February 2026 Housing Market Update: What More Inventory Means for Buyers and Sellers
The February housing data from the Northwest Multiple Listing Service just came out, and one thing is clear: inventory is rising across Washington state as we move toward the spring market.
For buyers who have been waiting on the sidelines, this could mean more choices and less competition. For sellers, it signals a market that still rewards well-priced and well-presented homes.
Let’s break down what the latest numbers really mean.
More Homes Are Hitting the Market
Housing inventory continues to expand across the region.
At the end of February, there were 13,341 active listings, which is nearly 28% more homes than a year ago. Inventory also increased 7.8% compared to January, showing that more sellers are entering the market ahead of the spring season.
This trend was seen across most of the state, with 19 of 27 counties posting double-digit inventory growth.
For buyers, this shift is significant. After several years of extremely limited supply, more listings mean more options, less urgency, and potentially more negotiating power.
Sales Activity Is Picking Up Month-to-Month
While closed sales were down 3% compared to February of last year, activity actually rose nearly 20% from January, suggesting the market is beginning to gain momentum.
This is typical as the market transitions from winter into spring.
Buyer engagement is also reflected in showing activity:
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Keybox accesses increased nearly 7% year-over-year
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Property showings remained steady month-to-month
In other words, buyers are actively looking — they just have more homes to choose from.
Home Prices Are Holding Relatively Steady
The median home price in February was $620,000, which is:
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Down 1.6% compared to February 2025
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Up 4.2% compared to January
This tells us prices are stabilizing rather than dropping dramatically.
In Western Washington, prices remain higher than the statewide median. For example:
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King County: $840,000 median price
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San Juan County: $732,500
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Snohomish County: $720,000
Mortgage Rates Dip Below 6%
One of the biggest developments in February was mortgage rates.
Rates dropped below 6% for the first time since September 2022, which could help improve affordability and encourage more buyers to enter the market.
However, lower rates haven’t yet translated into higher year-over-year sales — likely because many buyers are still adjusting to the changing market conditions.
Down Payment Assistance Expands Opportunities
Another important trend: more homes now qualify for down payment assistance programs.
In February:
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16,377 listings qualified for assistance programs
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This represents 76% of listings in the NWMLS database
For many first-time buyers, this could make entering the market more attainable.
What This Means for Buyers
If you're considering buying a home, this market shift could work in your favor.
You may start to see:
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More homes to choose from
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Slightly less competition
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Greater negotiating opportunities
With mortgage rates dipping and inventory increasing, this spring could provide some of the most balanced conditions buyers have seen in years.
What This Means for Sellers
For sellers, the market is still strong — but strategy matters more than ever.
Homes that are:
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Well-priced
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Professionally presented
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Move-in ready
are still attracting strong interest.
But with more listings coming online, preparation, staging, and pricing strategy will be key to standing out.
Final Thoughts
The housing market in Washington is shifting toward more balance, but it’s still very active — especially in high-demand areas like the Eastside and Greater Seattle.
For buyers, the growing inventory means opportunity.
For sellers, the right preparation can still lead to excellent results.
As we head deeper into the spring market, it will be interesting to see how buyers respond to lower interest rates and expanding inventory.
source: https://www.nwmls.com/market-snapshot-february-2026/
