Is Federal Way, WA 98003 a buyer’s or seller’s market?

The Federal Way housing market right now

In the three months ending August 31, 2026, 20% of homes in Federal Way, WA 98003 sold above their list price, the typical home went under contract in 32 days and there were 4.7 months of supply. Four to six months of supply is a balanced market, where pricing and condition decide how much room there is to negotiate. That’s based on 91 home sales.

Compared with the same period a year earlier, the share selling over asking fell from 27%, homes sold more slowly (20 days then) and the median sale price held steady to $584,697. Overall, Federal Way is less competitive than a year ago, which gives buyers more room.

Within King County, homes here sell more slowly than in 90% of the county’s ZIP codes, and sell more often over asking than in 54%. On our competition score, Federal Way ranks #200 of 298 WA ZIP codes with enough sales (score 50 out of 100).

Nearby, buyers who want less competition could look at Skykomish 98288 (0% sold over asking) or Baring 98224 (0% sold over asking), while Seattle 98155 (43% sold over asking) and Seattle 98136 (41% sold over asking) are even more competitive.