Published July 3, 2026 by Abhi Singh
Seattle Metro Housing Market Update: July 2026
Mortgage rates just dropped to a seven-week low. Inventory is still elevated. And the gap between where prices are rising and where they are falling keeps getting wider. This month I am adding Eastside city-by-city data for the first time, so you can see how Bellevue, Redmond, Kirkland, Sammamish, Issaquah, and Woodinville compare to the South Sound and North Corridor cities I have been tracking.
What Changed Since June
Mortgage rates dropped from 6.48% to 6.43%, a seven-week low. Purchase applications ticked up in response.
Seattle median slipped from $861K to $855K as summer inventory gives buyers more choices.
Pierce County keeps climbing. Median up to $562K from $556K. South Sound remains the value play.
Eastside correction deepens. Bellevue median now $1.48M, down 8% year over year. Redmond down 5%.
Lynnwood hits $740K, up 6.5% year over year. Light rail effect continues to be the strongest growth driver in the metro.
Metro Overview
| Area | Median Price | vs. June | YoY Change |
|---|---|---|---|
| Seattle | $855K | -$6K | -2.5% |
| King County | $855K | +$5K | -0.5% |
| Eastside | $1.42M | -$30K | -7.5% |
| Snohomish County | $715K | -$5K | -2.0% |
| Pierce County | $562K | +$6K | +3.5% |
Sources: Redfin, Zillow, NWMLS. Median sale prices based on most recent 30-day or rolling 3-month data available as of July 2026.
South Sound: City-by-City Pricing
Pierce County and south King County. Full South Sound guide
| City | Median Price | vs. June | YoY Change |
|---|---|---|---|
| Bonney Lake | $695K | +$15K | +8.5% |
| Renton | $710K | +$10K | +1.0% |
| Kent | $645K | +$10K | +1.8% |
| Auburn | $605K | +$11K | +2.5% |
| Puyallup | $568K | +$13K | +4.2% |
| Federal Way | $558K | +$13K | +4.0% |
| Graham | $542K | +$7K | +2.5% |
| Orting | $510K | +$5K | +2.0% |
North Corridor: City-by-City Pricing
Snohomish County and north King County. Full North Corridor guide
| City | Median Price | vs. June | YoY Change |
|---|---|---|---|
| Bothell | $975K | -$10K | -3.5% |
| Edmonds | $905K | +$10K | -1.0% |
| Kenmore | $848K | -$7K | -1.5% |
| Shoreline | $800K | +$6K | +1.0% |
| Lynnwood | $740K | +$20K | +6.5% |
| Mountlake Terrace | $648K | +$13K | +4.2% |
Eastside: City-by-City Pricing
East King County. New this month.
| City | Median Price | YoY Change |
|---|---|---|
| Sammamish | $1.55M | -4.0% |
| Bellevue | $1.48M | -8.0% |
| Redmond | $1.38M | -5.0% |
| Kirkland | $1.35M | +2.5% |
| Woodinville | $985K | -8.5% |
| Issaquah | $950K | -2.0% |
Note: Eastside data is new to this report. "vs. June" column will be included starting with the August update.
Mortgage Rates
30-Year Fixed
6.43%
Down from 6.48% in June
15-Year Fixed
5.79%
Down from 5.84% last week
Year Ago
6.67%
Rates down 24 bps YoY
Rates hit a seven-week low heading into July, and purchase applications have ticked up in response. On a $550,000 home with 10% down, today's rate translates to roughly $3,120/month in principal and interest, compared to $3,190/month at June's rate. Not a game-changer, but the trend is moving in the right direction. Source: Freddie Mac PMMS, July 2, 2026.
What Is Your Home Worth Right Now?
With prices shifting at the city and neighborhood level, the only way to know your home's value is to look at actual comps in your area. I will pull recent sales within a half mile of your address and give you a realistic range, not a Zestimate.
The Summer Correction Window
Three months into the summer selling season, a pattern has become clear: this is a market where location matters more than it has in years.
On the Eastside, the correction that started in late 2025 is still running. Bellevue is down 8% year over year. Redmond is down 5%. Woodinville is down 8.5%. These are significant drops for communities that spent the last five years as some of the most expensive in the state. The driver is a combination of tech layoffs working their way through the market, high interest rates making $1.5M mortgages painful, and a surge in new construction giving buyers alternatives.
Meanwhile, the South Sound is doing the opposite. Every single city I track in Pierce County and south King County is up year over year. Bonney Lake leads at +8.5%. Puyallup is at +4.2%. Even Orting, one of the most affordable communities in the metro, is up 2%. Buyers who got priced out of Seattle and the Eastside are finding real value in these communities, and the numbers show it.
The North Corridor is split. Lynnwood continues to outperform everything around it, up 6.5% year over year thanks to the light rail effect. Mountlake Terrace and Shoreline are positive. But Bothell, Kenmore, and Edmonds, the higher-priced North Corridor cities, are all slightly negative year over year.
