Thurston County market update · August 2026

More homes. Fewer sales. More room for buyers to think.

Inventory rose sharply in August, but prices did not fall countywide. The useful change for buyers is time—and the opportunity to judge each property on its actual merits.

By Kyle Murphy, RealtorWorks Real Estate · Published September 5, 2026

View over Capitol Lake and downtown Olympia, Washington — Olympia and Capitol Lake. Photo by Kyle Murphy.

There were substantially more homes to choose from in August, but fewer buyers were putting them under contract. That gives buyers more leverage than we have seen in a while. It does not mean every seller is desperate, or that the right offer is automatically a low offer.

The useful change is time. Buyers are more likely to have room to compare the payment, condition, location and long-term cost before deciding what a home is worth to them.

Thurston County at a glance

1,155Active listingsUp 33.2% year over year

$535,000Median sale priceUp 2.9% year over year

375Pending salesDown 10.1% year over year

323Closed salesDown 5.3% year over year

3.58Months of inventoryResidential and condos combined

What the August numbers actually mean

Active inventory rose to 1,155 homes, while pending sales fell to 375 and closed sales fell to 323. Supply increased at the same time that buyer activity slowed. That is why buyers are seeing more choices and why some sellers are becoming more flexible.

But the median sale price still increased to $535,000. This is not a broad price collapse. It is a market where condition, location, presentation and initial asking price are separating the homes that sell from the homes that sit.

What I would watch at each price

Under $400,000

Choices remain limited, and many are condos, manufactured homes, smaller houses or properties that need work. A low price can be offset by HOA dues, leased land, insurance limitations or near-term repairs. Verify the full monthly cost and property type before treating it as affordable.

See newer Thurston County listings under $400,000

$400,000–$600,000

This band surrounds the county median and contains much of the practical first-time-buyer market. More inventory means it is worth comparing homes instead of excusing obvious defects. Well-priced, updated homes can still move quickly; homes with longer market time may offer room for repairs, credits or rate-buydown assistance.

See newer listings from $400,000 to $600,000

$600,000–$800,000

Buyers generally have more choice here, including newer construction, larger homes and stronger locations. Compare builder incentives with resale-home negotiation carefully. A headline incentive is only useful if the home, loan terms and total price make sense together.

See newer listings from $600,000 to $800,000

$800,000 and above

Days on market and seller motivation can vary widely. Acreage, waterfront, wells, septic systems and custom construction make simple price-per-square-foot comparisons unreliable. The opportunity is often in careful due diligence and a property-specific negotiation—not assuming every expensive home is overpriced.

See newer Thurston County listings at $800,000+

Where buyers may have leverage

A lower price is only one way to negotiate. Depending on the property and the seller’s priorities, I would also look at:

Seller-paid closing costs or interest-rate buydowns
Repairs, credits or specialist inspections
Closing date, possession and other timing terms
Included appliances or personal property
Whether a home’s time on market reflects price, condition—or something less obvious

What sellers should take from August

More competition means buyers can compare your home with several alternatives. Pricing high to “leave room” can backfire if the listing loses its initial attention and then needs reductions.

Before listing, decide which repairs are worth completing, which issues should be disclosed and which buyer requests you may be willing to accommodate. A clean, well-presented home at a defensible price can still stand out. The goal is not to make the house perfect. It is to remove the reasons a qualified buyer might hesitate.

Rates changed the math

Freddie Mac’s national average 30-year fixed rate was 6.71% on September 3, up from 6.66% one week earlier and 6.50% a year earlier. Your quote will depend on credit, loan type, points and other details. At these rates, seller-paid closing costs or a temporary rate buydown may help more than a small price reduction—but the comparison needs to be done with your lender, in actual dollars.

One local project worth knowing

South Puget Sound Habitat for Humanity broke ground in March on the first phase of the 3900 Boulevard Road SE project. The City says the full plan calls for 112 owner-occupied townhomes and cottages affordable to qualifying households, built in roughly four phases. It will not solve the county’s supply problem by itself, but it is a meaningful addition to Olympia’s ownership pipeline.

A practical plan for September

If you are buying

Have your lender update the payment at today’s rate, compare the total monthly cost—not just the price—and decide which inspection and closing terms matter before you find the house.

If you are selling

Review the active competition, make the important repairs and price from current evidence. The first week still matters, even when homes are taking longer to sell.

Sources and methodology

County statistics combine residential homes and condominiums and compare August 2026 with August 2025. Listing status and inventory can change at any time.

Market statistics describe the county and cannot predict an individual property. Mortgage rates are national survey averages, not a loan quote. Listing status, price and property information should be independently verified. Information deemed reliable but not guaranteed.

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