The West Seattle Housing Market Is Finally Turning a Corner for 2026

After several years of high mortgage rates and hesitancy from buyers, momentum is finally building again in the West Seattle real estate market. Sellers are returning, buyers are re-engaging, and for the first time in a while, we’re seeing real movement in neighborhoods like Admiral, Alaska Junction, Alki, and Fauntleroy. It’s not a dramatic surge, but it is a clear shift — one that’s setting the stage for a healthier market in 2026.

So, what’s driving this change? Here are the three trends helping West Seattle real estate pick up speed going into the new year.  

1. Mortgage Rates Are Slowly Drifting Downward

Yes, rates are still fluctuating — that’s normal, especially in an uncertain economy — but the bigger picture matters. Overall, mortgage rates have been trending down for much of this year. In the last few months, buyers have seen the best rates of 2025, and experts like Freddie Mac report that affordability is starting to improve. That matters here in West Seattle, where many buyers are budget-sensitive but eager to get into the neighborhood they love. Redfin data shows a buyer with a $3,000 monthly budget can now afford roughly $25,000 more home than they could just a year ago. More buying power = more activity.  

2. More West Seattle Homeowners Are Ready To Sell

For the past few years, many homeowners held onto their ultra-low mortgage rates, creating tight inventory across West Seattle. But with rates easing, that “lock-in effect” is loosening. Life changes — upsizing, downsizing, new jobs, lifestyle shifts — are prompting more locals to list their homes. Realtor.com data shows inventory nationwide rising toward the highest levels in six years, and West Seattle is following that trend. More available homes means more choices for buyers and a healthier, more balanced market overall.  

3. Buyers Are Re-Entering the West Seattle Market

With more inventory and slightly better affordability, buyers are stepping back in. Mortgage purchase applications are up compared to last year, and major forecasting groups like Fannie Mae, the MBA, and NAR all expect moderate sales growth into 2026. While this isn’t a sudden boom, it is a steady, meaningful recovery — one that West Seattle buyers and sellers have been waiting for.  

Bottom Line

After a few slower years, the West Seattle real estate market is finally turning a corner. Lower mortgage rates, more listings, and growing buyer activity signal real progress heading into 2026. If you’re thinking about buying or selling in West Seattle next year, now is the perfect time to understand your options and get ahead of the shift. If you want a local perspective on how these trends affect your plans, I’d be happy to help you navigate the West Seattle market with confidence.