In an analysis of 193,347 active listings as of July 14, 27.8 percent of active Tacoma listings received a price cut during the previous 30 days, the highest percentage among 17 major U.S. markets examined. Seattle followed at 24.5 percent, according to data released this week by real estate portal Movoto by Lower. The findings mark a dramatic shift in a region where sellers enjoyed years of soaring prices and bidding wars.
The wave of price reductions signals that power in the Puget Sound housing market is shifting toward buyers. Active listings in the Seattle-Tacoma-Bellevue metro jumped 20.6 percent year-over-year in June to 11,644 homes, compared with just a 1.9 percent increase nationally, Realtor.com reported. Meanwhile, pending home sales in the Seattle area plunged 15.6% year-over-year in July, the sharpest drop among major U.S. metropolitan areas, according to Redfin data published August 12.
For sellers who listed this summer hoping to capture top dollar, the message is becoming difficult to ignore: if buyers aren’t biting at your asking price, you’ll likely need to cut it—and you won’t be alone.
The numbers
How many sellers are cutting prices—and by how much
Tacoma and Seattle lead the nation in recent price reductions, with more than a third of all listings now below their original ask.
A new analysis from real estate portal Movoto by Lower found that Tacoma ranked No. 1 and Seattle No. 2 among 17 major U.S. markets for the share of active home listings that received a price cut during the previous 30 days. The analysis examined nearly 200,000 active listings across major metros as of mid-July 2026.
But recent cuts are only part of the story. Movoto also reported that 43.8 percent of Tacoma listings and 38.1 percent of Seattle listings were priced below their original asking price—meaning many sellers have adjusted expectations more than once. Among lower-priced Tacoma properties, 49 percent had received a price cut, the data shows.
Realtor.com data published by the Federal Reserve Bank of St. Louis shows the number of Seattle-Tacoma-Bellevue listings receiving price reductions climbing from 1,786 in February to 4,714 in June — an increase of more than 160 percent in four months. The trend accelerated into summer, a period that typically sees the strongest buyer demand of the year.
Key figures from the Movoto analysis
27.8% of Tacoma listings received a price cut in the 30 days before July 14, 2026—the highest rate among 17 major metros analyzed.
24.5% of Seattle listings received a price cut in the same period, second-highest nationally.
43.8% of Tacoma listings and 38.1% of Seattle listings were priced below their original asking price as of July 14.
193,347 active listings were examined across the 17 markets.
Why it’s happening
Surging inventory meets stubborn mortgage rates and tech layoffs
A combination of rising supply, high borrowing costs, and job insecurity is forcing sellers to lower expectations.
The Seattle area is experiencing a perfect storm of market headwinds. In early August, active for-sale listings in Seattle were up 17% from a year prior, the biggest increase among the 50 most populous U.S. metro areas, according to Redfin data. At the same time, the median U.S. home-sale price rose 3.2% year over year to $407,730, the highest July level on record, and the monthly average mortgage rate rose to a one-year high of 6.54% in July, Redfin reported August 12.
In the Seattle metro specifically, the median home-sale price is $809,479, roughly double the national average. Prospective house hunters are also grappling with a shaky tech job market: Layoffs at major employers like Microsoft and Amazon have hit some workers’ finances hard, and made others less confident about their job security, Redfin noted in its August 12 report.
“Seattle is a tech-driven market, and right now a lot of buyers are feeling cautious about layoffs, AI and job security,” said Chase Costello, a Redfin Premier agent in the Seattle area. “Tech workers aren’t moving between companies—or moving into the area—as much as they used to, and that means fewer people are trading up into new homes.”
Across Washington state, the number of active listings increased 19.8 percent year-over-year in July, according to the Northwest Multiple Listing Service. You can explore more about how Washington’s market compares to other states on our Washington state guide.
Price trends: what homes are actually selling for
Seattle median sale prices fell 3.6% year-over-year in July, Redfin reported, making it the second-largest decline among major metros. Redfin reported the city’s median home sale price at roughly $879,000, down 2.3 percent year-over-year, while the median price per square foot fell about 5 percent. In Tacoma, Redfin reported a median sale price of approximately $500,000, up 0.9 percent year-over-year, although homes were taking slightly longer to sell. Movoto’s own current Tacoma market data shows a July median list price of $499,950, down from $524,995 in 2025, with properties averaging 41 days on the market compared with 31 days a year earlier.
