23 Seattle Suburbs Where Home Prices Just Dropped | King County Market Shift

King County Real Estate Headlines Are Misleading

What if the entire narrative about King County real estate is wrong? On the surface, the headline says median prices are up 2.1% year over year. It sounds stable, even healthy. But that single number hides a very different story underneath—one that could cost buyers tens of thousands if they don’t look deeper.



I’m Anton Stetner, and today we’re cutting into the real data. Because while the county average looks calm, there are specific pockets in King County seeing steep declines right now. This isn’t a crash, but it is a short-lived discount window—and it’s closing fast.

The “Stable Market” Story Doesn’t Match the Ground Truth

Let’s start with the overall county data:

• Median sales price last month: $975,000
  
  
• Year-to-date median: $990,000
  
  
• Median price appreciation YoY: +2.1%
  
  
• Homes for sale: up 33%
  
  
• Days on market: up almost 30%
  
  

So what’s really happening? Inventory is rising quickly, homes are sitting longer, and we’re returning to a more normal market. But inside that normalization are neighborhoods that are clearly underperforming—and that’s where the buyer opportunities live.

23 Suburbs Are Quietly Sliding—Some by Double Digits

Here’s the part most headlines ignore: 23 suburbs inside King County are experiencing price declines month over month, ranging from about 5% to as high as 30%.

When buyers hear “King County is up 2.1%,” they assume no deals exist. That assumption is wrong. Deals are absolutely on the table right now—but only if you know where to look.

The Biggest Discount Zones Right Now

Let’s walk through a few notable examples:

Bothell (98011):
Median price dropped from $1.3M in Sept 2024 to $895K in Sept 2025 — roughly 30% down month over month. Year to date, it’s still down 5.4%. That’s one of the best discount zones in the county right now.

Pacific:
A 27% month-over-month drop, and still down 3.6% year to date. That tells you the trend isn’t a one-off wobble—this area is softening.

Seattle 98105 (U-District / Ravenna / Bryant / Laurelhurst):
Down 24% month over month, from about $1.3M to $965K, while year-to-date is only up 1%. Translation: appreciation is below inflation, meaning some homes are rising, others are falling—and the falling ones are where your deals hide.

Seattle 98112 (Capitol Hill / Montlake / Madison Park / Madison Valley):
Down 17% month over month, but up 8.3% year to date. That’s a classic “bad month, not a bad market” signal. The discount window here is likely shrinking faster than elsewhere.

Across the list, you’ll see the same pattern: month-to-month volatility plus year-to-date softness in certain locations. When both metrics are negative, that’s a real downward trend—not just seasonality.

Why This Isn’t 2008 All Over Again

Let’s be clear: this is not a foreclosure-driven collapse.

Foreclosure rates remain extremely low across King County. The difference today is that this is a W-2 correction, not a subprime meltdown.

What’s driving it?

• High interest rates
  
  
• Inflation eroding buying power
  
  
• Consumer uncertainty (tariffs, global politics, election noise)
  
  
• Sticker shock at today’s affordability levels
  
  

That combination is cooling demand in price-sensitive areas, creating short-term softness for motivated sellers.

Wish Sellers vs. Motivated Sellers

Here’s how the market splits right now:

Wish sellers are testing high prices and sitting on market. They don’t need to sell. These listings will likely drift downward or get pulled for winter.

Motivated sellers are the ones creating real discounts. They’re selling due to life, timing, finances, or urgency. Those are the properties buyers can negotiate hard on right now.

That’s why certain suburbs are seeing steep drops: motivated sellers are resetting the local pricing faster than the rest of the county.

Ultra-Luxury Is a Different Planet

While many traditional areas are softening, the ultra-luxury market (above $2.5M) is still appreciating.

Why? Because we’re seeing a K-shaped recovery:

• Asset-heavy buyers are growing wealthier and buying confidently.
  
  
• Middle-market buyers are getting squeezed by rates and inflation.
  
  

So the high end keeps moving upward while the middle cools. That split is visible in places like Bellevue, Kirkland, Medina, and premium Seattle neighborhoods.

Why Deal Season Will End Soon

The biggest reason this opportunity won’t last? Debt is getting cheaper.

The 10-year treasury has been trending down and is now sitting below that key 4% level. That drops mortgage rates over time. If this trend holds, we’re likely heading toward upper-5% interest rates into 2026.

Lower rates bring buyers back fast. And because the Seattle Metro is roughly four years behind on new construction, supply is still pinched. More demand + low supply = rising prices again.

That’s why this correction window matters now.

What Buyers and Sellers Should Do Next

First-Time Home Buyers

Stop hunting only in the hottest, most expensive core zones. The best entry points right now are in these softer suburbs where you can:

• negotiate price
  
  
• get closing costs covered
  
  
• secure inspection timelines
  
  
• buy down interest rates
  
  
• include more contingencies
  
  

You’ll build equity faster buying in a discounted pocket than waiting for a “crash” that may never arrive.

Move-Up Buyers

Your best strategy depends on where you’re selling and where you’re moving. Some neighborhoods are cooling faster than others. Timing matters more now than in the last few years.

Wish Sellers

This isn’t your moment. If you don’t need to sell, wait for spring. Inventory pressure and longer days on market are forcing price cuts right now, and you don’t want to be in that wave.

Investors

This is still one of the best buying environments we’ve seen since 2012 or 2020. But it’s not permanent. Locking something down now in a discounted pocket could become a major win once rates ease.

The ADU / DADU and Middle Housing Play

One of the strongest opportunities moving forward is the ADU / DADU strategy in King County.

Adding rental units or entitlement-ready structures can increase value dramatically—sometimes without even building them yet. The market is shifting toward density, infill, and utility, which makes these moves powerful.

The same goes for middle housing—duplexes, triplexes, fourplexes, and sixplexes. Expect more of this to show up as zoning and infill development continue changing the county’s housing supply.

Final Take: This Is the End of Deal Season

This isn’t a crash. But it is a rare correction window.

There are real discounts right now in King County, some neighborhoods down double digits month over month, and this is the clearest buying opportunity we’ve had in years.

If you’re ready to act, this is your window. If you wait for a bigger fall, you may miss the chance entirely.