Market Intelligence · WA / Federal Way

Federal Way, WA 98003 Housing Market

Typical home value in Federal Way's 98003 ZIP is $551,791, up 0.5% over the past year. The median list price stands at $497,500, with homes spending a median of 44 days on the market as of September 2026.

Updated September 2026Median value$552K

The median home value in Federal Way, WA 98003 is $552K as of September 2026, up 0.5% year over year, according to Zillow ZHVI. For a read on your own home, start with a free consultation: a licensed local pro will walk you through your numbers and your options, with no obligation.

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Typical 98003 range

$508K to $596K

This is an automated estimate, not an appraisal. Actual value is determined by current market conditions and professional evaluation. It is provided for informational purposes only and is not an offer to buy or a promise of value.

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12-month value trend

+0.5% over 12 months

Sep 2025$549K

Low $549KHigh $560K

Sep 2026$552K

The numbers

What is the 98003 housing market like?

As of September 2026

Typical home value

$552K

0.5%YoY

Median list price

$498K

3.4%MoM

Days on market

12.8%MoM

Homes for sale

122

1.7%MoM

Price cuts

30.0%

45.7%MoM

New listings

40.6%MoM

Sources · Zillow ZHVI (September 2026) / Realtor.com (September 2026) / FRED (October 2026)

The outlook

98003 housing market forecast 2027

-0.2%

Zillow forecast, 12 months to September 2027

Zillow forecasts typical home values in 98003 to stay roughly flat by September 2027 (down 0.2%).

Over the 12 months through September 2026, typical home values in 98003 rose 0.5%, per the Zillow Home Value Index.

Will home prices drop in 98003?

Zillow's forecast does not point to a meaningful drop: it expects typical home values in 98003 to stay roughly flat by September 2027 (down 0.2%), after a 0.5% rise over the past 12 months. Forecasts are not guarantees: mortgage rates, inventory, and the wider economy can move values either way.

Forecast: Zillow Home Value Forecast, published October 2026. A forecast, not a guarantee.

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The comparison

How do 98003 home prices compare?

98003$551,791
Federal Way$575,195
Washington$496,668
United States$285,347

Median Zillow home value (ZHVI), as of September 2026. Comparison levels are medians across every ZIP code with Zillow data (Federal Way: 2 ZIPs; Washington: 485 ZIPs; United States: 26,262 ZIPs).

Context

Federal Way's 98003 has 122 homes for sale, with 38 new listings added in September 2026. The median time to sell remains moderate at 44 days. However, 30.0% of listings have seen price cuts, suggesting some sellers are adjusting expectations. While the year-over-year appreciation of 0.5% shows modest stability, the volume of price reductions indicates a cooling market. Sellers should expect to negotiate and price competitively from the start.

Monthly payment

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Home price

Down payment20% · $110,358

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Common questions

What people ask us.

What is the typical home value in 98003?

The typical home value in Federal Way's 98003 ZIP is $551,791, up 0.5% over the past year.

How long do homes stay on the market in 98003?

The median days on market is 44 as of September 2026.

What share of homes have price cuts in 98003?

30.0% of listings have experienced a price cut as of September 2026.

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