Seattle Housing Market Update: May 2026

If you only read headlines, you’d think Seattle home prices are falling. The data says otherwise, at least for houses. The Seattle housing market in May 2026 split sharply along two lines: single-family homes versus condos, and close-in neighborhoods versus the county at large.

Southeast Seattle: A Record May for Houses

Southeast Seattle (NWMLS area 380, covering Mt. Baker, Columbia City, Beacon Hill, Seward Park, Hillman City and Rainier Beach) just posted its highest May median price on record: $900,000, up 3% from last year. Moreover, it did so while the rest of the county cooled. Inventory here actually tightened: 135 active listings is 2% fewer than last May, and months of supply fell from 2.7 to 2.4 while pending sales rose 8%.

The pace tells the same story. 65% of houses sold at or above list price in May, and the 40% that sold above list went pending in a median of 8 days at 5% over asking. In fact, three quarters of all May sales went under contract in under 15 days at full list price. Homes that needed a price reduction, by contrast, took 81 days. The launch window is everything right now.

Condos in Southeast Seattle are a different and much smaller story. Active condo listings jumped 48% (from 21 to 31), and supply sits at 3.9 months, close to buyer’s-market territory. The median condo price did rise 13% to $655,000, but that’s based on just five closings, so treat it as noise rather than trend. The signal is the inventory: condo buyers here suddenly have choices.

What I’m seeing on the ground

Sellers: Pricing and presentation are more important than ever. The most well-presented and accurately priced homes are still receiving multiple offers and moving fast.

Buyers: Deals are out there. Competition is thinning, and there is real opportunity.

Case in point: A buyer client of mine closed last month on the most delightful Rainier Beach craftsman bungalow. We effectively got it for $18,000 under the asking price, in the form of Seller Concessions, which she used toward closing costs and to buy down her interest rate. The property was appraised $5,000 above the asking price, so she walked away from the closing table with immediate equity. Total value captured: $23,000 on a deal most buyers scrolled past.

Check out this article at Realtor.com that explains why Seattle home buyers are gaining power.

Seattle Citywide: Prices Back Above $1M, but Pick Your Market

Across all Seattle neighborhoods, the residential median closed at $1,037,500, up 3% year-over-year, and closed sales rose 7%. After the inventory surge of early spring, active listings have leveled off at just 2% above last year. As a result, the citywide narrative of falling prices simply isn’t supported by the closed data: well-prepared, well-priced houses are still commanding premiums, with 36% selling above list.

However, the bifurcation is stark. Houses that sold in under 15 days (68% of all sales) averaged 100.3% of list price. Houses that lingered past 90 days settled for 91.8%. Meanwhile, roughly 1 in 6 accepted offers citywide is failing to close, so deal management after mutual acceptance matters as much as the offer itself.

Seattle condos have crossed into a buyer’s market. Condo supply hit 5.1 months, up 29% from a year ago, while pending sales dropped 18%. The median condo price slipped 1% to $566,500. Add the rate decline (6.4% versus 6.8% last May) and the typical condo payment fell 5%, or about $186 a month. For first-time buyers priced out of houses, this is the most negotiable segment in the city, and it’s not close.

King County: The Cooling Is Real, but It’s Not Even

Zoom out to all of King County and the tone changes. The countywide residential median slipped 1% to $975,000, active listings rose 14%, and supply expanded to 2.3 months. Only 30% of houses sold above list, down from 39% a year ago, and 28% needed a price change before selling. In other words, the county is genuinely cooler than the city, and far cooler than Southeast Seattle.

Two pockets buck the trend. First, the very high end is surging: May sales above $3M rose 30% and $5M+ sales rose 60% year-over-year. Second, close-in urban neighborhoods (like the 380) are still tightening. The softness concentrates in the $1.5M–$2.5M suburban bands, where sales are down double digits. For buyers, the practical news is affordability: with rates at 6.4%, the typical county house payment fell $336 a month from last year despite similar prices.

County condos mirror the city, only more so: 4.6 months of supply (up 47%), pendings down 23%, and a median price down 5% to $540,000. Consequently, the typical condo payment is 9% lower than a year ago. That’s a meaningful affordability door reopening.

May 2026 at a Glance

*Based on only five closings; small-sample caution applies. Source: NWMLS via Windermere, May 2026 reports.

What This Means for You

• If you’re selling a house in Southeast Seattle: this is as strong a setup as you’ll find in 2026. Price to the market on day one, because the data shows the first two weeks decide whether you get 100%+ of list or a long sit and a price cut.
• If you’re buying a house: the city isn’t the bargain bin headlines suggest, but rates at 6.4% cut payments meaningfully, and any listing past 30 days is a real negotiation opportunity.
• If you’re condo shopping: you’re in the best buyer’s position in years, citywide and countywide. Negotiate accordingly: inspection contingencies, credits, and price are all on the table.
• If you’re a first-time buyer: softer condo prices plus lower rates plus Washington’s down payment programs make this spring unusually workable. My first-time buyer guide covers the programs in detail.

The Bottom Line

Houses in Seattle, and especially in Southeast Seattle, remain a competitive, modestly appreciating market. Condos across the region have tipped toward buyers. And the county as a whole sits in the most balanced position it has occupied in years. Wherever you sit in that picture, the right move depends on your block, not the headline.

Wondering what this market means for your home’s value? I’ll run a free, no-obligation valuation using live neighborhood data, not a Zestimate. Request it here. Or, if you’re buying, reach out and I’ll set up alerts for the neighborhoods and price bands where the data favors you.

Statistics derived from Northwest Multiple Listing Service data via Windermere Real Estate, May 2026. NWMLS data is believed accurate but not guaranteed. This article is general information, not financial advice.