Gazing out over the serene waters of Puget Sound, where orcas gracefully glide through the waves, it’s easy to forget that the vibrant city of Seattle lies just a mere 15 minutes away.

This breathtaking 100-mile stretch of waterways, cherished by locals, is home to neighborhoods where real estate prices, once averaging around $1 million, are beginning to see a decrease, according to area realtors.

Tight-knit communities such as Magnolia and Ballard boast abundant green spaces and are conveniently located just a short distance from downtown Seattle.

Magnolia, situated 4.4 miles and a 15-minute drive from Seattle’s city center, is home to 18 parks, including Discovery Park, the largest in the city. The area offers numerous hiking and running trails, as well as opportunities for wildlife and bird watching.

Zillow reports that the average home price in Magnolia is currently $1,219,285, reflecting a 1.4 percent decrease from the previous year.

Meanwhile, Ballard, which originated as a quaint fishing village, has transformed into a culinary paradise. The neighborhood is renowned for its diverse array of restaurants and hosts a year-round farmers market.

It is around 6.5 miles away and takes half hour to drive to downtown. According to Zillow, the average home price in the area is $837,279, down 2 percent from last year.

Sain Rhodes, a real estate expert with Clever Offers, told the Daily Mail that the housing market for buyers in Seattle is looking positive as prices drop and homeowners are seeing an average decrease of $260 in mortgage costs. 

The Puget Sound offers residents serene waterfront views. Orcas are frequently spotted swimming in the sound 

Those living near the Puget Sound can enjoy water activities with picturesque views of Mount Rainier

Gig Harbor beach looks out on to the Puget Sound. It offers a perfect place for people to relax and take part in watersports

Alki Beach in Seattle offers beautiful views of the Puget Sound. The 100-mile stretch of waterways weaves between close-knit neighborhoods

‘Homes are now taking 17 to 42 days to sell, up from five to seven days, a significant increase,’ she told the Daily Mail.

‘This has not happened in over five years. It is indeed a market where buyers can negotiate again.’

According to Redfin, after two years of price appreciation in the area, the median home price across Seattle dropped 6.5 percent year-on-year to an average of $785,000 in December 2025.

There were 592 homes sold in 2025, which is up 1.7 percent from 2024. Houses were also on the market for a median of 42 days, which is up by three year-on-year.  

Rhodes pointed to Ballard as a neighborhood that’s evolved into a highly-coveted area. 

Ballard sits where Puget Sound and Lake Union connect and is bustling with 20 parks in the neighborhood. Rhodes said prospective buyers can find homes in the area near the waterfront for under $1 million. 

In 2035, the Ballard to downtown extension of the Link light rail will add 7.1 miles of light rail service from downtown to Ballard to make it even easier to commute.

Chris Reis, a broker with Pacific Northwest Residences, told the Daily Mail that around Puget Sound offers residents a perfect mix of natural amenities and charming communities. 

Realtors told the Daily Mail that although the housing market is competitive, Seattle is trending positively for homebuyers 

 Homes along the Puget Sound offer perfect living for those who love the outdoors but want to be close to a city

Neighborhoods outside of Seattle’s downtown metro area have become hidden gems loved by locals. Pictured: The Blue Angels, also known as the US Navy Flight Demonstration Squadron, fly above Elliott Bay in the Puget Sound ahead of the Boeing Seafair Air Show 2025 in July last year 

‘The waterfront provides stunning views of the Olympic Mountains, with orcas frequently spotted swimming in the Sound,’ Reis said. 

‘The Cascade Mountains are just an hour away, offering world class hiking as well as skiing with Mount Rainier dominating the horizon on clear days.’

Reis also recommended lesser-known neighborhoods outside of Seattle on the Puget Sound, including Renton, Kent and Everett. 

The greater Seattle area is becoming one of the fastest-growing places for new and relocating businesses, according to the Renton Chamber of Commerce. 

Renton is just 11 miles southeast of Seattle and sits on the shore of Lake Washington and the edge of the Cedar River, offering stunning waterfront views.

Renton’s neighbor, Kent, is 19 miles south of Seattle. The city is an hour from Mount Rainier National Park. 

Sitting north of Seattle is Everett, nicknamed the ‘Goldilocks City’ for its temperate weather and moderate size. 

‘Chill is the name of the game in Everett… it’s truly the perfect spot you’ve never heard of,’ the city’s tourism website states. 

Ballard is another neighborhood on the Puget Sound that has grown into a lively community 

Everett has also become a popular town on the Puget Sound that offers more affordable options in comparison to Seattle 

Kent is 19 miles south of Seattle and sits on the edge of the Cedar River near the Puget Sound 

However, Reis warned that even though these neighborhoods are off the beaten path, they’ve strayed from the small, affordable communities they used to be. 

Reis told the Daily Mail that it remains to be seen whether neighborhoods along the Puget Sound can continue to accommodate the housing demand without losing their identity, adding that many longtime residents have already been priced out. 

‘As the city continues to grow, the Puget Sound will likely remain expensive, but its combination of urban careers and unmatched access to mountains, water, and forests ensures it remains one of America’s most competitive places to live.’