Washington Home Inventory Hits Highest Level Since 2014 as Sales Slow
Homebuyers across the Northwest Multiple Listing Service (NWMLS) area had more properties to choose from in September 2026 as housing inventory reached its highest level in more than a decade. However, fewer homes went under contract, closed sales declined and mortgage rates rose, creating a mixed picture for buyers and sellers across Washington.
According to NWMLS’s September market report, active listings increased 24.5% year over year to 24,965 properties. That was the largest selection of homes available in the service area since September 2014.
The increase gives buyers more opportunities to compare properties, but higher financing costs and relatively stable home prices continue to present affordability challenges.
Inventory Rises Across Most of the NWMLS Region
The number of active listings climbed from 20,052 in September 2025 to 24,965 in September 2026, adding more than 4,900 properties to the market. Inventory increased year over year in 24 of the 27 counties covered by NWMLS.
More available homes generally give buyers additional time to evaluate properties and compare asking prices. Sellers, meanwhile, may face greater competition as similar homes remain on the market.
King, Snohomish and Pierce counties accounted for more than half of the region’s active listings. King County recorded 8,058 active listings, a 31.1% increase from a year earlier.
The region ended September with 4.44 months of inventory, the highest level since February 2014. This measure estimates how long the current supply would take to sell at the prevailing sales pace if no additional listings entered the market.
Although the increase points toward a more balanced market than during periods of severe inventory shortages, conditions vary by county, neighborhood and property type.
Pending and Closed Sales Decline
Despite the larger selection of homes, buyer activity weakened in September.
Pending sales fell 15.1% year over year to 6,231, marking the steepest annual decline recorded during 2026. Closed sales dropped 8.9% to 5,623, the lowest September total since at least 2014.
Pending sales generally reflect properties that have gone under contract, while closed sales represent completed transactions. Both measures provide insight into market activity, although they capture different stages of the buying process.
The decline in transactions alongside rising inventory suggests that the additional supply has not yet translated into stronger sales. Higher borrowing costs and the cost of homeownership may be contributing to the challenge, although the market statistics alone do not establish a single cause.
Home Prices Remain Relatively Stable
The median sales price for residential homes and condominiums sold across the NWMLS service area was $625,000 in September, down 0.9% from $630,700 a year earlier.
The modest decline indicates that prices have remained relatively stable compared with the sharper changes in sales activity. However, the regional median does not mean every property has retained its value. Prices can move differently depending on location, home size, condition and the types of properties sold during the month.
King County’s median sales price was unchanged year over year at $850,000. The median price for a single-family home in the county was $949,975, illustrating the affordability challenges buyers may face in higher-priced parts of the region.
For buyers, stable prices combined with a larger selection may create opportunities to compare properties more carefully. For sellers, competition from additional listings makes accurate pricing and presentation increasingly important.
Mortgage Rates Add to Affordability Pressures
Mortgage rates rose significantly toward the end of September and continued climbing in early October. Freddie Mac reported that the average 30-year fixed mortgage rate reached 7.28% on October 1 and 7.40% on October 8.
These are national averages rather than Washington-specific rates, and individual borrowers may receive different offers based on their credit profiles, loan terms, down payments and lenders.
Higher interest rates increase the financing cost of a home purchase. As a result, buyers may find that a property within their target price range carries a larger monthly payment than expected.
The timing is also important: September’s completed sales reflect transactions negotiated earlier, while the latest mortgage-rate increases may influence buyers considering purchases in the following weeks.
What the Market Means for Buyers and Sellers
For buyers, the larger inventory provides more options and may create room to negotiate on price, repairs or seller concessions. Buyers should compare similar properties, review how long listings have been available and obtain current mortgage estimates before making an offer.
However, more inventory does not guarantee that every seller will accept a lower offer. Well-priced homes in desirable locations may continue to attract competition.
For sellers, the expanded supply means a listing must compete with more alternatives. Reviewing recent comparable sales, setting a realistic asking price and presenting the property well can help attract qualified buyers. Depending on the property and local competition, sellers may also consider concessions that address buyers’ financing or closing costs.
Washington’s Housing Market Enters a More Competitive Phase
September’s NWMLS figures show a clear shift in available supply: buyers have more properties to consider, while pending and completed sales have slowed. Prices, however, have not fallen at the same pace as transaction activity.
The result is a market offering greater choice without necessarily making homeownership affordable for every household. Future conditions will depend on mortgage rates, buyer demand, new listings and local economic factors.
For anyone planning to buy or sell, regional figures provide a useful starting point, but county- and neighborhood-level data will offer a clearer picture of the opportunities and challenges in a specific market.