Washington Housing Market Alert: Are Prices Finally Starting to Fall

Washington’s story is more complex than Oregon’s because Washington has Seattle, a market with different dynamics than secondary cities.

The Seattle Anomaly

Greater Seattle held value remarkably well. Tech jobs, Amazon, venture capital money, these factors create structural demand. A median price correction happened, but from significantly higher peaks. Seattle peaked around $750,000+ it’s now around $650,000-$700,000 depending on neighborhood. That 5-8% correction is real but modest compared to other metros. And within Seattle proper...Capitol Hill, Queen Anne, Ballard, prices have been far stickier than suburbs like Kent or Federal Way.

Secondary Washington Markets

This is where the story changes. Spokane, Tacoma, Vancouver, these markets saw appreciation during the pandemic, then correction. Spokane peaked around $420,000, now around $380,000. That’s 10% down. Tacoma similar: from $480,000 to $420,000 range. These secondary markets are more price-sensitive than Seattle.

I work across both market types in Washington. The difference is profound.

Why Washington’s Markets Diverged

Seattle benefits from high-wage employment, international immigration, and investment activity that creates consistent demand. Secondary markets rely more heavily on local employment and first-time buyers both affected by interest rate increases.

When mortgage rates jumped, secondary market buyers got priced out harder. A Spokane buyer with $50,000 down can afford $100,000 less house at 7% rates versus 3% rates. Seattle buyers have more income cushion.

Current Market Status

In greater Seattle, we’re in buyer’s market but not desperate sellers. Properties still sell. Contingencies are more realistic. In secondary markets, it’s more pronounced buyer advantage. Negotiating room is real.

Price Trajectory Going Forward

I don’t expect Seattle prices to drop dramatically unless tech employment collapses unlikely. Secondary markets might see additional modest correction, but we’re mostly through correction now. Stabilization is underway.

For Buyers in Washington

If you’re buying in Seattle: prices have corrected but remain high by national standards. Expect to pay for location and job market access. Secondary markets offer value if you can work remotely or have local employment.

For Sellers in Washington

Price right for your market. Seattle sellers can still command premium pricing if properties are positioned correctly. Secondary market sellers need realistic expectations and strong marketing.

Bottom Line

Washington prices aren’t “dropping” uniformly. Seattle is holding. Secondary markets are correcting more noticeably. Understand your specific market within Washington before making decisions.