Prices Peaked in 2025.
The Market Has Turned.

In 2025, Issaquah and the South Plateau were on fire. Homes sold in 11 days on average, routinely clearing 10–20% over asking. Today, the median sold price has dropped 11%, homes are sitting nearly three times as long, and the overbid premium has evaporated. The market has turned — and the full data makes that case definitively.

Issaquah, Issaquah Highlands, Squak Mountain, Talus, Klahanie, and the Sammamish Plateau communities represent one of the Eastside's most active family-market segments. Excellent schools, relatively accessible price points compared to waterfront communities, and proximity to major tech employers have historically made this market a high-demand, low-inventory environment. That dynamic has shifted in 2026.

The Numbers

The median price decline of 11% is the most significant data point of this entire report — and the one that separates Issaquah from the rest of the Eastside story. While East Bellevue's sold prices looked flat (the full picture revealed decline), Issaquah's sold data is already showing the correction directly. The market isn't just slowing. Prices are measurably lower than they were a year ago.

Also notable: average square footage sold dropped 6.7%. Buyers are trading down in size — stretching less, compromising more, or shifting to more modest product within the market. The larger, more expensive homes are sitting.

Four Things the Data Is Really Telling You

The Full Picture: Active, Pending, Cancelled & Expired

Sold data confirms the decline. The active/pending/cancelled/expired data explains why it's happening and where it goes from here. Every address cross-referenced and deduplicated.

Months of supply, properly calculated: 87 unique active properties ÷ 18.6 closings per month (93 ÷ 5 months) = 4.7 months of supply. The 4-month line is where buyer's markets begin and prices fall. Issaquah has crossed it — and unlike East Bellevue, the closed sales data is already confirming the decline rather than masking it.

The $68,000 price gap: Active listings are priced at $1,786,581 on average. Homes are closing at $1,718,433. That gap represents the sellers still pricing for 2025 who haven't yet adjusted. They're the ones in the cancelled and expired buckets — or about to be.

The Failed Listing Picture

Cross-referencing every address across all four buckets reveals 34 unique properties that failed to sell — cancelled or expired — since the start of 2026. Here's what happened to them:

Four properties have failed two or more times — and two of them are still listed active right now. Most telling is the pattern with new construction on Newport Way NW: multiple units listed repeatedly at declining prices, some cancelled and relisted, none clearing quickly. When new construction struggles to absorb, it signals that buyer demand at current price points is genuinely thin.

Why Is Issaquah Correcting Faster Than the Rest of the Eastside?

Three forces are colliding in this specific market in 2026.

1. New construction supply pressure

Issaquah Highlands, Talus, and several new Issaquah infill projects brought significant new inventory to market in 2025 and 2026. New construction competes directly with resale — and when buyers can get a 2026-built home with a warranty at a comparable price, older resale stock has to discount. The Newport Way NW development alone accounts for multiple active, cancelled, and relisted units in this data set.

2. The rate-sensitivity of this buyer pool

The Issaquah buyer is almost always financing-dependent. At $1.5M–$2M, most buyers are putting 20–25% down and financing the rest. At 6.3% rates, a $1.5M purchase at 20% down carries a monthly payment of approximately $7,500 — before taxes and insurance. That's a payment that requires a household income of $250,000+. That pool is smaller than it looks, and more cautious than it was in 2021–2023 when rates were 2.75%.

3. The 2025 overbid hangover

In 2025, homes in Issaquah were routinely selling 10–20% over asking in days. Sellers who watched their neighbors clear $2.1M for a home listed at $1.9M are now anchoring to those reference points. But the buyer who would have paid $2.1M in March 2025 is a different buyer than the one shopping today — more cautious, less pressured, and armed with 28 days of average DOM to negotiate. The 2025 reference price is a trap for 2026 sellers.

Where the Micro-Markets Stand

Talus — A Closer Look at the Market's Hardest Hit Segment

Talus deserves its own section because the data there is more sobering than anywhere else in this report. It's a community of larger homes — 3,000–4,800 square feet, built mostly in the early-to-mid 2000s, priced in the $1.7M–$2.1M range — and in 2025 it was one of the hottest sub-markets in Issaquah. In 2026, it's the one generating the most expired listings, the longest days on market, and the most consistent pattern of buyers simply walking away.

