Seattle Condo Market Data

Seattle's condo market is tilting toward sellers in the strongest buildings, while remaining balanced to slightly buyer-friendly in the rest. The key differentiator right now is building quality. Condos in well-managed buildings with healthy reserves, low investor concentrations, and prime urban locations are moving faster and holding value. Meanwhile, buildings with deferred maintenance or upcoming special assessments are sitting longer and requiring price adjustments to close.

Interest rates in early 2026 have settled into a range that most buyers can plan around. The initial shock of higher rates has faded, and buyers who stayed on the sidelines through 2024 are re-entering the market with clearer expectations. The rate environment is no longer the primary obstacle for most condo buyers. Instead, the conversation has shifted to building selection and total cost of ownership, including HOA dues, reserve health, and long-term value trajectory.

On the supply side, Seattle's new construction pipeline has slowed considerably compared to the 2018-2022 boom. Fewer new condo towers are breaking ground, which means less future competition for existing buildings. This is particularly impactful in South Lake Union and Downtown, where the best towers from recent years are now stabilized and beginning to appreciate as new supply dries up. Builders are pivoting toward rental projects, which further constrains condo inventory.

Neighborhood momentum continues to favor South Lake Union and Downtown, both benefiting from ongoing corporate investment, improved transit access, and walkable lifestyle amenities. Capitol Hill remains popular with younger buyers drawn to the neighborhood character, though inventory there is limited and turnover is slower. My outlook for the remainder of 2026 is cautiously positive: expect steady appreciation in the 2-4% range for quality buildings, with the gap between strong and weak buildings continuing to widen. Buyers who do their homework on building fundamentals will be well positioned. Those who chase price alone will likely regret it.