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Why Seattle Is the Weakest Big US Housing Market Right Now

  • by- Grihik
  • Oct 17, 2026
Seattle's pending sales fell 24.4% in a year, the worst of 50 metros, while inventory jumped 20%. What is driving the slump.
Why Seattle Is the Weakest Big US Housing Market Right Now

Of the 50 largest U.S. metros, Seattle is posting the sharpest drop in homes going under contract. Two data sets from Zillow and Redfin put numbers on it.

What are the key numbers?

  • Pending sales (Redfin, September): down 24.4% year over year, the biggest fall among the 50 metros

  • Active listings (Zillow, September): up 20.3% year over year, the largest rise among the metros Zillow highlighted

  • Closed sales (Zillow estimate): down 8.7%

  • Home values (Zillow): down 2.2% year over year

How do other West Coast metros compare?

Redfin shows pending sales falling 16% in Los Angeles, 15.8% in San Diego and 15.5% in Anaheim, so the whole West Coast is under pressure.

 

What is behind it?

Redfin notes Seattle is expensive and that a bumpy local job market is curbing demand. Rising mortgage rates and high prices push potential buyers out, and listings keep rising while buyers pull back.

What does it mean for buyers and sellers?

Buyers in Seattle have more choice and more bargaining power than in most of the country. Sellers need to price carefully, since inventory is building quickly.

Where is the market holding up better?

Zillow's data show the Northeast and Midwest firmer, with Chicago values up 5.1% and New York up 4.8%.

FAQ

Which US metro has the biggest drop in pending sales? Seattle, down 24.4% year over year (Redfin, September). Are Seattle home prices falling? Zillow shows values down 2.2% over the year.