Here's what the closed sales data shows for Talus in 2026:

The two expired listings tell the most important story. 883 Summerhill Ridge Dr NW — listed at $1,999,900, expired after just 8 days. Not a slow death, an immediate rejection. The market looked at $2M for that product and said no. 880 Lingering Pine Lane NW sat 49 days at $2.1M, generated no acceptable offers, and withdrew. Both sellers priced for a market that no longer exists in Talus.

The homes that did sell in Talus in 2026 closed at 97–99% of list — meaning sellers who priced honestly found buyers. The issue isn't that Talus is broken. The issue is that the spread between where optimistic sellers want to price and where buyers will actually close has widened significantly. In 2025, that gap didn't matter because buyers were competing. In 2026, buyers are selecting — and anything on the wrong side of the gap simply sits.

If you own in Talus and are thinking about selling, the path forward is straightforward: look at what actually closed in the last 90 days, price 2–3% below that to generate competitive interest, and don't anchor to what your neighbor got in 2025. The buyers are there. They're just not paying 2025 prices.

What This Means If You're Selling

• 1
  Price below your 2025 reference point — not at it. The median sold price is 11% lower than a year ago. If you're anchoring to what your neighbor cleared in April 2025, you're pricing into a market that no longer exists. The buyers doing diligence in May 2026 know the 2026 comps. Price to those, not to the peak.
• 2
  New construction is your competition — and it's discounting. Multiple new builds in Issaquah are actively cutting prices. A buyer who can choose between your resale home and a new build with a warranty and modern floor plan needs a compelling reason to pick yours. That reason is price, condition, or a lot characteristic that new construction can't replicate.
• 3
  28 days of average DOM means buyers have time — and they're using it. In 2025, buyers had to move in hours. Today they're doing 4-point inspections, consulting with mortgage brokers multiple times, and making competitive but not desperate offers. Homes that need work are being passed over. Condition is no longer a negotiating point — it's a threshold question.
• 4
  Squak Mountain and accurately-priced Klahanie are your best proof of concept. The data shows homes still selling over asking in this market — but only when priced right for 2026. The sellers winning aren't the ones holding out for 2025 prices. They're the ones who looked at the current comps, priced accordingly, and let the market respond.

What This Means If You're Buying

This is the best buying window in three years

A market with 4.7 months of supply, 28-day average DOM, and sellers who have been sitting for 60–100+ days is a market where buyers have real leverage for the first time since 2022. The 34 failed listings represent 34 sellers who are either still out there trying — more motivated now than when they started — or who will come back to market when they finally accept 2026 pricing.

Target the failed-and-relisted properties first

The 11 properties that cancelled or expired and relisted are your highest-probability negotiating opportunities. They've already demonstrated the market won't pay their original price. They've been sitting. Their sellers know it. A well-structured offer — reasonable contingencies, quick close — on one of these properties can close at a meaningful discount to even the reduced list price.

Be cautious on new construction pricing

New construction in Issaquah is still being listed at 2025-era prices while the resale market has already corrected. Several new builds are absorbing, but many are sitting and cutting. Don't pay a new construction premium in a market where resale comps are declining — negotiate aggressively or wait for the builder to come to you.

The Bottom Line on Issaquah & South Plateau

This is the most clear-cut price correction story on the Eastside. Unlike East Bellevue — where the sold data looked flat and required layering in active/pending/cancelled data to reveal the decline — Issaquah's closed sales are already showing an 11% median price drop year-over-year. The 4.7 months of supply, 34 failed listings, and 155% increase in days on market all point in the same direction.

For sellers: The correction is not coming. It arrived. The sellers winning right now are the ones who priced for 2026, not 2025. The sellers in the cancelled and expired pile priced for 2025. There is no path back to those numbers in the current environment.

For buyers: The combination of actual price declines, motivated sellers, extended DOM, and a pool of failed listings creates a genuine opportunity. Issaquah remains a fundamentally strong market — excellent schools, great location, strong employer base. You're not buying into a distressed area. You're buying into a temporary correction in a long-term quality market. That's historically when the best purchases happen.