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This is a recurring series of blog posts taking a closer look at the U.S. economy and several major regional markets in Windermere’s nine-state footprint. Updates will be released on a quarterly basis.
Economic Overview
At the start of the second quarter, new geopolitical turmoil threatened to derail an expected rebound in housing market activity. The disruptions to energy markets and supply chains caused by the Iran war drove both inflation and interest rates up sharply. Mortgage rates averaged 6.41% over the entire quarter, erasing the welcome declines observed in the winter.
Source: Freddie Mac via FRED.
The war in Iran also reversed the past winter’s modest improvements in consumer sentiment, according to the University of Michigan’s Consumer Sentiment Survey.
Source: University of Michigan via FRED.
Remarkably (but less remarked upon), the labor market decisively improved in the first half of the year: employment levels reversed the stall seen in late 2025, posting solid gains throughout the spring, while job openings turned up in April and May. The stock market also posted strong year-to-date gains of nearly 10% by midyear, shaking off initial declines at the outbreak of the war.
In the final tally, the balance of macroeconomic tailwinds and headwinds did not send the housing market back into hibernation. The spring selling season saw time on market drop while sales climbed from the first quarter, following the seasonal trends that we see almost every year. Sales also increased year over year across most of the regions in this report, although they dipped slightly around the Seattle area. After two straight springs marked by geopolitical disruptions, there’s reason to hope that a quieter summer and fall leading into the midterm elections will provide the foundation for strong sales activity in the second half of 2026, especially if inflation cools and mortgage rates ease.
The following is a detailed overview of housing trends across six regional markets within Windermere’s footprint during the second quarter of 2026. They include:
- Greater Seattle Area
- Greater Portland Area
- Greater Sacramento Area
- Northwest Washington State
- Spokane, WA and Coeur d’Alene, ID markets
- Salt Lake County, UT
Greater Seattle Area (King, Snohomish, Pierce, and Kitsap Counties)
The Seattle-area housing market saw a more buyer-friendly spring selling season than expected. The spring increase in active listings outpaced year-ago levels, giving buyers more choices and putting pressure on sellers to consider accepting lower offers. The pace of inventory gains, however, slowed to just 16% year over year in June, which may mark an inflection point of slowing accumulation of active listings – a trend to watch in the third quarter.
The growth in active listings was supported by a continued flow of new listings in the second quarter. Some sellers who had waited out the uncertainty of late 2025 returned to test the market during the spring, but buyer demand did not increase enough to absorb all the additional supply.
Time on market dropped from winter levels, as is typical during the spring, but homes still took longer to sell than they did last year or in the prior two years at this time.
Closed sales lagged behind year-ago levels in April and May, before registering a 1% year-over-year gain in June. It’s too early to tell, but this could mark the beginning of an inflection point if buyers are starting to clue into the favorable inventory and pricing conditions.
Softer demand continued to show up in pricing. Median sale prices were generally flat to slightly below year-ago levels, as elevated inventory put downward pressure on prices.
Overall, the second quarter brought more choice for Seattle-area buyers and more competition for sellers. Well-priced homes continued to move, but most sellers needed more realistic list prices, paired with the best possible presentation, in order to sell quickly.
Greater Portland Area (Multnomah, Washington, Clackamas, and Clark Counties)
The greater Portland area began to swing from a buyer’s market back into balance, as inventory actually fell year over year, and sales began to climb.
Active listings fell below year-ago levels in April, and by the end of June were 6% lower than at the midpoint of 2025.
The flow of new listings contracted slightly, with 2% fewer new listings in the second quarter than in the same quarter of 2025. That modest inflow helped set the stage for the decline in active listings by midyear.
Homes sold faster than they did during the winter months, but the June data still point to a slower market than a year ago, with buyers taking more time and sellers facing greater price competition.
Sales activity climbed at an impressive pace, with 9% year-over-year growth for the quarter as a whole, including a 13% increase in June as compared to last year.
Median sale prices slightly lagged behind year-ago levels, with declines of about 2% year over year throughout the second quarter. That reflects the still-ample supply of listings to choose from, which kept the demand rebound from reigniting price growth…for now.
Portland’s second-quarter market looked balanced, with stable, still-reasonable pricing, stronger sales activity than we’ve seen in quite some time, and enough inventory to keep sellers from regaining clear leverage.
Greater Sacramento Area (Sacramento, Yolo, El Dorado, and Placer Counties)
The greater Sacramento area continued to show signs of swinging back toward balanced activity in the second quarter after shifting toward buyers during 2025.
By June, active listings were 8% below last year’s level, which had set a new cycle high of more than 4,700 homes for sale. This continued a trend of decelerating inventory growth, which moved past zero into modest inventory decline.
New listings remained volatile month to month, but the second quarter as a whole had 3% fewer new listings hit the market than in the second quarter of 2025. That has certainly contributed to the inventory slowdown noted above.
Average days on market fell below year-ago levels in June, marking the first year-over-year decline in time on market since 2024. That represents another major milestone in the shift away from a buyer’s market.
Closed sales climbed over the second quarter, particularly with June’s impressive year-over-year gain of 15%. Altogether, the quarter had 8% more closed sales than the same quarter last year, marking a major pickup in sales activity.
