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FEDERAL WAY, WA 98003

Real Estate Market Report
Seller's Market
February 2026  ·  Source: Realtor.com

Neighborhoods in ZIP 98003

Buenna · Enchanted Village · Jovita (West Hill) · Kitts Corner · Kloshe Illahee · Lake Dolloff · Laurelwood · Marine Hills (Marine View) · Mirror Lake · Redondo · Redondo (Redondo Hills) · Steel Lake · West Campus · Woodmont (Woodmount) · Woodmont East (Woodmont E) · Woodmont West (Woodmont W)

Market Analysis

Data as of February 2026. Source: Realtor.com.

The FEDERAL WAY, WA real estate market (98003) currently shows 90 active listings, with 44 pending sales. Homes are averaging 35 days on the market before going under contract.

Inventory has tightened compared to last year, with 1 fewer active listings — creating more competition among buyers.

Homes are selling faster, averaging 35 days on market compared to 47 days last year.

The median listing price has risen 0.4% year-over-year, from $536,750 to $538,750.

Whether you are buying or selling in FEDERAL WAY, WA, SELL123.com can help you save significantly on commission — typically 2% compared to traditional 5% broker fees. Call (240) SELL-123 for a free consultation.

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Market Context

Market Context

Population: 51,329  ·  Density: 1,723.2/mi²  ·  Median household income: $67,547

Typical home value: $395,628  ·  Homeownership: 47.4%

Market Overview

Active Listings
90
⇩ 1.1% vs 91 last year
Pending
44
49% pending ratio
Median Price
$538,750
⇧ 0.4% vs $536,750 last year
Average Price
$568,787
⇩ 3.7% vs $590,834 last year
Days on Market
35
⇩ 25.5% vs 47 days last year

Price Per Square Foot

Median $/sqft
$334
⇩ 1.5% vs $339/sqft last year
Median Home Size
1,480 sqft
Typical listing size
12-Month $/sqft Trend

Market Trends

Inventory & Days on Market

Year over Year
  • Listings: 90 this year vs 91 last year
  • Days on market: 35 now vs 47 last year

Median & Average Pricing

Year over Year
  • Median: $538,750 (+0.4% YoY)
  • Average: $568,787 (-3.7% YoY)

12-Month Price Trend

Median & Average
  • Median and average listing prices over the past 12 months

12-Month Inventory Trend

Active & Pending
  • Active and pending listing counts over the past 12 months

Historical Trend Charts

Median Price
Average Price
Days on Market
Total Listings
Pending Listings
Active Listings
New Listings
Price Per Sqft
Price Reduced %

Nearby Real Estate Markets

Median Price Legend:
< $250K
$250K–$500K
$500K–$1M
$1M–$2M
> $2M
25 Nearby Zip Code Markets within 9.6 miles — 653 listings ($436,807,051 combined market value)
Zip City / State Distance Listings Market Value Median $ Average $
98003Federal Way, WA 980030.0 mi82$45,283,598$525,000$552,239
98001Auburn, WA 980012.4 mi50$36,909,350$756,450$738,187
98354Milton, WA 983543.8 mi20$15,314,860$754,975$765,743
98002Auburn, WA 980024.6 mi53$25,300,716$467,475$477,372
98198Seattle, WA 981986.1 mi59$30,889,214$492,000$523,546
98030Kent, WA 980307.0 mi58$35,416,424$660,000$610,628
98372Puyallup, WA 983727.2 mi39$26,602,173$675,000$682,107
98371Puyallup, WA 983717.4 mi80$56,422,240$689,450$705,278
98390Sumner, WA 983907.6 mi17$11,598,794$550,000$682,282
98418Tacoma, WA 984188.4 mi27$11,129,535$409,995$412,205
98092Auburn, WA 980928.7 mi98$85,885,632$754,975$876,384
98407Tacoma, WA 984079.3 mi55$46,674,760$689,950$848,632
98148Seattle, WA 981489.6 mi15$9,379,755$629,000$625,317

Frequently Asked Questions

How many homes are for sale in FEDERAL WAY, WA 98003?

As of February 2026, there are 90 active listings in FEDERAL WAY, WA (zip code 98003), compared to 91 the prior year.

What is the median home price in FEDERAL WAY, WA 98003?

The median listing price in FEDERAL WAY, WA 98003 is $538,750 as of February 2026, a 0.4% increase from $536,750 the prior year.

How long do homes stay on the market in FEDERAL WAY, WA?

Homes in FEDERAL WAY, WA 98003 spend an average of 35 days on the market before going under contract, compared to 47 days the prior year.

Is it a seller's or buyer's market in FEDERAL WAY, WA 98003?

Based on current inventory and days-on-market data as of February 2026, FEDERAL WAY, WA 98003 is currently a Seller's Market. Inventory has tightened compared to last year, with 1 fewer active listings — creating more competition among buyers. Homes are selling faster, averaging 35 days on market compared to 47 days last year.

How much can I save on real estate commission in FEDERAL WAY, WA?

With SELL123.com's maximum 3% commission, sellers in FEDERAL WAY, WA 98003 save an estimated $10,775 compared to a typical 5% commission on the median listing price of $538,750. Our fee structure: 1% listing + 2% selling broker — no additional buyer or seller fees. Call (240) SELL-123 or email info@SELL123.com for a free consultation.