The Gap Between Supply and Demand Just Cut in Half. Here’s What That Means.

For the past several weeks, we’ve been watching the gap between new listings and pending sales widen. It went from 40 homes back in mid-June all the way out to 167 homes last week. This week, that gap dropped to 85.

That’s not a small move. It’s worth understanding what drove it and whether it signals anything bigger.

This Week’s Numbers (Week Ending July 19, 2026)

• 385 New Listings (down 19% from 478)
• 300 Pending Sales (down 4% from 311)
• 232 Homes Sold (essentially flat from 235)
• 370 Price Reductions (down slightly from 388)
• 17 Price Increases (up from 14, highest we’ve tracked)
• 28 Back on Market (down 38% from 45)
• 47 Expired Listings (up from 39)
• 117 Canceled Listings (essentially flat)
• 7 Contingent

Why the Gap Narrowed

The math is straightforward this week. New listings dropped 19%, from 478 down to 385. Pending sales moved much less, falling just 4% from 311 to 300. When supply eases and demand holds, the gap between them shrinks.

It’s worth being clear about what drove this. Buyers didn’t suddenly surge. New listings just pulled back from last week’s post-holiday high. So the gap compression this week is more about supply easing than demand strengthening. Still a positive directional shift, but context matters.

Price Reductions Are Still Running High

Here’s the part that keeps the picture complicated. Price reductions came in at 370 this week, down just 5% from last week’s high of 388. That’s barely a move. The existing inventory pool is still under real pressure.

What that tells us is straightforward. There are a lot of homes that have been on the market for weeks that aren’t selling at their current price. Sellers are cutting to compete, and buyers are still being selective about what they will and won’t pay.

That dynamic doesn’t change overnight because new listings eased up for one week.

A Positive Signal in Price Increases

One number worth calling out is price increases, which hit 17 this week. That’s the highest we’ve tracked since we started following this market in mid-June. It’s still a small number compared to 370 reductions, but it tells you something useful.

Some homes are getting enough buyer interest to push price upward. Those tend to be the well-priced, well-presented listings in the right locations. They’re not the norm right now, but they exist. And they’re a reminder that the market isn’t uniformly slow for sellers across the board.

What the 6-Week Trend Actually Shows

Looking at the full picture since mid-June, the gap trend looks like this:

Week of 6/16: +40 homes Week of 6/21: +84 homes Week of 6/28: +143 homes Week of 7/5: -116 homes (holiday week, inventory distorted) Week of 7/12: +167 homes Week of 7/19: +85 homes

Excluding the holiday week, the gap widened steadily for three weeks before pulling back this week. One week of narrowing doesn’t reverse the trend. But it’s the first meaningful move in that direction since we started tracking.

What This Means If You’re Selling

Fewer new listings hitting the market this week means a little less direct competition than the week before. That’s a modest positive. But price reductions staying near their high tells you the real challenge hasn’t changed: there’s a large pool of existing inventory competing for buyers, and those sellers are cutting price to get attention.

The homes moving right now are priced correctly from day one. If your home is sitting, the answer is almost always the same. Look at the price first.

What This Means If You’re Buying

You still have solid leverage as a buyer right now. The gap narrowed this week, but 85 homes is still a meaningful buffer of supply over demand. Price reductions are still running near their highest point of the summer, which means motivated sellers are out there.

If you’ve been waiting for the right moment to make an offer on something that’s been sitting, this is still that kind of market. Use it.

The Bottom Line

The gap between new listings and pending sales narrowed meaningfully this week, which is the first positive shift in that direction since mid-June. But price reductions staying elevated at 370 tells us the market isn’t flipping overnight.

Watch the next two or three weeks. If new listings keep pulling back and pending sales hold or improve, the trend toward tighter conditions will be real. If new listings surge again and pending keeps softening, last week’s high gap of 167 won’t be the peak.

As always, reach out anytime if you want to talk through what this means for your specific situation.

Data sourced from Snohomish & North King County MLS activity, week ending July 19, 2026.