T
he housing market in the Seattle area is experiencing a surge in activity, according to recent data from the Northwest Multiple Listing Service (NWMLS). The median sale price in King County has increased by 7.25 percent compared to last year, reaching $880,000 in July. Active listings have also seen a significant jump of 39.5 percent.

    Despite these increases, there is a glimmer of hope for potential buyers. The NWMLS predicts a likely cut in interest rates on the horizon, which could make homeownership more affordable. In fact, closed sales have increased by 7.25 percent county-wide, indicating a renewed interest in purchasing homes.

    Although any change in mortgage rates is expected to be small, buyers and sellers are eagerly anticipating a dip in interest rates. To help you stay ahead of the potential feeding frenzy, we have analyzed the larger market picture for this month's snapshot. Here's a look at the areas in King County where prices are rising and falling the fastest:

    List ordered by annual price growth.

    Falling prices:

    1. Southwest King County

    All the southwest suburbs experienced a price drop in July. Closed sales were down 6 percent, while active listings skyrocketed 61.5 percent—the most in King County. Des Moines/Redondo had the most affordable median price after it fell 6.25 percent to $562,499.

    Prices rising:

    4. Vashon

    Real estate in this community had a small price bump in July, but there are only so many homes on the island. Active listings were up just 8.7 percent, and closed sales increased 23 percent over last year.

    Median price: $772,500

    Year-over-year price growth: 3.7 percent

    Months of inventory: 1.6

    3. North King County

    With the light rail extension, inventory in the northern suburbs is tight, even as active listings increased 33.7 percent. The median price in Richmond Beach/Shoreline increased nearly 6 percent, and closed sales fell 23 percent. In Lake Forest Park, closed sales increased 22 percent, while the median price remained unchanged.

    Median price: $847,500

    Year-over-year price growth: 4.6 percent

    Months of inventory: 1.5

    2. Seattle

    While active listings in the city increased 40.8 percent, prices also increased—up 8 percent. But closed sales inched about 1 percent over last year. In Belltown/Downtown, active listings—all condos—were up 22.3 percent, and so was the price, which increased 22.7 percent to $650,000. That was the largest hike in the city. However, closed sales—also all condos—had the largest drop in the entire county—falling 28 percent.

    In North Seattle, the median price climbed back in the millions—$1,035,000—after a 20 percent bump in July. Active listings were up 45.6 percent, and closed sales posted a nearly 9 percent increase.

    Queen Anne/Magnolia reclaimed its spot as Seattle’s most expensive neighborhood, after the median price increased 16.9 percent to $1,245,000. Active listings soared nearly 60 percent, and sales were up 3 percent. SoDo/Beacon Hill posted the sole price decline in Seattle. Prices fell 5.1 percent to $650,000, as sales increased almost 30 percent. Active listings were also up about 30 percent.

    Median price: $875,000

    Year-over-year price growth: 8 percent

    Months of inventory: 2.6

    1. Eastside

    Eastside prices popped off in July. So did closed sales, which were up 29 percent over last year. Inventory, however, did not—even with an almost 24-percent increase in active listings. The median price East of Lake Sammamish gained 23 percent ($1,475,000), and closed sales jumped 26.4 percent. However, active listings were up just 8.3 percent. In Bellevue, west of 405, active listings increased just 7.5 percent while closed sales increased almost 50 percent. The median price fell 9 percent to $1,865,000, which remains one of the most expensive enclaves on the Eastside.

    Median price: $1,423,475

    Year-over-year price growth: 11.7 percent

    Months of inventory: 1.4

    The housing market in King County is showing signs of loosening up, according to the NWMLS. While prices continue to rise, buyers and sellers are preparing for a potential dip in interest rates. The areas in King County where prices are rising and falling the fastest provide valuable insights into the current market trends.