Windermere sees western housing markets rebalance in Q2 2026

Windermere Real Estate’s second-quarter regional report says housing activity held up across much of the Western U.S. despite higher mortgage rates and spring market disruptions. Seattle stayed buyer-friendly, while Portland, Sacramento, Spokane–Coeur d'Alene and Salt Lake County moved closer to balance.

Why it matters: - The Western housing market is no longer moving in one direction. - Buyers and sellers now face sharply different conditions by metro and county, making local pricing, inventory and timing more important. - A few markets are shifting away from the buyer-friendly conditions that dominated the past two years.

What happened: - Windermere Real Estate released its Second Quarter Regional Real Estate Report covering nine states in the Western U.S. - The spring selling season came in better than expected despite fallout from the Iran war and mortgage rates averaging 6.41% for the quarter. - Sales rose year over year in five of the six closely tracked markets. - Jeff Tucker, Windermere Real Estate’s principal economist, said the spring market proved resilient and that Seattle remains elevated in inventory while Portland, Sacramento, Spokane–Coeur d'Alene and Salt Lake County are showing early signs of moving toward balance. - Tucker also said buyers and sellers need to pay attention to hyper-local conditions because market conditions differ sharply by area.

The details: - Greater Seattle Area, including King, Snohomish, Pierce and Kitsap counties, remained the most buyer-friendly of the six tracked markets. - Seattle-area active listings kept rising year over year, though growth slowed to 16% in June. - Seattle-area median sale prices were flat to slightly lower than a year ago. - Seattle-area closed sales lagged early in the quarter before edging up 1% year over year in June. - Greater Portland Area, covering Multnomah, Washington, Clackamas and Clark counties, moved from a buyer’s market back toward balance. - Portland active listings fell 6% below year-ago levels by June. - Portland sales climbed 9% for the quarter and 13% in June. - Portland prices remained about 2% below year-ago levels. - Greater Sacramento Area, including Sacramento, Yolo, El Dorado and Placer counties, saw inventory decline 8% year over year by June after peaking in 2025. - Sacramento-area closed sales rose 8% for the quarter and jumped 15% in June. - Sacramento-area days on market fell below year-ago levels for the first time since 2024. - Northwest Washington, covering Skagit, Whatcom, San Juan and Island counties, continued to favor buyers. - Northwest Washington active-listing growth slowed to 9% year over year in June. - Northwest Washington closed sales matched last year’s total for the quarter and rose 8% in June. - Spokane, WA and Coeur d'Alene, ID, covering Spokane and Kootenai counties, saw inventory growth cool to 2% year over year in June after years of double-digit gains. - Spokane and Coeur d'Alene closed sales rose 5% for the quarter and were up 12% year over year in June. - Salt Lake County active listings fell 6% below year-ago levels. - Salt Lake County closed sales rose 5% for the quarter. - Salt Lake County median sale prices posted year-over-year gains through June. - The report said Salt Lake County may be tilting back toward sellers. - Windermere linked the report to a full version with charts for each market: the full Second Quarter Regional Real Estate Report.

Between the lines: - The report points to a regional market that is rebalancing unevenly rather than recovering all at once. - Higher borrowing costs and geopolitical disruption did not stop demand, but they did keep the market sensitive to local inventory shifts. - Markets with cooling inventory growth and stronger sales appear to be regaining footing faster than Seattle, where supply still weighs on prices. - Tucker said an end to hostilities in Iran and cooling inflation could bring sidelined buyers back in the third quarter, while sellers who delayed listing may become more active. - Tucker also warned that summer is the hardest season to forecast.

What's next: - Windermere expects third-quarter conditions to depend on interest rates, inflation and whether sidelined buyers return. - More seller listings could come if homeowners who waited in spring decide not to delay until next year. - Buyers and sellers are being urged to work with local agents because market conditions vary widely by neighborhood and county.

The bottom line: - Western housing markets are stabilizing at different speeds, and the best deals and the strongest leverage now depend on the exact local market.