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Market Intelligence · WA / Federal Way

Federal Way, WA 98023 Housing Market

A typical home in Federal Way's 98023 ZIP costs $598,598, down 1.2% over the past year. The median list price is $666,200, with homes spending a median of 48 days on market as of September 2026.

Updated September 2026Median value$599K

The median home value in Federal Way, WA 98023 is $599K as of September 2026, down 1.2% 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 98023 range

$551K to $646K

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

-1.2% over 12 months

Typical home value in 98023 over the last 12 months: $606K in Sep 2025 to $599K in Sep 2026 (-1.2%).

Sep 2025$606K

Sep 2026$599K

The numbers

What is the 98023 housing market like?

Typical home value

$599K

Down1.2%YoY

Median list price

$666K

Up0.5%MoM

Days on market

48

Up9.1%MoM

Homes for sale

139

Up4.5%MoM

Price cuts

29.1%

Up12.9%MoM

New listings

44

Down21.4%MoM

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

The outlook

98023 housing market forecast 2027

-0.1%

Zillow forecast, 12 months to September 2027

Zillow forecasts typical home values in 98023 to stay roughly flat by September 2027 (down 0.1%).

Over the 12 months through September 2026, typical home values in 98023 fell 1.2%, per the Zillow Home Value Index.

Will home prices drop in 98023?

Zillow's forecast does not point to a meaningful drop: it expects typical home values in 98023 to stay roughly flat by September 2027 (down 0.1%), after a 1.2% decline 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 98023 home prices compare?

  • 98023$598,598
  • 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

As of September 2026, there were 139 homes for sale in 98023, with 44 new listings coming on the market that month. The median list price was $666,200, and the median time on market was 48 days, so homes are not selling overnight. Nearly a third of active listings, 29.1%, had taken a price cut. That lines up with the value trend: the typical home value in August 2026 was $602,371, down 1.2% over the past year. For a seller, this is a softening market where pricing right from the start matters more than testing high.

Monthly payment

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20% · $119,720

Common questions

What people ask us.

What is the typical home value in Federal Way 98023?

A typical home in this ZIP is valued at $598,598 as of September 2026, down 1.2% over the past year.

How long do homes take to sell in 98023?

The median time on market is 48 days as of September 2026.

What share of homes have had price cuts?

As of September 2026, 29.1% of listings in 98023 have seen a price reduction.

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