The Great Rebalancing: What a Difference Three Years Makes in the Eastside Market

Remember the spring of 2023? It feels like a lifetime ago in real estate years. Buyers, still reeling from the sticker shock of rapidly rising interest rates, faced a market with frustratingly few homes to choose from.

Fast forward to spring 2026, and the landscape has transformed.

The once-barren market is now flush with inventory, prices are finding a new equilibrium, and buyers are stepping back into the game with renewed confidence. This isn’t the frantic, overheated market of the recent past. Nor is it the gridlocked, uncertain market of last year.

This is the Great Rebalancing.

For the past several years, the Eastside story has been one of extremes — soaring prices, rock-bottom inventory, and then a period of adjustment as the industry recalibrated to a higher interest rate environment. As we move into spring 2026, the data shows something different:

A market finding its footing.

A Tale of Four Springs: The Eastside Market from 2023 to 2026

To understand where we are now, it helps to look at where we’ve been. The last three years tell a compelling story of a market in transition — culminating in the more balanced conditions we see today.

The structural shift is significant.

Eastside Micro-Market Callouts

While the broader Eastside shows rebalancing, each submarket is behaving slightly differently.

Bellevue

Luxury and tech-driven demand remain resilient.
Inventory has increased meaningfully, particularly in the $2M–$4M range, creating selective buyer behavior. Well-priced homes in prime school zones are still moving quickly, but discretionary pricing is being corrected faster here than anywhere else.

Kirkland

Water-adjacent and walkable properties continue to command premiums. However, days on market have lengthened compared to 2023–2024 levels. Buyers are negotiating inspection contingencies again — a major shift from peak competition years.

Sammamish

Newer construction inventory has expanded significantly. This has tempered price growth in larger home segments. Move-up buyers are active, but pricing sensitivity is higher than in prior spring cycles.

Woodinville

Land, rebuild opportunities, and semi-rural properties are seeing renewed interest as buyers regain confidence. However, homes that require substantial updates must now reflect today’s pricing reality — condition discounts are more pronounced than in 2022–2024.

From Scarcity to Selection: The Inventory Turnaround

The most dramatic change has been supply.

In spring 2023, buyers were chasing a handful of listings. By spring 2025, inventory had more than doubled. Today, in early 2026, active listings on the Eastside are up another 49% from those already elevated levels.

That increase in supply is the single biggest factor driving the rebalancing.

For buyers, it means:

• More choice

• More time

• More negotiating power

• Less urgency-driven decision making

This is the healthiest inventory environment we’ve seen in several years.

The Price Correction: A Return to Normalcy

After dramatic appreciation in 2021 and continued gains into early 2024, we are now seeing a necessary moderation.

The Eastside median home price in January 2026 settled around $1.44 million — approximately 16% below January 2025 levels.

Headlines may focus on the decline.

But this is not a crash.

It’s a recalibration following unsustainable growth. A return to pricing that better aligns with today’s interest rate environment and expanded inventory levels.

When combined with mortgage rates dipping closer to 6%, affordability has meaningfully improved compared to a year ago.

A New Chapter for Buyers and Sellers

For the first time in several years, the market is not heavily skewed in one direction.

For Buyers

The combination of:

• Increased inventory

• Moderating prices

• Slightly improved mortgage rates

creates a compelling entry window.

The best homes — well priced and well presented — will still attract attention. But buyers now have room to evaluate and negotiate thoughtfully.

Preparation remains key.

For Sellers

The market is no longer one where you can name your price and expect multiple escalation offers.

Pricing strategy matters more than ever.
Presentation matters more than ever.

Demand remains present — particularly in Bellevue luxury corridors, Kirkland lifestyle neighborhoods, and select Sammamish school zones.

Pending sales are up year-over-year, signaling that serious buyers are active.

The difference?
This market rewards alignment, not optimism.

The Great Rebalancing of 2026

The Great Rebalancing is not dramatic.

It’s healthy.
It’s strategic.
It’s sustainable.

It’s a market that rewards thoughtful decision-making over speed — and data over emotion.

Whether you’re considering buying in Bellevue, selling in Kirkland, repositioning in Sammamish, or evaluating land in Woodinville, hyper-local strategy now matters more than broad headlines.

If you’d like a personalized micro-market analysis for your neighborhood, I’m happy to provide it.

—
Jeff Harrison
The Reese Team
Compass Real Estate