Seattle Housing Slows as US Median Home Price Declines
Last month, home sellers in the Seattle area expected lower mortgage rates and a strong fall season to attract hesitant buyers. That plan didn’t succeed, leaving many listings unsold across the Seattle housing market crash trend.
A Surge in Listings Across King County
In September, sellers in King County added a large number of homes to the market, according to the Northwest Multiple Listing Service data released Monday. The county saw 10% more new single-family listings than the same month last year. A total of 2,788 new homes were listed — the highest for September since 2021, reflecting shifting house values Seattle.
Real Estate Agents Anticipated Heavy Activity
“We expected a super busy September,” said Rob McGarty, founder of Bushwick Real Estate, a Seattle-based brokerage.
Fall Season Buying Patterns Shift
In the Pacific Northwest, homebuying activity usually rises in fall when people return from summer vacations and resume house hunting. Yet, last month, major economic changes disrupted that rhythm. Mortgage rates climbed again midway through September, followed by worries about a possible government shutdown, weakening the median home price Seattle.
- Economic Uncertainty and Buyer Anxiety : Layoffs and fears of an unstable economy have left potential buyers anxious, said local real estate agents.
- Low Demand and High Supply Create Pressure : Demand wasn’t strong enough to absorb the rise in listings, agents said, putting sellers under pressure.
Those who decided to buy had a clear advantage in negotiations. “Buyers now hold the upper hand, more than I’ve seen in years,” said Windermere real estate agent Heather Maddox.
Negotiation Power Expands for Active Buyers
“I feel like all my buyers lately have been able to negotiate major discounts on price, closing costs, and rate buydowns,” Maddox said. The shift in bargaining power continues to shape the Seattle average house price outlook. Demand levels fluctuated week by week in September as broader financial factors, including a temporary drop in mortgage rates to an annual low, impacted activity before the Federal Reserve’s rate cut.
Temporary Boost from Falling Mortgage Rates
A half-point drop in mortgage rates brought a short wave of buyer activity before rates increased again — disappointing many who thought the Fed’s rate cut would directly lower mortgage costs and stabilize the median home price US.
Federal Actions and Mortgage Rate Connection: Mortgage rates don’t always align with federal interest rate changes, though they are often influenced by them.
The Role of Treasury Yields
The federal funds rate is the rate banks use for overnight borrowing. It affects economic expectations and inflation, which influence the 10-year Treasury yield — a key bond rate that guides mortgage costs and impacts the median home price in Bellevue.
- Why Mortgage Rates Initially Fell: September’s decline in mortgage rates occurred because the 10-year Treasury yield dropped before the Fed’s official rate cut, temporarily boosting buyer optimism.
- Buyers Waiting for Perfect Timing: “We have so many buyers sitting right there on the fence,” Maddox said. “They’re trying to time it perfectly.”
Increased Listings Keep Prices Steady
The surge in new listings gave buyers room to negotiate, preventing sharp price hikes. In many Seattle metro neighborhoods, home prices in September stayed close to last year’s levels, which slightly affected the median home price US.
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King County’s Median Sale Prices
King County’s median single-family home price stood at $957,000 — less than 1% higher than last year, based on NWMLS data. The median dropped 3.2% to $750,000 in Snohomish County, rose 1.3% to $573,940 in Pierce County, and climbed 7.5% to $589,975 in Kitsap County.
- Seattle’s Median Home Price Growth: In Seattle itself, the median home price reached $975,000, marking a nearly 4% rise year over year, reflecting resilient house values Puyallup trends nearby.
- Seasonal Listing Patterns Emerging: Typically, listings slow in October as colder months reduce activity. If there’s a buying sweet spot, it’s now, Maddox noted.
Negotiation Margins Widen
“I was joking with another agent that every house has about $50,000 worth of negotiation space,” Maddox said. “Every offer I receive comes in roughly $50,000 lower, and every offer I send is just as aggressive.”
- Condo Market Faces Oversupply: The condo segment also shows imbalance, with a surge in new listings. It would take about 19 weeks to sell King County’s existing condo supply.
- Home and Condo Sales Trends: “Nobody wants condos right now. It’s unbelievable how many are for sale,” said McGarty, describing the slowdown in the Seattle housing market crash segment.
- Condo Prices Continue to Drop: King County’s median condo sale price is $527,500 — down 6% from last September. Snohomish County’s median condo price also fell 9% to $482,500.
- Rising Fees Discourage Condo Buyers: Despite the drop in sale prices, condo ownership remains expensive due to increasing HOA and insurance fees. These costs have reduced buyer demand, forcing sellers to compete harder for attention.
- Seller-to-Buyer Ratio Widens: Redfin reported nearly 77% more condo sellers than buyers in the Seattle metro area in August, showing clear buyer hesitation and adding pressure on the real estate photography in US market visibility.
- Affordability Challenges Persist: “Some buyers simply can’t afford the total cost,” McGarty said, pointing to the growing affordability gap in the Seattle housing market.
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