Seattle Real Estate Market 2026: How a $755,000 Market Still Scores a 91

Seattle is one of the most expensive major markets in the United States. The median listing price is $754,950 as of February 2026. To qualify to buy at that price, a household would need an estimated annual income of approximately $200,663.

And yet PropertyIQ scores Seattle a 91 out of 100 as of February 28, 2026.

That apparent contradiction is worth understanding, because it reveals something important about how market conditions and affordability are two separate measurements.

Why the Score Is 91

The PropertyIQ Score measures supply-demand dynamics, price momentum, and valuation relative to fundamentals — not whether an average household can afford to buy. Seattle's score reflects the following:

Homes in Seattle are selling in 36 days on average as of February 2026. That is one of the fastest absorption rates among major metros in the country. For comparison, Tampa averages 80 days, Houston averages 54 days, and Austin averages 76 days.

Prices Are Rising

Median home values in Seattle are up 2.38% year over year as of February 2026, with a month-over-month gain of 3.42% in February alone. Zillow forecasts an additional 0.6% near-term appreciation as of December 2025.

Demand Is Absorbing Inventory

Seattle's pending-to-active ratio is 0.58 as of February 2026 — meaning more than half of all active listings are going under contract in any given period. Homes are selling at 99.75% of asking price as of November 2025.

Price Cuts Are Relatively Low

Only 12.59% of Seattle listings have taken a price cut as of February 2026, compared to 28.2% in Phoenix and 24.85% in Tampa.

The Caveat: Overvaluation

Seattle is approximately 85.2% overvalued relative to local fundamental value as of February 2026 — one of the highest readings in the country. Inventory has increased 38.53% year over year. Unemployment is 5.0% as of December 2025, elevated compared to the national baseline.

The median household income in Seattle is $112,594 (2023 Census) — among the highest of any major metro. That income level partially supports the high prices. But the gap between what fundamentals suggest homes should cost and what they actually cost is significant.

What This Means for Investors

A score of 91 does not mean Seattle is a good investment for every buyer. It means the current market conditions — demand, supply, price momentum — are strong by the index's measurements. Cash flow math is difficult at $755K median prices with rents averaging $2,187/month as of December 2025 (a gross monthly rent-to-price ratio of roughly 0.29%). Seattle is a long-term appreciation play for investors who can clear the entry price, not a cash flow market.

PropertyIQ score as of February 28, 2026. Listing and inventory data as of February 1, 2026. Forecast data as of December 2025. All data for informational purposes only.