I think this is a little misleading since it's based on YOY changes..and Seattle was ranked the #8 BEST place last year.

Quoted: But in cities like Seattle, Jacksonville, Fla., and St. Louis—the hardest major cities in which to sell a home—even sellers who have substantially lowered their prices aren’t finding it easy to move their houses.
...
Here’s the specific entry for #1 ranked Seattle. Here’s the whole list of Forbes’ hardest places to sell a home:

This is a smart move -- both for the newspapers and Zillow.

Quoted: For example, a San Francisco furniture retailer can simultaneously target local and national audiences of consumers searching for San Francisco homes on Zillow, as well as the local online readers of Bay Area papers such as the San Francisco Chronicle, San Jose Mercury News and the Contra Costa Times. A national real estate brokerage could choose to have their ads seen by Zillow’s targeted monthly audience of 5 and a half million homeowners, buyers and sellers, as well as the readership of hundreds of local papers in local markets they want to reach.

wow.

Quoted: Renters of one-bedrooms in Manhattan could expect to pay $2,691, on average, according to the July listings by Citi Habitats, though that figure has jumped to $3,462 in a doorman building.

Some really great data re: real estate trends in Capitol Hill. You can get this data for other neighborhoods as well.

This is consistent with what I've heard from my friends who've recently bought places in the area.

Quoted: "Home buyers, it's time to haggle," admits the P-I, going on to point out that King County's median house-sales price has dropped 6.2% from a year ago. Seattle is down 2.7%.

Quoted: The National Association of Realtors has settled its antitrust case with the Department of Justice, and has given online realtors full access to the industry-standard Multiple Listing Service (MLS) Databases. The MLS is a comprehensive listing of homes that are are available on the housing market, and until this point the NAR has restricted access to online brokers.

Quoted: A new report affirms that apartments are about as hard to find as they have been at any time in the past 27 years and rents are on the rise, but it also offers some hope for renters.

Quoted: Between 2000 and mid-2007, the median home price soared 64.9% to $229,200. The median income, meantime, rose just 16.6%. For would-be buyers, the math doesn't work.

Quoted: That marks the first time homeowners' debt on their houses exceeds their equity since the Fed started tracking the data in 1945.