Key Takeaways

Key Takeaways Market Normalization: Washington's median home price is down 3.2% statewide, but varies significantly by region - Seattle down more, Spokane actually up slightly Buyer Advantage: With 2.8 months of inventory and 28 average days on market, buyers have more negotiating power than they've had in years Regional Differences: Seattle metro cooling while eastern Washington stays steady; Tacoma emerging as value play with 8% increase in sales volume Reality Check: The days of overpricing and instant bidding wars are mostly over - realistic pricing and proper presentation matter more than ever

Washington State Real Estate Market Report February 2026: What Uncle Charles Sees in the Numbers

Look, I've been watching Washington's housing market for years, and February 2026 is telling us a story that's both familiar and surprising. While everyone's focused on the shiny listings and perfect open houses, I'm looking at the whole picture - including the properties that don't make it to the MLS.

I had a homeowner call me last week from Tacoma who said, "Charles, my neighbor's house sold in three days, but mine's been sitting for two months. What gives?" That's Washington's market in a nutshell right now - it's not one market, it's dozens of micro-markets all doing their own thing.

The Big Picture: Washington's Housing Numbers

Here's what the data is showing us as of February 2026. The statewide median home price is sitting at $687,500, which is actually down about 3.2% from this time last year. Now, before you get too excited or too worried, let me put this in perspective.

Sales volume is interesting - we're seeing about 4,200 homes sold statewide in January, which is pretty typical for a winter month but down roughly 12% from January 2025. Inventory has crept up to about 2.8 months of supply, which means we're still in what most folks call a seller's market, but it's not the feeding frenzy we saw a few years back.

Days on market averages 28 days statewide, but here's where it gets interesting - that number is meaningless without context. A move-in ready home in Bellevue might sell in five days, while a fixer-upper in Spokane might sit for 90 days.

Seattle Metro: The Tale of Two Markets

Seattle proper is fascinating right now. The median price hit $892,000 in January, down from $925,000 last year. I'm seeing something I haven't seen in a while - actual price negotiations. Buyers are getting inspection contingencies again, and sellers are having to think twice about overpricing.

But here's what the traditional market reports won't tell you: I'm getting more calls from Seattle homeowners who bought at the peak and now owe more than their house is worth. These underwater situations don't show up in your typical market stats, but they're real, and at HOMESELL USA, we're helping folks navigate these tough spots.

The eastside - Bellevue, Redmond, Kirkland - is holding steadier. Tech money is still flowing, and those $1.2 million median prices aren't budging much. Days on market there averages just 18 days for quality properties.

Tacoma and South Sound: The Sweet Spot

Tacoma continues to be Washington's best value story. Median prices around $575,000, and you're still getting reasonable commute access to Seattle. Sales volume is actually up 8% year-over-year in Pierce County, which tells me people are figuring out they can get more house for their money down there.

What I'm also seeing in Tacoma is more investors looking for rental properties and fix-and-flip opportunities. The distressed property market is active - I just closed on a fire-damaged property there last month that a family couldn't afford to repair.

Spokane: The Surprise Story

Here's something that might surprise you - Spokane's median home price is up 2.1% year-over-year to about $425,000. While the west side is cooling off, eastern Washington is still seeing steady demand. Days on market averages 35 days, and inventory is tight at just 2.2 months of supply.

I'm getting calls from folks relocating from Seattle who are shocked at what $400,000 buys them in Spokane versus King County. It's driving steady migration eastward.

The Rural Reality

Small towns and rural areas tell a different story entirely. Places like Walla Walla, Mount Vernon, and Bellingham are seeing interesting dynamics. Properties under $350,000 - if you can find them - still move fast. But anything that needs work sits longer because fewer buyers have cash for both purchase and repairs.

That's where HOMESELL USA comes in. I bought three rural properties last quarter from families who inherited houses they couldn't maintain or afford to fix up. These situations don't show up in market reports, but they're a real part of Washington's housing picture.

What's Driving These Changes

Look, here's the deal - several factors are reshaping Washington's market right now. Mortgage rates are hovering around 6.8%, which has definitely cooled buyer enthusiasm compared to the 3% days. But it's not just rates.

Employment in the Seattle area remains strong, but some tech companies have pulled back on hiring. Boeing's situation continues to create uncertainty. Meanwhile, the cost of living has pushed more people to consider markets outside King County.

New construction is picking up slightly - about 1,800 permits pulled statewide in January, up from 1,650 last January. But it's still not enough to dramatically shift supply and demand.

What This Means for Different Situations

If you're buying: You have more negotiating power than you've had in years, especially on properties that aren't perfect. Don't be afraid to ask for repairs or closing cost credits. But move decisively on the good stuff - quality properties in desirable areas still get multiple offers.

If you're selling a nice property: Price it right from day one. The days of throwing any price on a house and getting a bidding war are mostly over. But realistically priced, well-presented homes still sell reasonably fast.

If you're dealing with a problem property: This is where I see the biggest gap between the traditional market and reality. Whether you sell to us or someone else, here's what you need to know - the market for distressed properties is actually quite active. Investors have cash, and they're looking for opportunities.

Looking Ahead

I've seen this a hundred times - markets don't move in straight lines. Washington's shift toward a more balanced market is probably healthy long-term, even if it feels scary if you're trying to sell right now.

Spring typically brings more activity, and I expect we'll see that again this year. But I don't think we're going back to the crazy appreciation rates of 2021-2022 anytime soon.

The bottom line? Washington's real estate market is becoming more normal, and normal means you actually have to think about pricing, presentation, and timing. Whether you're buying, selling, or dealing with a property problem, the key is understanding what's really happening in your specific area and situation.

If any of this sounds like your situation, give Uncle Charles a call. No pressure, no judgment - just straight answers about what your options really are in today's market.

Frequently Asked Questions

Frequently Asked Questions

Q: Are home prices falling in Washington State?

A: Statewide, prices are down about 3.2% from last year, but it varies dramatically by location. Seattle's down more significantly while Spokane is actually up slightly. It's not a crash - it's a market correction toward more sustainable levels.

Q: Is now a good time to buy a house in Washington?

A: You have more negotiating power than you've had in years, especially on properties that need work or aren't perfect. Quality properties still move fast, but buyers can actually get inspection contingencies and negotiate repairs again.

Q: How long are houses taking to sell in Washington?

A: Statewide average is 28 days, but that's misleading. A nice house in Bellevue might sell in five days, while a fixer-upper in a smaller town could sit for three months. Location and condition matter more than ever.

Q: What's happening with distressed properties in Washington?

A: The distressed property market is actually quite active. Investors have cash and are looking for opportunities. If you're dealing with foreclosure, tax problems, or a house that needs major repairs, there are solutions available.

Q: Should I wait to sell my Washington house?

A: That depends on your situation. If you have a nice property and need to sell, price it right and it'll likely sell reasonably fast. If you're hoping for 2021 prices to return soon, that's probably not realistic. Every situation is different.