Sequim sits on the Olympic Peninsula in a pocket of sunshine unlike anywhere else in Western Washington. While Seattle averages around 38 inches of rain per year, Sequim gets about 16 — tucked into the rain shadow of the Olympic Mountains, earning its nickname as the Banana Belt of the Pacific Northwest.
That microclimate, combined with Olympic Mountain views, the Dungeness Spit, lavender farms, and a welcoming community, has made Sequim one of the most sought-after retirement destinations in Washington State. Whether you’re planning to retire here, relocating from the west side of the state, or moving from out of state entirely, here’s what you need to know about buying a home in Sequim.
Who’s Buying in Sequim
Sequim’s population skews strongly toward retirees — the median age is over 55 — and the buyer pool reflects that. The most common profiles I work with for Sequim purchases:
- Pre-retirees and retirees relocating from Seattle, the Eastside, or California — often selling a higher-priced home and buying in Sequim with significant equity, sometimes purchasing outright or with a smaller loan. Sequim is one of Washington’s most popular retirement destinations — but it’s not the only one worth knowing about. See how it compares to Gig Harbor, Bellingham, Spokane, and more in our guide to the best places to retire in Washington State.
- Out-of-state buyers — drawn by Washington’s lack of state income tax on wages and retirement income, the dry climate, and proximity to the Pacific Northwest without Seattle-area prices
- Downsizers staying on the peninsula — moving from larger homes in Port Angeles or Port Townsend into something more manageable in Sequim’s established neighborhoods
- Second-home and future retirement home buyers — purchasing now while still working, planning to make the full move at retirement
If you’re selling a Seattle-area home to buy in Sequim, the equity conversation is important — especially if your current home has appreciated significantly. Talk to your CPA about timing and capital gains before you list, and reach out to me about how to structure the purchase on the Sequim side.
Sequim Home Prices
Sequim home prices reflect its strong retirement demand. As of early 2026, median sale prices are running in the $490,000–$560,000 range depending on the source and timeframe. Homes in Sequim spend more time on the market than Seattle-area properties — typically 40–55 days — which gives buyers more room to negotiate than they’d find in King County.
Price ranges vary meaningfully by property type:
- Established neighborhood homes (single-story, 1,400–1,800 sq ft): generally $425,000–$575,000
- Newer construction and planned communities: $550,000–$700,000+
- Acreage and rural properties: wide range depending on location and lot size
- Waterfront and view properties: significant premium, often $700,000 and up
Most Sequim purchases fall well within conforming loan limits, which means standard conventional financing applies without the complexity of jumbo underwriting.
2026 Loan Limits for Clallam County
Sequim is in Clallam County, which is at the standard baseline conforming limit for 2026 — not a high-cost county designation like King, Pierce, or Snohomish.
- Conventional (conforming) loan limit: $832,750
- FHA loan limit: $524,225 (single-family)
- VA loan limit: No limit for eligible veterans with full entitlement
- Jumbo loans: Required for loan amounts above $832,750
Given current price ranges, most Sequim buyers using conventional financing will be well under the conforming limit, which keeps pricing and underwriting straightforward.
Mortgage Programs for Sequim Buyers
Conventional Loans
Most Sequim buyers use conventional financing. With strong equity from a prior home sale, many put 20% or more down — avoiding PMI and keeping monthly payments manageable in retirement. For buyers with less than 20% down, conventional loans with PMI are still available with as little as 3–5% down.
FHA Loans
FHA loans can work well for buyers who want a lower down payment (3.5% minimum) or have credit scores that make conventional pricing less favorable. The 2026 FHA limit for Clallam County accommodates most Sequim price points.
VA Loans
Washington has a significant veteran population, and VA loans are a strong option for eligible buyers — zero down payment required, no PMI, and competitive rates. With no county-level VA loan limits for veterans with full entitlement, VA financing works well across Sequim’s price range.
Asset Depletion and Retirement Income Qualifying
Many Sequim buyers are retired or approaching retirement, which means income documentation looks different than a standard W-2 situation. Qualifying on Social Security, pension income, IRA distributions, or investment accounts is absolutely possible — it just requires the right loan structure and documentation approach. Asset depletion programs can also use retirement account balances to supplement or replace income for qualifying purposes.
If you’re planning to retire before or shortly after buying in Sequim, reach out early — we can structure the loan to work with your actual income picture rather than trying to force it into a conventional W-2 model.
Washington State Down Payment Assistance
Washington State down payment assistance programs such as Home Advantage are available for income-qualifying buyers statewide, including Clallam County. These programs are primarily designed for first-time buyers or those who haven’t owned in the past three years, with income limits that may affect eligibility in some retirement income scenarios.
Buying Before You Retire vs. After
This comes up frequently with Sequim buyers. If retirement is 2–5 years away and you’re seriously considering Sequim, there are real advantages to buying while you’re still working:
- Qualifying on W-2 income is simpler and often more favorable than qualifying on retirement income
- You can lock in the home — and the price — before making the full transition
- If you’re carrying a mortgage on your current home, we can structure the Sequim purchase to work alongside it until you sell
- Renting the property until you’re ready to move is an option some buyers use to offset carrying costs
If you’re already retired, that doesn’t mean financing is off the table — it just means the documentation process is different. Read more about mortgage planning in the years leading up to retirement.
What to Know About Sequim Neighborhoods
Sequim’s residential areas range from established in-town neighborhoods to rural acreage and planned retirement communities. A few areas worth knowing:
- In-town Sequim — walkable to downtown, services, and medical facilities; popular with buyers who want to age in place without car dependency
- Dungeness area — more rural feel, larger lots, views of the Strait of Juan de Fuca; popular with buyers who want space and scenery
- Sunland — established planned community with golf course, active social scene; popular with retirees who want a built-in community
- Bell Hill and surrounding areas — higher elevation, panoramic views, larger parcels
Property types matter for financing. Rural properties on septic and well, manufactured homes, and acreage parcels each have specific underwriting considerations. Reach out before you make an offer if you’re looking at anything outside a standard neighborhood home — I can flag any financing issues before you’re under contract.
Washington State Tax Considerations for Sequim Buyers
Washington has no state income tax on wages or retirement income — a meaningful advantage for retirees drawing from Social Security, pensions, or retirement accounts. There is a state capital gains tax on certain investment gains above $278,000 (2025 threshold), which is worth discussing with your CPA if you’re selling a highly appreciated asset to fund a Sequim purchase.
Property taxes in Clallam County are below the King County average, which adds to Sequim’s affordability relative to the Seattle metro.
Ready to Buy in Sequim?
I’m a licensed Washington State mortgage advisor serving buyers throughout the state, including the Olympic Peninsula. Whether you’re relocating from the Seattle area, moving from out of state, or planning a retirement purchase in Sequim, I’m happy to walk through your options and run some numbers.
There’s no obligation — just a straightforward conversation about what financing looks like for your specific situation.
Rhonda Porter | Licensed Mortgage Advisor | NMLS #121324 | Serving Washington State
