2026 February Housing Market Update

By Matt Stark

Matt Stark is a top 1% REALTOR® in Seattle with over 19 years of experience. A Seattle native, he began his career in 1999 as an investor before transitioning to full-time real estate.

More homes are hitting the Seattle market earlier than usual, which naturally prompts people to ask the same question. Is this the point where prices start to slip? Not necessarily. When I look at the market each month, I focus less on headlines and more on the numbers that actually tell the story. Right now, those numbers show a market with growing inventory, steady buyer demand, and pricing that is still holding together.

To understand what that really means for buyers and sellers this spring, it helps to look at the specific trends driving the market right now.

Inventory is steady. Right now, we’re sitting at just over 1,000 active listings in the Seattle market as of the end of February. That number might not seem unusual at first, but the timing is what stands out.

Last year, the market didn’t reach that level of inventory until May. In 2024, it took until July to get there. This year, we reached that point much earlier, which suggests the supply of homes is building sooner than in recent years.

More listings can create more options for buyers, but the real question is whether demand is strong enough to keep up with that supply.

Buyer demand is still strong. One of the most useful ways to measure demand is by comparing the number of homes that go pending each week to the number of new listings entering the market.

So far this year, the number of homes going under contract has consistently exceeded the number of new listings coming onto the market. That tells us buyers are still actively competing for available homes.

In other words, even though inventory is growing, demand is still absorbing much of that supply.

What price reductions tell us. Another signal I watch closely is the percentage of listings that reduce their price. When that number climbs, it often means sellers initially priced their homes too high, or that buyer demand is slowing. Last year, about 10-11% of listings reduced their prices each week.

This year, that figure has dropped to the 7-8% range. That is much closer to what we typically see in a balanced market and suggests pricing across the region is holding relatively steady.

While the market appears stable right now, inventory growth is something worth watching.

If the number of homes for sale continues to rise significantly compared with previous years, that could eventually shift the balance between supply and demand. When that happens, homes often stay on the market longer, and sellers may need to adjust their pricing expectations.

For now, though, buyer activity appears strong enough to keep the market moving.

Why these numbers matter for buyers and sellers. Understanding these trends can help both buyers and sellers make more informed decisions.

For sellers, it highlights the importance of pricing a home correctly and preparing it well before listing. For buyers, increasing inventory may create more choices and slightly less competition than in previous years.

The Seattle housing market is rarely defined by a single number. Instead, it is the relationship between supply, demand, and pricing that tells the real story.

If you have questions about the Seattle housing market or want to talk about your plans this year, feel free to reach out at 206-940-4557, email matt@mattstarkrealestate.com, or visit searchhomesnw.com. As we move further into the spring market, these are the trends worth watching because they can shape pricing, timing, and strategy in a very real way.