Seattle's housing market cools amid tax-exodus debate

The useful part

Washington's housing market is loosening with more homes coming onto the market and fewer buyers closing deals than a year ago. Overall, the market is cooling across price ranges, Washington's population continues to grow and there is little evidence of a mass exodus. For now, taxes appear to be one factor in a broader shift in Seattle real estate.

How it works

• Much of the concern surrounds a new 9.9% state income tax on households with annual income above $1 million.
• Bob Ferguson signed the legislation in March, but the tax does not take effect until 2028, with the first returns due in 2029.
• Hedge fund founder Brian Heywood and other opponents gathered more than 500,000 signatures for Initiative 645, a repeal measure that has qualified for the Nov.
• Real estate brokers told The Center Square that some of their wealthy clients are establishing residency in lower-tax states rather than waiting to see what voters decide.
• More homes, higher mortgage rates At the end of July, Northwest Multiple Listing Se...

What to take from it

Meanwhile, the Seattle-area housing market is giving buyers more leverage.

Details worth keeping

The shift is visible at the high end of the Seattle-area market, where listings of multimillion-dollar homes have surged — fueling speculation that Washington's changing tax landscape is prompting wealthy residents to sell and establish residency elsewhere.