Washington Real Estate: What Changed in the First Half of 2026 and What It Means for You
The first half of the year brought a wave of changes to Washington real estate, some announced, some already in effect. Whether you are holding property, considering a sale, or have been waiting for the right moment to buy, here is what is most relevant to you right now.
The Washington Millionaires' Tax Is Now Law
Governor Ferguson signed SB 6346 on March 30, establishing a 9.9% state income tax on annual income above $1 million. It takes effect January 1, 2028, with first filings due in 2029. Real estate sales, qualified family-owned businesses, and certain retirement income carry statutory exclusions, but the broader signal has been enough to move people. We have heard from a number of clients exploring a move out of state, or purchasing a second home elsewhere and shifting their primary address for tax purposes. Combined with Washington's existing estate tax, this has pushed many longtime residents to weigh how much the beauty of the PNW is worth against the cost of staying, or to start repositioning for what comes next. Worth noting: a referendum to repeal the tax has been filed and may appear on this fall's ballot, so this is not necessarily the final word.
The Tax That's Creating Buyer Opportunity
The same pressure pushing some owners to leave is creating real opportunity for those staying put. King County's luxury segment, homes above $2 million, has flipped into a genuine buyers' market for the first time in years, with inventory up nearly 84% and roughly six months of supply now on the books. On the Eastside, listings have surged across the board: Kirkland has roughly doubled year over year, with Bellevue, Sammamish, and Redmond all up 70% or more. Where sellers once expected an offer in five or six days, conversations now point to closer to a month.
Waterfront remains a bright spot within that shift. In 98166, the Normandy Park and Three Tree Point corridor, the year-to-date median has crossed $1,020,000, and buyer interest in Sound-front property has stayed steady even as broader luxury inventory has grown. It is a reminder that water access continues to set its own market, regardless of what is happening citywide.
The fundamentals have not moved. Cash buyers still account for over 40% of purchases above $2 million, and roughly three-quarters of Seattle buyers are searching from within the metro itself, not relocating in from out of state. Sound Transit's new light rail to Judkins Park and Mercer Island, opened in late March, only sharpens the case for staying close. If you have been waiting for room to negotiate, this may be the window.
Private, Off-Market Listings Are Now Restricted Statewide
Senate Bill 6091 was signed into law March 16 and took effect roughly 90 days later, in mid-June. It bans brokers from marketing a property to a limited or exclusive group of buyers unless that property is simultaneously marketed to the general public. In practice, this ends so-called pocket listings in Washington, making it the second state after Wisconsin to take this step. There is a narrow exception when public marketing would threaten a homeowner's safety. Violations carry a fine of up to $500 per infraction and put a broker's license at risk. The merits of government weighing in on how agents market property aside, it is now the operating reality, and every property going to market here will need to be public from day one.
Considering Options Beyond Washington?
For those weighing a move out of state, Trey is licensed in Texas and a great resource for homes in Austin. He has reconnected with Darin Walker of Moreland Properties, a longtime friend, and together they are well positioned to help. Whether you are drawn to Lake Travis or Lake Austin waterfront, Zilker Park and the Lady Bird Lake trails, or simply want to be near Austin's growing tech corridor, home to major employers including Tesla, Apple, Google, Meta, Amazon, and Samsung, Trey is happy to help you explore what a move might look like. For context, Austin's market has corrected meaningfully from its 2022 peak, with inventory still favoring buyers, though pending sales and absorption have ticked up in recent months, a sign the market may be finding its footing.
If we can help you think through any of the above, or if you are weighing a purchase or sale of your own, please reach out.
FAQs
What does Washington's new millionaires' tax mean for real estate owners? SB 6346 establishes a 9.9% state income tax on income above $1 million annually, effective 2028. Real estate sales carry a statutory exclusion, but the law's broader effect on the market, including increased luxury inventory and outbound relocation activity, is already being felt.
Is now a good time to buy in the Seattle or Eastside market? For buyers in the $2 million-plus segment, this is the most favorable inventory environment in recent memory, with supply up nearly 84% in King County's luxury tier. Waterfront and Sound-front properties in corridors like 98166 continue to hold strong buyer interest even within that softer broader market.
Can my agent still market my home privately before listing it publicly? Under SB 6091, signed March 16 and effective mid-June 2026, brokers in Washington may no longer market a property to an exclusive group unless it is simultaneously made available to the general public. A narrow exception exists for situations involving the health or safety of the owner or occupant.
Is Austin a realistic option for Washington homeowners considering a move? For those weighing a lower-tax state, Austin offers waterfront lifestyle on Lake Travis and Lake Austin, a deep tech employment base, and a market that has corrected meaningfully from its 2022 peak. Trey Danna is licensed in Texas and connected on the ground there.
