Seattle buyers hesitate as inventory rises, leaving market stuck between seller and buyer advantage

This summer brought more “for sale” signs across the Puget Sound yet many homes are lingering on the market as buyers hesitate to make big moves. A new report from the Northwest Multiple Listing Service shows King County now has more than three months of inventory for single family homes, the highest level in at least a decade. That is moving the market closer to a balanced range of four to six months but it also feels slow to sellers and uncertain to buyers.

More listings, fewer sales

July saw an increase in homeowners putting houses up for sale compared with last year, but pending sales declined across much of the region. In King County, pending sales fell about 11% year over year, and areas like Seattle and the Eastside saw declines of roughly 16 to 17%.

Prices mostly steady but still high

Median sale prices have not plunged. King County’s median persisted near $995,000, while Snohomish dipped to about $757,000, down 6%, Pierce rose to $590,000, up 2% and Kitsap eased to $595,000, down 1%.

Mortgage rates and job uncertainty

Mortgage rates held around 6.5% in July, keeping borrowing costly. Local tech employers continue cautious hiring and layoffs, which has made many prospective buyers, especially tech workers, reluctant to commit.

A market of contrasts – Brokers describe a split market

Some homes are sitting unsold for weeks while others spark bidding wars. Condos are particularly slow, with King County needing nearly six months to clear current condo inventory. Nationally, Seattle stands out. July saw one of the steepest metro declines in home prices and pending sales among major US markets, even as it remains one of the country’s priciest housing regions.

What this means for customers

Buyers – You may find more negotiating power than in recent years, but affordability is still a major hurdle. If you are financially ready, now could be a time to explore opportunities without rushing into a stretched budget.

Sellers – Expect a more deliberate pace. Pricing carefully and presenting your home well remain vital to attract the smaller pool of ready buyers.

Agents and advisors – Prepare clients for uneven activity as some listings will move fast and others may require patience and strategic adjustments.

Bottom line

Seattle’s housing market is in limbo. Inventory is up and competition for ready buyers is easing but high prices, stubborn mortgage rates, and economic uncertainty mean many shoppers remain wary. For those who are prepared, opportunities exist, yet most will proceed cautiously.