Olympia, Washington Housing Market

How much can you negotiate in Olympia?

Only 57 out of every 100 homes for sale have found a buyer. The other 43 are still waiting. Your offer may be the only one on the table. About 1 in 5 sellers has already dropped their price. Each one has learned their first price was too high. Start below their new price, not their old one.

A typical Olympia home takes 39 days to find a buyer. Half of them take even longer. That is 5% slower than a year ago. Those sellers are paying to own a house they want to sell. Search for homes listed 60+ days ago. There are 589 homes for sale in Olympia. That is 7.4 times the tightest month on record, but below the peak of 633. Supply is growing against last year.

What to do about it

• Start in 98512, 98501, and 98506. Those are the three softest ZIP codes in Olympia.
• Filter for homes listed 60+ days ago that have already cut their price.
• Offer below the reduced price.
• Keep your inspection and financing contingencies.
• In 98512 only 44 out of 100 homes have a buyer. You can lose a few offers there and still win.

Is now a good time to buy in Olympia?

Asking prices are 5.6% below their Oct 2023 peak. You are not buying at the top. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower. Olympia prices have risen in 100 of the last 108 months. Drops here have been short and shallow. Buying in a slow month has rarely hurt a long hold.

There is no rush. Prices are still coming down. Watch the homes you like. Come back after they cut. Let the seller move first.

Who will rent from you in Olympia?

In Olympia, 33 out of every 100 households rent. Most own their home. The renter share is shrinking. Five years ago it was 36 in 100. Renter households average 2.2 people. Two and three bedrooms fit the typical renter.

Households grew 8% in five years. The housing stock grew 7%. The two are moving in step. Just 5.0% of homes sit empty. A well-priced rental fills fast here.

The median Olympia household earns $99,284 a year. Incomes here have grown 5.9% a year since 2019. Incomes are rising faster than home prices. Affordability is improving. A typical home costs 6.0 times the median income. Most locals cannot buy. That keeps rental demand deep. It also caps the rent they can pay. A tenant on the median income can pay about $2,482 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast.

That is the market, not your address. Run an address through the app to see its rent estimate and cash flow.

What numbers should you underwrite an Olympia deal with?

• Price growth to assume — +3.2%/yr. Olympia grew 7.0% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, Olympia grows about 3.2% a year. That is the number to type in. Prices were flat over the last year.
• Months of carrying cost — 2. A typical home takes 39 days to sell. Budget that long when you exit or refinance. It is 5% slower than a year ago.
• Odds you cut your price to sell — 1 in 5. About 21% of homes on the Olympia market right now have already cut their asking price. Assume you are one of them when you sell. Do not underwrite an exit at your asking price.
• Comp on this, not median price — $304/sqft. The average listing runs +14% above the median. Luxury homes skew it. Comp your own size class per sqft.
• Competition when you exit — +26%. That is how much the number of homes for sale grew in a year. Your resale will face a bigger crowd than today's comps did.
• Price-to-income ratio — 6.0×. A typical home costs 6.0 times the median income. Most locals cannot buy. That keeps rental demand deep. It also caps the rent they can pay. Incomes are rising faster than home prices. Affordability is improving.
• Tenant rent ceiling — $2,482/mo. 30% of the median household income of $99,284. Rents above this line shrink your tenant pool fast.

Is Olympia a buyer's or seller's market in 2026?

Yes, if you negotiate. Buyers have the upper hand in Olympia right now. 57 out of every 100 homes for sale have a buyer, 21% of sellers have cut their price, and a typical home takes 39 days to sell.

Are Olympia home prices going up or down?

Asking prices are 5.6% below their Oct 2023 peak. You are not buying at the top. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower.

What price growth should I assume for Olympia?

Assume +3.2% a year. Olympia grew 7.0% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, Olympia grows about 3.2% a year. That is the number to type in. Prices were flat over the last year.

How fast are homes selling in Olympia?

A typical Olympia home takes 39 days to find a buyer. Half of them take even longer. That is 5% slower than a year ago. Those sellers are paying to own a house they want to sell. Search for homes listed 60+ days ago.

Is Olympia a renters' market or an owners' market?

In Olympia, 33 out of every 100 households rent. Most own their home. The renter share is shrinking. Five years ago it was 36 in 100. Just 5.0% of homes sit empty. A well-priced rental fills fast here.

What rent can Olympia tenants afford?

A tenant on the median income can pay about $2,482 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast. The median Olympia household earns $99,284 a year.

Which Olympia ZIP code has the most negotiating room?

98512. Only 44 out of 100 homes there have a buyer. 35% of sellers there have cut their price, and a typical home takes 43 days to sell.