Seattle housing: $874,421 median, 3,147 visible homes, and social housing tax rules

Seattle's late-summer housing market presents buyers and sellers with an unusual combination of slower price growth and rapid contract timing. Redfin's rolling three-month window ending August 2026 puts the city median sale price at $874,421, down 2.8% from a year earlier, while Zillow's August 31 Home Value Index places the typical Seattle home value at $833,192, down 1.6% year over year. Even with softer prices, well-positioned properties move quickly, averaging 15 days on market with a 99.6% sale-to-list ratio. 12

The table brings together three distinct time horizons: a three-month closed-sale window, a monthly index estimate, and a real-time listing snapshot. Each metric captures a specific dimension of transaction activity.

Seattle's median sale price dipped 2.8% over the three months ending August 2026 to $874,421, down from $899,000 during the same period in 2025. The price per square foot fell 6.1% to $533. Transaction volume also pulled back, with 2,220 homes sold in August compared to 2,475 in August 2025. 1

Despite lower price levels, bidding activity remains brisk. Redfin assigns Seattle a Compete Score of 82 out of 100, ranking the market as very competitive. Properties sell in a median of 15 days, compared to 13 days last year. The average sale-to-list price ratio reached 99.6%, down 0.39 percentage points year over year, showing that buyers continue to pay near asking price on closed transactions. 1

Zillow's Home Value Index provides an additional perspective. ZHVI tracks property-level Zestimates across housing types, isolating appreciation from shifts in the monthly transaction mix. Zillow's August 31 reading registered $833,192, down 1.6% year over year, with homes going to pending status in approximately 17 days. Because Redfin reflects actual sales contracts and Zillow estimates valuation across the entire housing stock, comparing both metrics offers a balanced view of local price performance. 2

Redfin's Seattle shopping page listed 3,147 visible homes for sale plus 11 early-access listings on September 14, 2026. This count represents an increase from the 2,965 visible homes recorded in late August, expanding the range of choices for active shoppers. 3

Shoppers should separate visible webpage inventory from a formal months-of-supply ratio. A live search page displays properties currently open for touring and offer submission. A formal months-of-supply metric calculates active MLS inventory divided by the monthly absorption pace. Because public city pages omit direct months-of-supply tables, the visible count serves as a live snapshot of available properties rather than an official inventory-depletion timeline.

Freddie Mac's Primary Mortgage Market Survey for the week ending September 10, 2026, set the national average 30-year fixed mortgage rate at 6.76%, up from 6.71% the prior week and 6.35% a year ago. The 15-year fixed mortgage averaged 6.09%, up from 6.04% the previous week and 5.50% last year. 4

Purchasing a Seattle median-priced home at $874,421 with a 20% down payment requires a loan balance of $699,537. At a 6.76% interest rate, monthly principal and interest equals $4,542. At the prior week's 6.71% rate, that payment was $4,518, an increase of $24 per month. Over a full year, the five-basis-point increase adds $288 to baseline borrowing costs. This calculation isolates principal and interest, omitting King County property taxes, homeowners insurance, HOA fees, and closing costs. 14

City initiatives are altering Seattle's housing landscape through dedicated revenue streams and zoning adjustments.

Seattle's Social Housing Tax took effect on January 1, 2025, after voters approved Proposition 1A. The city imposes a 5% excise tax on Seattle businesses paying compensation in excess of $1,000,000 to an employee. Following Director's Rule 5-981 finalized in June 2025, businesses file quarterly returns in 2026, with the Office of City Finance conducting administrative briefings to clarify compliance. Revenue generated by the tax directly supports the Seattle Social Housing Developer in acquiring and constructing permanently affordable residential housing throughout city neighborhoods. 5

Concurrently, Seattle is updating its residential development rules under Ordinances 127211 and 127219 to fulfill Washington state middle-housing legislation, House Bills 1337 and 1110. These measures allow up to four units on residential lots, increasing to six units near frequent transit stops or when including affordable housing. The rules also raise detached accessory dwelling unit allowances to 1,000 square feet, or 1,200 square feet for units containing three or more bedrooms. Seattle extended design submissions for its ADUniverse pre-approved plan gallery through July 15, 2026, speeding permitting for infill construction. 6

Rental fee regulations will also shift next year under Council Bill 121254, passed on August 11, 2026. Effective July 1, 2027, the ordinance caps late fees at $10 per month and mandates comprehensive fee disclosure across all rental listings. 7

Seattle's market demonstrates that softer annual pricing can coincide with intense transaction velocity. Buyers benefit from slightly lower entry prices than last year and a growing visible listing pool of 3,147 homes. However, competitive pressure requires fast offer preparation, as desirable homes go under contract within two weeks.

Sellers should align pricing expectations with the current 99.6% sale-to-list ratio. Accurate list pricing produces contract agreements within 15 days, while overpriced listings face extended marketing periods.

Key checkpoints for the coming weeks include Freddie Mac's autumn rate trajectory, the absorption rate of September's new inventory, and Seattle's ongoing implementation of middle-housing zoning updates.