The real estate markets in Snohomish and King County, Washington have undergone a noticeable shift over the past 12–18 months. After years of historically low inventory and rapid price appreciation, the market is showing signs of rebalancing. But “rebalancing” doesn’t mean a crash—it means a more nuanced environment where inventory, demand, and affordability are all pushing against each other.
Let’s break down what’s actually happening.
Inventory: The Biggest Story of 2025–2026
The most important change in the current market is inventory growth.
In Snohomish County, active listings have surged dramatically year-over-year. Some reports show inventory rising by as much as 49–50% compared to early 2025. (W[REPORT]) This is a major shift from the ultra-constrained inventory levels of 2021–2023.
Even with that growth, however, inventory remains relatively low in absolute terms. As of spring 2026, Snohomish County is still sitting at roughly 2.0–2.4 months of supply, which is firmly in seller’s market territory. (themadronagroup.com)
For context:
- 0–3 months of inventory = seller’s market
- 4–6 months = balanced market
- 6+ months = buyer’s market (Windermere/North)
King County (including Seattle) has followed a similar pattern, though generally with slightly higher inventory levels, making it feel more “balanced” than Snohomish.
What changed from 2025?
Looking back at 2025:
- Inventory was already rising, up 30%+ year-over-year by late 2025 (Diemert Properties Group)
- Months of supply increased from around 1.0 to 1.4 months (Diemert Properties Group)
- Homes began sitting longer on the market (days on market rising 20–40%) (Diemert Properties Group)
In short, 2025 marked the beginning of inventory expansion, while 2026 is where that trend has accelerated.
The Impact on Prices
You might expect that a 40–50% increase in inventory would cause home prices to drop sharply. But that hasn’t really happened—at least not across the board.
Instead, prices have been flat to modestly up, with pockets of decline.
Snohomish County pricing trends:
- Median prices up ~8.6% year-over-year in some reports (Beyond Real Estate)
- Other data shows slight declines (0% to -3%) depending on month and dataset (W[REPORT])
- Zillow data suggests values are down about 1.4% annually (Zillow)
This mixed data tells an important story:
👉 Prices are no longer surging—they are stabilizing.
Why prices haven’t dropped more
Even with rising inventory, three factors are supporting prices:
- Still-low overall supply
Even after big percentage increases, inventory remains below balanced levels. - Persistent demand
Buyers are still active, just more selective. Homes are still selling near list price (often ~100%). (Beyond Real Estate) - The “lock-in effect”
Many homeowners are holding onto low mortgage rates from 2020–2022, limiting new listings.
Sales Activity: Slower, But Not Weak
While prices have held relatively steady, sales activity has softened.
Year-over-year trends from 2025 to 2026 show:
- Pending sales down ~8% in some reports (W[REPORT])
- Closed sales slightly down or flat (Diemert Properties Group)
- Days on market increasing significantly (20–40% longer) (Diemert Properties Group)
This reflects a shift in buyer psychology:
- Buyers are more cautious due to interest rates (~6–6.5%) (themadronagroup.com)
- They have more options and less urgency
- Negotiation has returned to the process
In other words, homes are still selling—but not instantly, and not always with multiple offers.
A 10-Year Perspective: Why This Shift Matters
To understand where we’re headed, it helps to zoom out.
Over the past decade (2016–2021 especially), the Seattle-area housing market experienced:
- Rapid population growth
- Extremely low inventory
- Historically low mortgage rates
- Double-digit annual price appreciation
The result was an overheated market, peaking around 2021–2022.
Since then:
- Mortgage rates doubled
- Inventory began slowly rebuilding
- Price growth flattened
What we’re seeing now in 2025–2026 is not a downturn—it’s a normalization cycle.
Forecast: What Happens in the Next 6–12 Months?
Based on current trends and historical patterns, here’s the most likely scenario for Snohomish and King County:
1. Inventory will continue to rise (moderately)
National and local forecasts suggest inventory could increase another 5–10% over the next year. (MarketWatch)
However, a flood of listings is unlikely due to the lock-in effect.
2. Prices will remain mostly flat
Expect:
- Small increases (0–3%) in some segments
- Slight declines in others (especially overpriced homes)
This aligns with national projections of ~1–2% price growth. (MarketWatch)
3. Market conditions will feel more balanced
As inventory inches toward 3–4 months:
- Buyers gain leverage
- Sellers must price strategically
- Homes take longer to sell
4. Pricing strategy becomes critical
We’re already seeing that homes priced correctly from day one:
- Sell faster
- Achieve higher final sale prices
While overpriced homes:
- Sit longer
- Require price reductions
- Often sell for less than they would have initially
What This Means for Buyers and Sellers
For sellers:
This is no longer the “name your price” market of 2021. Success now depends on:
- Accurate pricing
- Strong presentation
- Understanding buyer affordability
For buyers:
Opportunities are improving:
- More inventory to choose from
- Less competition
- Greater ability to negotiate
But affordability (rates + prices) remains the biggest challenge.
Final Takeaway
The Snohomish and King County housing markets are transitioning from extreme seller dominance toward a more balanced environment.
- Inventory is rising quickly—but still not high
- Prices are stabilizing—not crashing
- Sales are slower—but still steady
Over the next 6–12 months, expect a market that rewards strategy over timing. The era of rapid appreciation has cooled, but long-term fundamentals—strong job growth, limited land, and high demand—continue to support home values in the Puget Sound region.
In short:
We’re not heading into a downturn—we’re entering a more normal, more predictable housing market.