Listing and sales activity decreased widely across the Seattle area during September, according to the latest Market Snapshot from the Northwest Multiple Listing Service (NWMLS).

Active property listings fell 20% during the month. Meanwhile, home sales fell in 23 of the 26 counties in the NWMLS region. This allowed inventory to grow, reaching a 2.1-month supply in September, up from 1.7-months in August.

“The real estate market typically slows down in the fall and winter months,” Mason Virant, associate director at the Washington Center for Real Estate Research at the University of Washington, said in the report. “However, the high-interest rate environment has further decreased the purchasing power of prospective buyers leading to a continued decline in year-over-year transaction volume with overall median prices stagnating.”

Despite this, many hold onto optimism for the near future, including NWMLS President and CEO Tom Hurdelbrink. “I see this as a transition period, post pandemic, after a year of steep inflation and rising interest rates,” he said. “It suggests there may be a more balanced market coming in the near future.”

One indicator of market health in the coming months is rising sales prices. The median sales price rose in 15 counties during September, although the overall median list price was down 2.44% due to decreases in Seattle-area counties like King, Kitsap and Pierce.