I see a lot of new inventory coming online, pending sales slowing, days on market increasing, price reductions, new construction permits being down, etc.
market update from some local experts is below i've seen a few other blogs with similar lines of though and data. seems like there is a little bit of cooling but i don't think we will see any drastic drops in prices in the coming months/year lots of big companies are still moving here and bribing their high paid employees with them.
All depends on the price point. Lower end, hot hot hot. $1-1.5M+, dropped like a rock last fall and still slow. Used to be, on Mercer Island (for example), anything with a decent lot and some sort of house on it would be at least $1M. Now, prices have slipped to ~$950k, and they'll sit if overpriced/too much work...and not a good enough lot to tear down/build.
Kitsap (and Pierce) have been heating, up though. I live in Poulsbo. Prices are up 10% YoY, and expected to keep moving in that direction as more and more techies move to Seattle and the Eastside.