Buyers Take Note: Balance is Beautiful

As summer winds down and we head into fall, some major developments are taking shape in our local housing market, and buyers should take note. Inventory is the highest it has been in a decade, providing buyers more choices after a long haul of limited selection, resulting in a balanced market. This has caused prices to remain flat, and although interest rates remain stubborn, they are slightly less than they were a year ago.

This has resulted in lower monthly payments. As you can see from the charts below, the principal and interest payment for a Single-Family home in King County based on the July 2026 median home price is $151 less than a year ago, and for Snohomish County, $399 less. These charts are based on the median sales price and do not consider the size of the down payment, which would further lower the payment. Down payments have been averaging around 20%, but we see many buyers putting down 3-10% as well.

With 25% more single-family homes to choose from in King County and 33% more in Snohomish County year-over-year, buyers are enjoying the benefits of a balanced market rather than the tight seller’s market that has been present for a decade. The charts below, which outline inventory levels and months of inventory, show the dramatic shift that has occurred over this summer compared with prior years. Months of inventory illustrates the number of months it would take to sell out of homes based on the current pending sales rate, which results in either a seller’s market (0-2 months), balanced market (2-4 months), or a buyer’s market (4+ months). We are currently experiencing a balanced market.

What does this mean for affordability? Not only are monthly principal and interest payments lower, but buyers are enjoying more negotiating power. In our office, 25% of the pending sales from June 15th through August 10th recorded buyer credits with an average credit of $16,000. Many buyers are using these credits to offset their closing costs, requiring less cash at closing, or they are using them to strategically buy down their interest rates, lowering their monthly payments even more.

For example, if a buyer were to utilize a credit to reduce their interest rate by half a point, their monthly payment based on the median price in King County would be $324 lower and in Snohomish County $246 lower. Between the year-over-year reduction in rate, plus a half a point buydown, a buyer would save $475 a month in King County and $645 a month in Snohomish County year-over-year (see example below). That is an annual monthly payment savings of $5,700 in King County and $7,740 in Snohomish County, and total savings of $171,000 over the course of the 30-year loan in King County and $232,200 in Snohomish County. These figures are large, and they are real!

When a buyer takes the market at face value and sees more inventory, longer market times, and flat prices, they might think something is wrong and pause. When inventory was more constricted and the market more frothy, buyers were more apt to jump in and pay even though it was more expensive. It seems like silly psychology, but it is understandable that buyers feel more comfortable when others are also active. The buyers who understand the opportunities that are available to them right now, in a quieter time, are benefiting by saving money!

Another important aspect to understand is that real estate is a long-term hold investment. It is not only where you live and enjoy your life, but also an asset. As you can see in the images below, over the last 10 years, single-family homes have appreciated by 79% in King County and 87% in Snohomish County. This does take into account the massive price growth that happened in the pandemic, but it also shows year-over-year growth prior to the pandemic, ensuring that real estate is an amazing asset to have.

The key highlight to note in this balanced market is that the sky is not falling. Far from! 41% of homes that sold in July 2026 in King County sold at or above list price, and 39% in Snohomish County. Some homes are still seeing bidding wars and escalations. How a seller brings their home to market matters now more than ever with more inventory. Property condition, presentation, marketing, and pricing all play into the attention and results a home gets amongst the competition.

Success is being had on both sides of the market (buyers & sellers), and this is why it’s called a balanced market. This should be a welcomed phenomenon, not a scary one. If you have interest in learning more about today’s market or are curious about how your goals align, please reach out. It is always our goal to lead with the data to help educate our clients, so they are empowered to make strong decisions.