If you are a buyer, the takeaway is this: mid-July through August is historically the best window for deals. Spring buyers have already closed. Sellers who listed in April and May and have not sold are getting anxious. Price reductions are piling up. And with rates trending down slightly, your purchasing power is a little better than it was a month ago.
Spotlight: The Eastside Correction in Context
Bellevue's median dropped from $1.61M a year ago to $1.48M today. That is a $130,000 decline. For buyers who have been priced out of the Eastside, this is the most accessible the market has been since 2021.
Kirkland is the exception. At $1.35M with +2.5% year over year growth, it is the only Eastside city in positive territory. Strong schools, walkable neighborhoods, and Lake Washington waterfront are holding values up.
Issaquah ($950K) and Woodinville ($985K) are two Eastside communities that have dropped below $1M, making them realistic alternatives for buyers who want Eastside access without a seven-figure price tag.
What This Means for Buyers
Use the summer window. Mid-July through late August is when motivated sellers start making concessions. Homes that listed in April and May without offers are ripe for negotiation.
Watch for price reductions. Sellers who started too high are cutting prices. A home that drops from $750K to $720K after 30 days on market is telling you the seller wants to move. That is your opening to negotiate further.
The Eastside is on sale. If you have been waiting for Bellevue, Redmond, or Woodinville to come down, this is what "coming down" looks like. Down 5% to 8.5% year over year with more inventory than we have seen in years.
Rates may keep dropping. The Fed has signaled potential rate cuts later this year. If rates drop to the low 6s or below, expect a surge in demand. Buying before that surge means less competition and better prices. Read the full buyer's playbook.
What This Means for Sellers
Price it right from day one. The first 7 to 10 days on market are when you get the most attention. Well-priced homes in the South Sound are still moving in under two weeks. Overpriced homes are sitting for 45+ days and chasing the market down.
South Sound sellers have leverage. If you own in Puyallup, Bonney Lake, Federal Way, or Auburn, you are in a rising market with strong demand. This is a good time to list.
Eastside sellers need realistic expectations. Pricing based on 2024 or early 2025 comps will leave your home sitting. Use the most recent comparable sales, not what your neighbor sold for 18 months ago.
Consider timing. If you are not in a rush, waiting for a potential rate drop could bring more buyers to the market and strengthen your position. Read the full seller's guide.
Frequently Asked Questions
Are Seattle home prices dropping in July 2026?
Seattle's median is $855K, down about 2.5% from a year ago and down $6K from June. Prices are softening, not crashing. The bigger story is the divergence: Pierce County and South Sound prices are rising 2% to 8.5% year over year, while the Eastside is correcting 4% to 8.5%.
What are mortgage rates in July 2026?
The 30-year fixed rate averaged 6.43% as of July 2, 2026 according to Freddie Mac. That is a seven-week low, down from 6.48% in June and 6.67% a year ago. The 15-year fixed is at 5.79%.
Is now a good time to buy a house in Seattle?
For buyers with the financial readiness, mid-summer 2026 offers one of the best negotiating environments since 2019. Inventory is up 35% year over year in King County, rates are trending down, and sellers are making concessions on price, closing costs, and repairs. The South Sound offers the best value, while the Eastside correction has created opportunities that did not exist a year ago.
Why are Eastside home prices falling?
Three factors: tech industry layoffs and hiring slowdowns have reduced buyer demand in the $1M+ segment. High mortgage rates make $1.5M+ homes very expensive to finance. And new construction in Bellevue and Redmond is adding inventory that competes with existing homes. Bellevue is down 8% and Redmond is down 5% year over year.
What is the most affordable city near Seattle?
Orting ($510K) and Graham ($542K) in Pierce County are the most affordable communities I track. Puyallup ($568K), Federal Way ($558K), and Auburn ($605K) also offer strong value with better commuter access. All of these are well below the King County median of $855K.
Where are home prices increasing in the Seattle metro?
The South Sound and select North Corridor cities are seeing year-over-year growth. Bonney Lake leads at +8.5%, followed by Lynnwood (+6.5%), Puyallup (+4.2%), Mountlake Terrace (+4.2%), Federal Way (+4.0%), and Kirkland (+2.5%). These markets are benefiting from buyer demand shifting away from higher-priced areas.
Have Questions About Your Market?
Whether you are buying, selling, or just trying to figure out where things are headed, I am happy to walk you through the data for your specific area.
More Resources
June 2026 Market Update - Previous month's data and analysis
All Market Updates - Monthly archive going back to April 2026
Buyer's Playbook - Full guide with neighborhood pricing and strategies
Seller's Guide - Pricing strategy, prep costs, and timeline
Work Visa Home Buyer Guide - Buying on an H-1B or work visa in Washington
South Sound Neighborhoods - Puyallup, Auburn, Kent, Renton, and more
North Corridor Neighborhoods - Lynnwood, Bothell, Shoreline, Edmonds, and more
What's My Home Worth? - Free home valuation for the Seattle metro