Seattle was labeled a neutral housing market in September, ending a streak of 20 months as a seller’s market, according to the latest Zillow market heat index.

The housing market heat index uses engagement on Zillow’s active home listings, the share of listings with a price cut and the share of for-sale listings going pending in 21 days to calculate the heat of the housing market both nationally and in individual communities. 

The index assigns a score to every market, with a tally above 70 considered a strong seller’s market; 55-69 is a seller’s market; 44-55 is a neutral market; 28-44 is a buyer’s market; and 27 or less is rated a strong buyer’s market.

The Seattle September score was 54.5, down from 56.4 the previous month. The score has decreased every month since February, when the region was considered a strong seller’s market, with a score of 99.7. Seattle was considered one of the strongest seller’s markets in the country, peaking in January 2022, then moving sharply into a buyer’s market in the second half of 2022. In January 2023, it shifted again and has been a seller’s or strong seller’s market until last month, according to the index.

Nationally, the housing market has dipped into neutral territory for the last three months. Before that, it was considered a seller’s or strong seller’s market every month from January 2020 through June 2024, except for brief dips into neutral status in October and November 2022 and November 2023.

The five strongest seller’s markets in September were: Rochester, N.Y.; Syracuse, N.Y.; San Jose, California; Buffalo, N.Y.; and Hartford, Connecticut. 

The five strongest buyer’s markets were: Cape Coral, Florida; McAllen, Texas; New Orleans; Miami; and Deltona, Florida.