Median sale prices recovered from seasonal winter lows but remained close to year-ago levels: slightly higher in May but slightly lower, year over year, in April and June.
All in all, Sacramento’s second-quarter data suggest that last year’s inventory growth is keeping a lid on pricing, but strong sales growth and a modest drop in time on market indicate that demand is now outpacing supply.
Northwest Washington (Skagit, Whatcom, San Juan, and Island Counties)
Market conditions in the four northernmost counties of Western Washington continued to tilt toward buyers through the second quarter.
Active listings in June remained meaningfully higher than a year earlier, although the year-over-year growth rate decelerated to just 9% in June.
The flow of new listings kept growing, with 5% more new listings over the quarter than the same time last year.
Days on market dipped below year-ago levels in May and matched them in June, suggesting some stabilization in the balance between supply and demand. Third quarter’s data will give a clearer answer as to whether this truly marks an inflection point of the market returning to balance.
Closed home sales almost exactly matched last year’s second-quarter total, although sales volume grew sharply over the course of the quarter, culminating in strong 8% growth in June. This could signal a sales rebound in the third quarter, as buyers begin to take note of the favorable market conditions.
Median sale prices were mostly flat, holding onto 2025’s modest pricing gains over the previous two years.
Overall, the second-quarter data show that the Northwest Washington housing market remains tilted in buyers’ favor, but with some early indications that it may be starting to swing back toward balanced conditions.
Spokane, WA and Coeur d’Alene, ID Area (Spokane and Kootenai Counties)
The greater Spokane-Coeur d’Alene region, spanning the Washington-Idaho border, looked like a balanced-to-seller-friendly market in the second quarter, as inventory growth cooled and sales activity hummed higher.
Active listings in June were just barely (2%) higher than year-ago levels, after years of double-digit growth that continued through the first quarter of 2026.
New listings were slightly higher than year-ago totals, with 3% more listings for the quarter as a whole, helping to replenish supply despite healthy sales activity.
Days on market dipped below year-ago levels in May and June, a major milestone that suggests a shift away from buyer-friendly conditions and reflecting renewed buyer demand.
Closed sales for the quarter were up 5% year over year, building on gains from the previous year and marking a major pickup in sales activity after a sluggish winter in the region. June’s total of more than 1,000 single-family homes sold was particularly impressive, coming in 12% above last June’s total and indicating strong sales momentum heading into summer.
Average sale prices were up in April and May but roughly flat year-over-year in June, showing that the ample inventory built up over the spring could help to blunt the risk of price appreciation as demand grows, at least for now.
Altogether, the greater Spokane-Coeur d’Alene area looked balanced through the second quarter, with modest gains in sales and prices but enough inventory growth to keep the market from overheating.
Salt Lake County, Utah
In the second quarter of 2026, the Salt Lake County market continued to show stronger sales activity than many of its peer markets, and inventory began to decline modestly.
Active listings ended the month of June 6% below year-ago levels, decisively closing the door on the prior two years of inventory buildup.
The reversal of inventory growth could be explained in part by the sudden dropoff of new listings. All told, the flow of new listings hitting the market declined by 4% from the same quarter last year.
Days on market declined seasonally into the second quarter, but by the end of the quarter they remained near, or slightly above, year-ago levels. This shows the market is not decisively swinging in buyers’ favor.
Closed home sales over the second quarter were 5% higher than the same period in 2025, continuing the rebound in buyer activity that began earlier in the year.
Median sale prices continued to post year-over-year gains through June, with stronger growth later in the quarter but lots of month-to-month noise.
Salt Lake County’s second-quarter market saw a healthy turn toward more sales activity without breakneck sale speeds. The decline in active listings, coupled with rising price appreciation, could suggest the beginning of a seller-friendly phase, but third-quarter data will help distinguish whether this is just a blip or a real inflection point turning back toward a seller’s market.
Conclusion:
Through mid-2026, the housing market proved remarkably resilient to the shock of rising mortgage rates and geopolitical turmoil. All of the markets highlighted in this report saw the usual spring lift in demand, and many outpaced year-ago comparisons. Conditions generally favored neither buyers nor sellers decisively, but the balance varied meaningfully by region. The Seattle area is still grappling with rising inventory and declining sales, while most of the other regions in this report have begun to turn the corner into a phase of flat-to-falling inventory coupled with growing sales.
These subtle shifts between buyer-friendly and more balanced conditions are making for a complex market to predict. Buyers will find more options and more room to negotiate in inventory-heavy areas, while still facing affordability constraints from elevated borrowing costs. Sellers need to recognize that a seasonal increase in buyer traffic does not guarantee multiple offers or rapid price appreciation, but many will still sell quickly with the right list price and positioning.
As the third quarter begins, it will be crucial for anyone trying to buy or sell a home to track local trends with the help of a skilled real estate professional. The ceasefire in Iran and easing inflation could bring more buyers into the market who sat out the spring, while sellers may become more motivated to sell rather than wait to re-list next spring. Summer is the least predictable season in the housing market, and this year looks to be no exception.
Sources: TrendGraphix analysis of NWMLS, RMLS, Spokane MLS, Coeur d’Alene MLS, MetroList MLS, and Wasatch Front MLS data. All charts are restricted to single-family residential home listings and sales.
