The Issaquah real estate market continued its shift toward balance in May 2025, with a notable rise in inventory and a slight dip in home prices, both signs that buyers may be gaining more options and leverage after years of competitive conditions.

The median sale price for Issaquah homes for sale in May was $1,174,000, representing a 4.6% decrease compared to May 2024. While Issaquah remains one of the Eastside’s more expensive markets, this year-over-year decline suggests some softening, particularly as buyers adjust to higher borrowing costs.

Inventory also tells a compelling story. There were 151 new listings last month, up 22.8% compared to a year ago, and 190 total homes for sale, a 57% increase year-over-year. This jump in supply has significantly expanded the choices available to buyers, giving them more room to negotiate and reducing the urgency that characterized past buying seasons.

Issaquah real etate spent a median of just five days on the market, which is unchanged from last May—indicating that well-priced homes are still moving quickly. However, showing activity is down. Listings averaged 4.7 showings in May, compared to 8.1 showings in May 2024. This drop may reflect more cautious buyer behavior or simply a broader distribution of interest across more available homes.

Perhaps the most telling metric is the 3.4-month supply of homes, up from 2.2 months in April and a 61.9% increase from May 2024. This figure—known as “month’s supply”—measures how long it would take for all current homes on the market to sell if no new listings were added. A 3.4-month supply still leans slightly toward a seller’s market, but it’s edging closer to balance, typically considered 4 to 6 months.

Mortgage rates remain a wildcard. The average 30-year fixed rate is now 6.89%, according to Bankrate. While some housing economists, like those at Fannie Mae, predict rates could dip to 6.2% by year-end, others like the Mortgage Bankers Association expect rates to hover around 6.6% by late 2025. These fluctuations will likely continue to shape both buyer demand and seller pricing strategy.

What this means for sellers: Pricing competitively is key. Homes are still selling fast, but the increase in supply and decreased showing activity means overpricing could lead to sitting on the market.

What this means for buyers: Patience may finally be paying off. With more Issaquah homes for sale and slightly less competition, now may be a good time to explore your options—especially if mortgage rates decline later this year.