Is Federal Way, WA 98023 a buyer’s or seller’s market?

The Federal Way housing market right now

In the three months ending August 31, 2026, 21% of homes in Federal Way, WA 98023 sold above their list price, the typical home went under contract in 18 days and there were 3.2 months of supply. Under four months of supply means sellers have the edge: expect competition for well-priced homes. That’s based on 137 home sales.

Compared with the same period a year earlier, the share selling over asking fell from 27%, homes sold more slowly (11 days then) and the median sale price rose 6% to $634,176. 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 52% of the county’s ZIP codes, and sell more often over asking than in 57%. On our competition score, Federal Way ranks #121 of 298 WA ZIP codes with enough sales (score 61 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.