Seattle & Kirkland Housing Market Outlook for 2026: What the Latest Trends Are Signaling
As we move into 2026, the Seattle and Kirkland real estate markets are showing early signs of a shift based on national trends. After several years defined by rapid appreciation, sharp rate increases, and then a prolonged period of hesitation, recent data suggests the market may be entering a new phase — one marked by stabilizing conditions and renewed momentum.
In this video, we break down what we’re seeing in the market right now and, more importantly, what these signals could mean for homeowners and sellers as 2026 unfolds.
A Market Transition Is Underway
The second half of 2025 quietly laid the groundwork for change. While headlines often focused on affordability challenges and slower sales, several leading indicators began pointing in a different direction — one that suggests the market is recalibrating rather than cooling further.
These shifts don’t mean a return to the frenzy of 2021. Instead, they point toward a healthier, more balanced environment where pricing, demand, and inventory begin to realign.
Mortgage Rates Are Providing Relief — and Confidence
One of the most important drivers of this transition has been mortgage rates. Toward the end of 2025, rates declined into the low-to-mid 6% range after spending much of the prior year above 7%.
While this change may seem modest on paper, its psychological and practical impact has been significant:
Monthly payments became more predictable
Buyers gained confidence to re-engage
Sellers began to see activity pick up after months of uncertainty
In markets like Seattle and Kirkland — where prices are higher and buyers are more payment-sensitive — even small rate improvements can meaningfully influence behavior.
Mortgage Applications Are Rising — A Leading Indicator to Watch
Another key signal pointing toward a shifting market is the rise in mortgage applications. By December 2025, applications reached their highest levels in several years.
Mortgage applications matter because they often precede market activity:
More applications typically lead to more showings
More showings often result in more pending sales
Pending sales become closed transactions in the months ahead
This uptick suggests that buyer interest is not just theoretical — it’s turning into action.
Pending Home Sales Point to Building Momentum
Pending home sales increased toward the end of 2025, reinforcing the idea that the market is finding its footing. Pending sales are one of the clearest forward-looking indicators, as they represent homes already under contract.
For Seattle and Kirkland, this trend is especially meaningful because it often signals:
Improved pricing alignment between buyers and sellers
Reduced standoff behavior in negotiations
A market that is moving again, even if gradually
Rather than a sudden surge, this looks like steady momentum — the kind that supports more consistent pricing and smoother transactions.
What This Could Signal for the 2026 Market
Taken together, these indicators suggest 2026 may be less about volatility and more about opportunity.
For sellers, this could mean:
A growing pool of qualified, motivated buyers
Less need for dramatic price reductions when homes are positioned correctly
The chance to list before inventory rises further
For homeowners watching the market, it points to a period where values may stabilize and begin trending upward again — supported by demand rather than speculation.
The key takeaway is not that the market is heating up overnight, but that it is shifting. And markets in transition tend to reward preparation, timing, and strategy.
Bottom Line
The Seattle and Kirkland housing markets are entering 2026 with signs of renewed momentum. Falling mortgage rates, rising mortgage applications, and increasing pending sales all suggest the market is moving toward a more balanced and active phase.
If you’re considering selling in 2026 — or simply want to understand how these broader trends apply to your neighborhood — having a clear, data-driven strategy will matter more than ever.
Every market shift creates opportunity. The question is how you position yourself to take advantage of it. Dive deeper into the trends from 2025 and what they may mean for 2026 in my full video below.
MEET VERONICA MORSS
As a Washington native, Kirkland expert, and award-winning agent, Veronica Morss brings unmatched local insight and a client-first mindset to every real estate transaction. With a proven track record in multimillion-dollar negotiations, she blends deep neighborhood knowledge with the latest marketing strategies to help buyers, sellers, and investors succeed across the competitive Greater Seattle market. Supported by eXp Realty’s global reach, Veronica combines hyper-local expertise with world-class resources to deliver exceptional results, especially within the luxury segment. Her commitment to creative solutions, cutting edge strategy, and white glove service makes her a trusted advisor throughout every stage of the real estate journey.
Veronica Morss, Real Estate Broker
206-853-3491