February 2026
Market Update

The big headline right now is that the market is continuing to normalize. We are no longer operating in a scarcity-driven pricing environment.

Inventory is rising, buyer demand has stayed relatively steady, and the result is a market that's starting to behave much more like a traditional housing cycle rather than the extreme seller's markets we saw from 2020 through early 2022.

We just got the market stats from February, so I am talking closed sales, pending sales, sales prices, etc., and we are going to go over what we are seeing in a few markets, as well as what I have been seeing recently with my listings and my buyers.

I always do these in the morning, so it is also coffee time!

I am going to be focusing on the Eastside — aka Bellevue, Redmond, Kirkland, and beyond — but will also touch on Seattle and Snohomish County.

Starting with inventory on the Eastside, and this is residential only so just single-family homes, not condos — we will look at condos in a little bit. Active listings on the Eastside increased to 879 homes, which is about a 58% increase compared to this time last year. That pushed our months of supply to about 2.3 months, up from 1.5 months a year ago.

Now, that sounds like a big jump, but it's important to put it into context. We're not seeing demand collapse — pending sales are essentially flat year over year — which means homes are selling.

Another factor helping the market stabilize is improving affordability. Mortgage rates have declined to about 6.1%, compared to about 6.8% this time last year. When you combine that with modest price adjustments in parts of the market, the median monthly principal and interest payment dropped about 14%, going from $11,033 per month down to $9,444. That's a huge shift for buyers! And not just those looking at median-priced homes — at any price point it is a big deal!

Now there has been a 7% year-over-year decline in price that headlines will focus on, but that framing misses the larger story. February's $1,566,782 median represents the strongest pricing since early fall and comes after a period of inventory expansion and payment-driven adjustment. The market has corrected modestly off last year's peak.

One of the most interesting things we're seeing right now is that the market has clearly split into two very different segments. Homes that are well priced and well presented are still moving very quickly. About 54% of homes on the Eastside are selling in less than 15 days, and many of those are selling at or very close to their list price.

But at the same time, we're seeing another group of listings that are sitting much longer. About 18% of homes are staying on the market for more than 90 days, and when those eventually sell, they're typically closing at around 91% of their original list price.

So what that tells us is that pricing strategy matters more than ever right now — that coupled with preparation. Once a listing passes that 30-day mark, the gap between the original list price and the eventual sale price tends to widen pretty quickly. That's where we start seeing larger price reductions and concessions. In other words, this is no longer a market where you can rely on momentum to carry a listing. It's much more of a strategy-driven market.

For sellers, that means entering the market with the right price and strong presentation from day one. Homes that hit the market aligned with buyer expectations are still seeing strong activity and relatively fast sales. I know, when I have a listing I treat coming on the market like a brand launch — everything has to be intentional: the pricing, the marketing, the presentation. You only get one chance at a first impression to a buyer and if it's my listing I want to give it the best possible chance.

For buyers, the environment is a little different than it was a few years ago. There's more choice, slightly better affordability, and in some cases more room to negotiate depending on the property. I have a buyer closing in a few days that I was able to negotiate some pretty great concessions for.

Overall this is exactly what I have been seeing with my clients. Specifically with buyers I am seeing some of my clients constantly finding homes that are presented well and priced well in desirable Eastside neighborhoods and some of those homes are going over list price or selling with an offer review date. Whereas with other buyers I am working with, they are constantly drawn to homes that have been sitting and in those cases we are able to negotiate the price down — and that has been a huge win for them!

Knowing the market — understanding individual neighborhoods and having strong relationships with other agents — makes a huge difference. Not just when it comes to listing a home, but also when it comes to helping buyers succeed, whether that be knowing when we are going to have to compete for a property or when we will be able to negotiate more than we thought possible off a property.

Now touching on Seattle residential homes, we're seeing a slightly different dynamic than we did for single-family homes on the Eastside. Inventory there has also increased, but demand has actually grown alongside it, with pending sales up about 8% year over year and prices remaining relatively stable. So Seattle is absorbing new listings a bit more quickly than the Eastside at the moment.

Overall, the takeaway for February is pretty straightforward. Supply is expanding, demand is steady but more selective, and pricing strategy has become the defining factor in whether a home sells quickly or lingers on the market. This is no longer a velocity market — it's a skill market.

If you're thinking about buying or selling on the Eastside this year and want to talk through what these trends mean for your specific situation, feel free to reach out — I would love to help! If you are wanting any full reports for certain areas or just what I have been seeing in specific markets, please reach out and I would be happy to share them with you!

If you don't know me, my name is Bella Chaffey Lakic. I have been a realtor in the greater Seattle area for over 7 years. Born and raised on the Eastside, I know this area inside and out and I would absolutely love to help break the area down for you if you're thinking of relocating here, or help with any of your local buying, selling, or investing needs! Thanks for watching, and I'll see you in the next one!