Capitol Hill, Seattle, WA Housing Market: Prices, Trends and Competition in 2026

Updated on: October 29, 2026

Home prices in the Capitol Hill area slipped over the past year: the NWMLS median sale price for Map Area 390 (Central Seattle), which contains Capitol Hill, was $910,000 in September 2026, down 3.09% from $939,000 a year earlier.

Key takeaway

The blended median for the Capitol Hill, Seattle housing market hides two markets that move differently. Houses run on tighter supply, while condos give buyers more listings and more room to negotiate. Buyers should price by property type and by building. Sellers should price to recent comparable sales, because overpriced listings end up taking cuts.

Who this guide is for

Buyers and sellers weighing a Capitol Hill condo, townhome or house who want current, dated price and competition figures.

Capitol Hill housing market at a glance

Sept 2026 medians: houses $1,167,500, condos $501,500.
Year over year: area median down 3.09%, Seattle flat.
Months of supply, Sept 2026: houses 5.72, condos 7.52.
Freddie Mac 30-year fixed average: 7.24% on October 29, 2026.
2026 assessments use a January 1 valuation date.

Capitol Hill housing market snapshot

Split by property type, the median home price in Capitol Hill and its surrounding MLS area looks like this in NWMLS figures for September 2026, with the year-earlier number in parentheses:

Single-family median sale price: $1,167,500, up 6.74% ($1,093,750)
Condo median sale price: $501,500, up 19.40% ($420,000)
Active listings: 496 overall (450), 263 residential (215), 233 condo (235)
Months of supply: 6.44 overall, 5.72 residential, 7.52 condo
Closed sales: 77 overall (103), 46 residential (64), 31 condo (39)

Last updated: October 2026, using September 2026 data. Source: Northwest Multiple Listing Service (NWMLS) King County breakout report.

Map Area 390 covers Capitol Hill plus adjoining Central Seattle neighborhoods. A listing marketed as Capitol Hill at the First Hill or Central District edge may sit inside or outside these numbers. Judge each listing by its actual address and surroundings rather than the neighborhood name in the ad. Active listings rose about 10% from a year earlier, with the whole gain on the residential side, while condo listings held nearly flat.

How competitive is the Capitol Hill market right now?

Houses lean further toward sellers than condos do: house supply runs almost two months shorter than condo supply. Closings fell by about a quarter while listings grew, so fewer buyers are closing on a larger pool of homes. That gives condo shoppers in particular time to compare buildings and negotiate.

Both property types are looser than King County as a whole, where supply stood at 4.70 months in September 2026 and the median sale price held at $850,000, unchanged from a year earlier. A buyer is therefore less likely to face a bidding war than a year ago, especially for condos.

The NWMLS report publishes no separate First Hill figures. A buyer weighing First Hill against Capitol Hill should compare recent sales of the same property type in each building or on each block, not a neighborhood-wide median.

Condition still separates fast sales from slow ones. Move-in-ready homes draw offers faster than homes needing roof, foundation, plumbing or electrical work, because buyers weigh the cost of construction and labor.

Condos vs. houses and townhomes: two different markets

Condos made up about four in ten closings in September 2026, and the house median ran more than double the condo median. Measure any listing only against recent sales of its own type, because a house sale says little about what a condo two blocks away is worth.

Condos carry a cost beyond the price: monthly homeowner association dues add to the overall housing expense and vary by building. Across the City of Seattle, NWMLS put the September 2026 condo median at $530,000, up 1.21% from $523,687. The Capitol Hill area’s condo median rose much faster over the year.

NWMLS does not publish a townhome-only median or a median list price for the area at this level, so compare a townhome with recent townhome sales nearby.

Within each type, several features move price:

Views: Skyline or Olympic Mountains views carry a premium.
Parking: Older buildings often lack dedicated parking, so off-street or underground parking adds value. Check whether a space conveys with the unit or is only rented.
Location: Walking distance to the light-rail station and to Volunteer Park affects price.
Street setting: A unit’s orientation, how much light it gets and how exposed it is to nightlife, deliveries or arterial traffic can change value within the same building or block.
Outdoor space: A usable yard, balcony or roof deck adds value.
Area: Larger historic houses cluster near Volunteer Park and Millionaire’s Row in the north and east, while most condos sit along the Broadway and Pike/Pine corridors.

Entry-level vs. high-end home prices: how each tier is trending

Across the Seattle metro, the S&P CoreLogic Case-Shiller, WA-Seattle Home Price Index stood at 387.06 in August 2026 (January 2000 = 100). That means prices sit close to 3.9 times their 2000 level.

On Capitol Hill, condos fill most of the entry tier and detached houses most of the top tier, so the two medians in the snapshot work as a tier comparison. Over the year to September 2026, the condo median rose almost three times as fast as the house median. With only 31 condo closings in the month, a single month’s median can swing widely, so treat the gap as a direction rather than a fixed rate.

For first-time buyers, the condo tier offers the most supply, though prices there have climbed. For move-up buyers, the gap is the hard part: selling a condo at the area median and buying a house at its median means bridging about $666,000.

