🏡 Olympia, Washington Real Estate Market Update | August 2026
The Olympia, Washington housing market is giving buyers something they haven’t had in a decade: this many homes to choose from.
Active inventory in Thurston County climbed to about 1,100 homes in July—the highest level in roughly 10 years. At the same time, pending sales dropped about 12% from last year, homes are taking longer to sell, and more than one-third of sellers reduced their asking price.
So, is this finally a good time to buy a home in Olympia, Washington? And what does this changing market mean if you’re thinking about selling?
In this August 2026 Olympia real estate market update, I break down the latest July housing data for Olympia, Lacey, Tumwater, and the surrounding Thurston County market, including:
🏠 About 1,100 active homes for sale 📊 Just over 3 months of inventory, up about 22% year over year 💰 $531,000 median sales price, essentially unchanged from last year 📉 More than 35% of sellers reduced their price 💵 About 58% of sellers helped with buyer closing costs ⏱️ Sellers waited about five weeks to accept an offer 🔥 Only 19% of pending homes received multiple offers 📝 Just 16% of buyers waived inspections
Chapters: 0:00 – Intro 0:32 – New Listings, Active Listings, Pending Sales & Closed Sales 0:50 – The Typical Home Sold This Month 1:05 – Inventory & Months of Supply 1:16 – Days on Market 1:24 – Financing Used by Buyers 1:34 – Home Prices & List-to-Sale Price Ratio 2:02 – Seller Concessions (Closing Cost Assistance) 2:07 – Price Reductions 2:30 – It's my Birthday! 2:45 – How Hot is the Market? 3:11 – Advice for Buyers 3:5 – Advice for Sellers 4:33 – Wrap-Up
BUYING A HOME IN OLYMPIA, WASHINGTON?
If you’ve been waiting for more choices and a little more negotiating power, this market deserves your attention.
Higher inventory means buyers may have more opportunities to negotiate on price, closing costs, repairs, rate buydowns, and other terms than they did during the ultra-competitive market of a few years ago.
That may be especially important for VA buyers and military families relocating to JBLM. VA financing accounted for about one out of every four Thurston County home purchases this month.
If you're moving to Olympia, Washington, relocating to the South Puget Sound, PCSing to JBLM, or simply wondering whether now is the right time to buy, I’d be happy to talk through your options. We can grab coffee locally or meet over Zoom before you ever set foot in a house.
SELLING A HOME IN OLYMPIA?
Three months of inventory may technically favor sellers, but this is a very different market from the frenzy of several years ago.
Buyers have choices—and they’re using them.
That makes pricing, condition, presentation, professional photography, and smart marketing especially important. With more than a third of sellers making price reductions, getting the strategy right from the beginning can make a big difference.
📍 Areas I serve: Olympia, Lacey, Tumwater, Thurston County, JBLM and the greater South Puget Sound region.
👋 I’m REALTOR® Scott Tompkins, Your 360 Agent, and I live right here in Olympia. My goal is to help buyers and sellers understand what’s actually happening in our local market so they can make smart, informed real estate decisions.
If you're thinking about buying a home, selling a home, or moving to Olympia, Washington, let’s talk!
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This update covers closed sales from July 2026 and includes new and existing single-family homes (excluding condos) throughout Thurston County, Washington, including Olympia, Lacey, Tumwater, Yelm, Rainier, Tenino, and Bucoda.
Scott Tompkins, REALTOR® – Your 360 Agent Managing Broker | ABR | PSA | MRP | ePRO | Army Veteran | West Point Class of 1993 Realty ONE Group Bold – Equal Housing Opportunity 5215 Corporate Center Ct Ste A Lacey, WA 98503