What it means for you
Buyers gain leverage; sellers face tough choices
The data points to a market where negotiation is back on the table and patience can pay off.
If you’re a buyer in the Seattle or Tacoma area, the numbers suggest you have more room to negotiate than you’ve had in years. More than 4 in 10 Seattle sellers were cutting prices on their listings in mid-August, and nearly 9% of Seattle sellers listed their homes for less than what they paid, according to data from Parcl Labs reported by MarketWatch on August 13. The national average for sellers listing below purchase price was 6.6 percent.
Buyers can use this environment to their advantage. Homes are sitting on the market longer—on average, homes in Seattle sell after 11 days on the market compared to 7 days last year, Redfin data for June 2026 shows—giving you time to conduct thorough inspections and negotiate repairs or concessions. If you’re a first-time buyer, check out our first-time buyer guide for strategies on making competitive offers in a shifting market.
For sellers, the data is a wake-up call. Overpricing your home in this market is likely to backfire. Homes that sit too long accumulate stigma, and you may end up cutting your price multiple times—a pattern the data shows is already common. Work with your agent to price competitively from the start, and be prepared to adjust quickly if showings are slow or offers don’t materialize.
If affordability is your biggest challenge, explore our assistance programs guide and zero-down options. Even as prices moderate, mortgage rates remain elevated, so understanding all your financing options is critical.
The official data sources
The Movoto by Lower analysis referenced in this article examined active listing data pulled July 14, 2026, across 17 major U.S. metros. Movoto is a real estate portal acquired by mortgage lender Lower in May 2025. Additional data comes from Redfin’s July 2026 housing market report, Realtor.com data published by the Federal Reserve Bank of St. Louis, and the Northwest Multiple Listing Service.
Quick answers
Seattle & Tacoma price cuts: common questions
Why are Seattle and Tacoma sellers cutting prices so much?
Three main factors: inventory has surged (up 17-20% year-over-year in the Seattle metro), mortgage rates remain near one-year highs around 6.5%, and tech-sector layoffs at major employers like Amazon and Microsoft have reduced buyer confidence and demand. Sellers who overprice in this environment are finding homes sit longer, forcing repeated price cuts.
Are home prices actually falling in Seattle and Tacoma?
Yes, in Seattle. Median sale prices in Seattle fell 3.6% year-over-year in July 2026, the second-largest decline among major U.S. metros. Tacoma’s median sale price was up 0.9% year-over-year at around $500,000, but list prices are down from 2025 and homes are taking 10 days longer to sell than a year ago.
What percentage of listings have price cuts right now?
As of July 14, 2026, 27.8% of Tacoma listings and 24.5% of Seattle listings received a price cut in the prior 30 days—the two highest rates among 17 major metros analyzed. Looking at cumulative cuts, 43.8% of Tacoma listings and 38.1% of Seattle listings were priced below their original asking price.
Is this a good time to buy a home in Seattle or Tacoma?
Buyers have more leverage than they’ve had in years. Inventory is up, homes are sitting longer, and sellers are more willing to negotiate. However, mortgage rates remain elevated (around 6.5% in July-August 2026) and prices, while moderating, are still high—Seattle’s median is roughly double the national average. Run the numbers carefully and get pre-approved before you shop.
How does this compare to the rest of the country?
Seattle and Tacoma are experiencing some of the sharpest shifts. Nationally, active listings were up only 1.9% year-over-year in June, compared to 20.6% in the Seattle-Tacoma-Bellevue metro. Seattle’s 15.6% drop in pending sales in July was the steepest among major metros. The Pacific Northwest is cooling faster than most of the country.
Should I wait for prices to fall further before buying?
Timing the market is difficult. While inventory is rising and prices are moderating, mortgage rates could move in either direction, and well-priced homes in desirable neighborhoods are still attracting multiple offers. If you find a home that meets your needs and you can afford the payment, waiting may not save you money—especially if rates rise. Focus on long-term affordability, not short-term price swings.