At month's end the market had 18,580 active listings, the highest level since September 2015 (when buyers had about 1,144 more listings to choose from) and an 11 percent jump from July. The regional market held about two months of supply -- still lower than the "balanced market" range analysts hope for of four to six months -- replenished by the addition of even more new listings during the month and a slower pace of sales.
Within the four-county Puget Sound region, pending sales were down more than 20 percent on average; the range extended from Pierce County's 12 percent drop to King County's more than 23 percent drop.
King County even tied for largest jump in inventory, with a 74.3 percent increase from a year ago.
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"The Puget Sound residential housing market remains positive, though the market has transitioned from a frenzied state to one of strong sales activity," J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, said in the NWMLS report.
"We are seeing stability in the affordable and mid-price ranges in all market areas," he continued, citing "one of the best job growth markets in the nation" and favorable interest rates as contributing factors.
So what should buyers do now?
According to George Moorhead, the designated broker at Bentley Properties, many buyers are still sitting on the sidelines despite clear indications that the market is improving.
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"This is the best time in three years to be aggressive in the marketplace," Moorhead said in the NWMLS report. "Buyers are definitely taking more time to make a purchase [thanks to expanding inventories] ... this creates a declining curve in pending transactions compared to last year."
That cautiousness was echoed by other brokers, including Scott, who found that buyers are both careful with their offers and also a bit more savvy.
"Homes that are priced and presented right are still garnering multiple offers, but unlike the past few years, buyers aren't having to waive protections with their offers," Scott said.
Certain pockets, of course, remain trickier than others. Despite all the good news in supply for the Puget Sound area, King County's supply is still sparse, with just 1.9 months of supply.
That makes it still a seller-oriented market, with prices continuing to rise at a faster clip than either the rate of inflation or historical 10-year average sales price increase of 3 to 3.5 percent annually.
So what should sellers do now?
According to Dick Beeson, understand that the market is responding as it should and it's not a bug.
"The real estate sky isn't falling," Beeson said. "Huge increase in inventory the past few months speaks volumes about the anxiety levels sellers have as they try to get all they can before the market crashes, which it won't. The Northwest still has the best economy in America."
That being said, several realtors echoed the idea that appropriate pricing is now important.
"Sellers should be careful to avoid overpricing as savvy buyers are wary of properties pushing the upper end of the market. Properly priced properties will still see heavy activity in this market. Sellers of homes that linger on the market are reducing their prices to spur activity," Northwest MLS director John Deely said.
But again: that looks different across the board. To illustrate that, we've pulled out three homes across King County all at the county's median sales price for August. What $700,000 looks like in Kent is a lot different from what it looks like in Seattle.
Click through the slideshow above to see how the three homes compare. You can find links to the listings above.
SeattlePI reporter Zosha Millman can be reached at zoshamillman@seattlepi.com. Follow Zosha on Twitter at @zosham. Find more from Zosha here on her author page.
