of entry into the real estate profession is low, so be selective and seek someone truthful, who does their research, has a detailed plan, and knows how to negotiate. Professionals who are excellent communicators and are data and process-driven are the ones who are rising above the crowd by leaning into the current market conditions to find success for their clients. Below are the stats for my office through June 30th 2026, compared to the rest of the market, and I’m happy to report we are creating exceptional results for our sellers with well-above-average days on market and list-to-sale price ratios.
With monthly payments rising due to higher loan costs year-over-year, buyers have become more discerning as they build their budgets and decide what they are willing to take on. The irony of this phenomenon is that buyers have been waiting for this increased level of selection, a slowdown in price growth, and more negotiating power for years! Yes, this opportunity is coupled with higher interest rates and stubborn inflation, but with more room to negotiate, we are seeing many buyers obtain seller credits to buy-down their rate or negotiate a price they feel good about.
Additionally, it is important to understand that real estate is a long-term hold investment. While we saw an intense ramp-up in prices during the pandemic and tech boom in our area, that is not the norm. This caused an illusion that one could turn a property in 1-3 years and make a profit. During the pandemic, we saw double-digit annual price appreciation in many areas. The softening we are seeing in prices is correcting the long-term annual appreciation average against the historically high ramp-up we saw from 2020-2023.
According to the National Association of Realtors (NAR), the average amount of time a person stays in a home before they sell is 11 years, and the average annual appreciation is 4.3%. This combination could result in a 59% increase in the investment through equity built, based on the averages. When buyers plan to purchase a home they can see themselves in for at least 6 years, they are caring for their investment and enjoying where they live at the same time. Of course, life can change, requiring one to move sooner, and having a skilled professional in your corner to help navigate this is key.
On the flip side, many home sellers are sitting on wide, positive spreads of equity, especially if they have owned their homes for more than 6 years; and those who have been in their homes for a decade plus have gained amazing household wealth by owning real estate. We are seeing many of those sellers come to market due to life changes such as a shift in family size, job change, retirement, or a planned move out of state. Many Baby Boomers are following their adult children and grandchildren or simply right-sizing to a house or location that better fits their lifestyle.
Trends we are seeing for buyers are shifting as well. On top of the fact that many home sellers are also home buyers (everyone needs a place to live), we have a large population of younger buyers trying to obtain their first homes. In 2025, first-time homebuyers only accounted for 21% of all buyers, and in June 2026, they accounted for 33% of all home buyers. More selection and less competition have allowed some first-time buyers to jump in and seize the opportunity of a more open market to start building wealth through real estate and ditch the rent payment.
This market is nuanced, and while we can make some sweeping statements about inventory, interest rates, and the time it takes to transact, every situation is unique and requires analysis. The recipe of one’s motivation for a move, equity position for a seller, affordability for a buyer, and how that marries to the market conditions can lead to great success for some immediately. It also may require building a plan for some to get prepared to make their move later. What I do know is this: if you’re curious about how your goals align with today’s market, you have to ask! And you should ask someone willing to get into the weeds of the data, discuss your goals, listen to your needs, and help you devise a plan that works whether it is now or down the road. I am here for that, always! Please reach out if you want to learn more about how this nuanced market applies to your unique set of circumstances.
October Home Maintenance 🏡✨ Prepare for the colder months by making sure your house is sealed from water damage and pests. Labor and building materials are also typically the least expensive around this month, so utilize this to your advantage if you’ve been needing to make household updates or renovations to increase the marketability of your home.