Are Capitol Hill home prices dropping?

Prices in the Capitol Hill area are mixed. The combined median fell over the year, yet the house and condo medians each rose, so the dip reflects the mix of homes that sold rather than broad price cuts.

Citywide, NWMLS put Seattle’s September 2026 median for homes and condos at $850,000, the same as a year earlier. Closed sales fell almost 13% and the number of homes for sale jumped 20%.

Financing costs more. Freddie Mac’s 30-year fixed average was 7.24% on October 29, 2026, against 6.17% a year earlier, so the same loan amount now carries a higher monthly payment than it did last fall.

2026 King County assessments: what they signal for Capitol Hill

King County’s 2026 revaluation values property as of January 1, 2026, and those values are used to calculate the property taxes payable in 2027. The Assessor appraises Capitol Hill houses as Area 25 within its Central District report. Condos fall under a separate Specialty 700 Capitol Hill report covering neighborhoods 35, 40, 65, 70 and 85.

Because the valuation date sits months behind today’s sales, an assessment trails the market. Set your parcel’s assessed change beside the sale-price trends in the snapshot. A condo assessment may lag the year’s sharp rise in condo prices, while a house assessment may sit closer to current sales.

Your tax bill depends on levy rates as well as your assessed value. Your Assessor notice lists your parcel value and how to appeal.

What this market means for buyers and sellers

Buyers of houses should expect little room below list on a well-priced home and should price against recent sales on the same blocks.

Condo buyers should start with recent sales in the same building, widening to similar nearby buildings when there are too few. Before offering, ask for the association’s budget, reserve study, insurance coverage, rental rules and any pending special assessment. Also confirm with your lender that the building qualifies for your loan.

In older houses, budget for a sewer scope and a full inspection of the wiring, plumbing and foundation. A low list price can signal needed repairs, weak HOA finances or an upcoming assessment. Get pre-approved by a local lender before touring, since a strong financing letter helps an offer stand out against other motivated purchasers.

Sellers should price to recent comparable sales, because listings priced above them tend to sit and then take a reduction, which costs time and negotiating power. An online estimate can’t see your block, parking, outdoor space, renovation quality or competing listings in your building.

Condo sellers should gather association documents early so buyers can review them quickly. House sellers should consider a pre-listing inspection and pull sewer and permit records before going live.

Real estate investors will find duplexes and triplexes occasionally listed, offering rental income potential.

Frequently asked questions

How much does it cost to buy a house in Capitol Hill?

At the single-family median, a $233,500 down payment leaves a loan of $934,000. Closing costs come on top of the down payment.

How much income do I need to afford a home in Capitol Hill?

A $500,000 home needs an estimated gross household income of roughly $128,000 a year. That estimate assumes:

20% down
a $400,000 loan at about 6.3% for 30 years (about $2,476 a month in principal and interest)
property tax near 1.0% of value (about $417 a month)
insurance near $100 a month
a lender cap of 28% of income on housing

At the higher current Freddie Mac average noted above, the payment and the income needed both rise, and condo HOA dues raise the figure further.

Is Capitol Hill more expensive than the rest of Seattle?

For all homes combined, the Capitol Hill area’s September 2026 median ran about $60,000 above the citywide median. For condos, the area median ran about $28,500 below Seattle’s condo median.

Will I get the condo association’s reserve study before I buy?

Washington law (RCW 64.90.545) requires an association to obtain and annually update a reserve study, with a full update by a reserve-study professional at least every three years, subject to narrow exemptions. The rule first applied only to communities formed on or after July 1, 2018. Industry summaries of ESSB 5129 (2025) report that it extends to older communities from January 1, 2026, and that their resale certificates must disclose reserve-study status from that date.

How could Seattle’s upcoming rezoning affect Capitol Hill home values?

Seattle’s City Council adopted the One Seattle Comprehensive Plan on December 16, 2025, naming Capitol Hill/First Hill one of seven Regional Centers. Rezoning of the core around Broadway and Pike/Pine is expected in a later 2026 phase, after the new Neighborhood Centers and transit corridors. A separate Capitol Hill/First Hill Regional Center plan has no adoption date set, and the council moved an area west of 18th Avenue out of the center’s boundary for consideration in the Central District instead. Zoning changes tend to affect the land value of houses on rezoned lots more than this month’s condo prices. The rezone is therefore worth weighing on a house purchase, but it is not usually a reason to put off buying a home that fits your needs and timeline.

Ready to start your Capitol Hill Seattle home buying process?

Kim can prepare a custom Capitol Hill comparable-sales report or a valuation of your condo, townhome or house. Is it time for you to book an appointment with Kim? Call Kim directly at 206-850-3102 or send her an email at kim@teamdivarealestate.com to chat!

Kim Colaprete

December 20, 2025
Capitol Hill Seattle

Sources

Ready to Start Your Capitol Hill Seattle Home Buying Process?

Everyone’s home-selling and buying path is different. Is it time for you to book an appointment with Kim? Call Kim directly at 206-850-3102 or send her an email at kim@teamdivarealestate.com to chat!