The market is showing signs of softening in both the single family home and condo sectors. However, Seattle's real estate environment is made up of micro markets with neighborhoods exhibiting different market characteristics.
Compared to other parts of the city, the Ballard, Wallingford, Fremont, Greenwood and Green Lake areas remain a relatively strong market. In respects to Ballard & Greenwood, those neighborhoods still provide affordable housing opportunities in the city, though, prices continue to rise.
The trend does show increasing inventory and fluctuating pricing levels. In some areas, median prices are beginning to plateau, though still reflecting a premium over the prior year. I believe the softening market will continue, though I don't foresee a price reversal. As for waiting another six months, one thing to factor is that interest rates are trending upwards and some reports predict rates could reach 7% by the end of the year. As interest rates increase, buying power decreases.
As for a difference between the house/condo market in Seattle, the primary difference is affordability. Prices for single family homes have skyrocketed and are out of reach for many, so condos and townhomes have filled the void. However, most new condo developments are focusing on higher-end homes.