09/05/2026
This is what my inbox looks like these days - price improvements and cancelled showings. But I don't see it as all doom and gloom.
The Pacific Northwest has one of the most robust economies in America. Look at all the huge companies that call this area home. Seattle has be near or at the top of economic strength ratings for going on two decades. So the days of having a billboard on the edge of town saying "Will the last person leaving SEATTLE -- Turn out the lights" are over in my opinion.
That doesn't mean there isn't a huge shift underway right now. After years of unsustainable growth in the real estate market, there is a perfect storm of events that are impacting the market:
1) Interest Rates - despite railroading Jerome Powell and installing a new guy, the Fed is keeping interest rates high due to developments in the bond market, the war in Iran and the overall state of the economy.
2) Tech and AI. There is a very real sense of anxiety among a large chunk of tech workers as the big companies sink more and more money into the AI race. Layoffs and insecurity among the high wage earners impacts the entire area.
3) Historic Valuations - people have been super stubborn to abandon the historic valuations in their neighborhoods from a few years ago. That makes for homes staying on the market much longer and then you get the email for the "price improvement." This is incredibly difficult psychologically after spending years counting on that number in your future planning.
But keep in mind the amazing run we've had in the PNW. For many years, there were double digit gains in real estate year after year after year.
This is also a time for many buyers that were priced out of being an owner a few years ago to step in and get a more reasonable price and terms on a house.
I'd love to hear your take on how you are feeling about the market right now. Is it fear, panic, excitement? Let me know!
