A Bidding War Is Taking Place Among Homebuyers

Housing market across WA, CO, ID, OR, and CA are starting to heat up again, and in many cities, home buyers are finding themselves in the middle of intense bidding wars. 

Even with high (though declining) mortgage rates, demand for homes continues to outpace supply, creating a fiercely competitive environment. For many buyers, especially first‑time home buyers, the experience can feel overwhelming — but understanding what’s behind the surge in competition can help you navigate the market more confidently.

Inventory Still Tight

The biggest driver of today’s bidding wars is simple: there aren’t enough homes for sale. Inventory levels across the country remain historically low, largely due to a combination of factors:

• Homeowners locked into low mortgage rates are reluctant to sell and take on higher payments.
• New construction hasn’t kept pace with population growth and household formation.
• Investors and institutional buyers continue to compete for entry‑level homes.

With fewer homes available, buyers often end up competing for the same properties — especially in desirable neighborhoods or price ranges under the local median.

View Current Mortgage Rates Mar, 26, Thu, 2026

Demand Remains Strong Despite High Rates

You might expect high mortgage rates to cool demand, but many buyers are still eager to purchase. Several trends are keeping demand elevated:

• Millennials entering peak homebuying years
• Remote and hybrid work expanding where people can live
• Population growth in Sun Belt and suburban markets
• Rising rents pushing renters toward homeownership

… having said that …

Mortgage Rates Are on a Downward Trend

While mortgage rates may be higher today than they were at their lowest a few years ago, they’re on their way down.

Right now, rates are lower than they were the same time last year, and they’re expected to continue on thai downward trend, driven largely by easing inflation and expectations of Federal Reserve rate cuts. 

This scenario offers buyers and those refinancing a bit more breathing room. Most analysts expect continued modest declines as long as inflation stays on its downward path.

Home Price Trends: High But Holding Steady

Home prices across the Pacific Northwest have been rather stagnant year-over year. Here are the current (as of March 2026) average home prices in the following states:

• Washington : $585,669, down 0.5% YOY
• Oregon: $492,347, down 0.9% YOY 
• Idaho: $468,156, up 1.3% YOY
• Colorado: $535,507, down 2.5% YOY
• California: $765,036, down 1.7% YOY

Be Prepared and Get Ready to Put Forth a More Competitive Offer

In order to find the right home, homebuyers need to place themselves in a position to compete against multiple offers from other homebuyers. And to do that, buyers should follow a few helpful tactics. Some of the most important tips to follow include:

• Hire a local real estate expert in Washington, Oregon, Idaho, California, or Colorado who understands the state of the market right now and can help you find the right home. Right now, the real estate market is not normal. It takes an expert to understand the ins and outs of buying a home in this market.
• Get pre-approved from the market to make sure the offer looks serious to the seller. Those who get pre-approved from a lender will demonstrate a strong desire to buy, pushing their offer to the top.
• Be realistic about your budget and what you can afford. Try to get your finances in order ahead of time. Doing so will help make the entire process easier.
• Make sure your credit profile is up to par. Having a healthy credit score and financial profile can help ensure that you are in a better position to get approved for a mortgage, which is a major step in the homebuying process.
• Save up for a large earnest deposit. The larger your earnest deposit, the more confident sellers may be in choosing you as the winning bidder. Plus, a larger deposit – which goes towards your down payment –this means you will have to take out less of a loan to finance the home purchase.
• Do not forget to keep an eye out for diamonds in the rough. Practically every community in high-demand has a few houses that do not necessarily put their best face forward. Yet, buyers searching for their dream home, even now, have a tendency to avoid homes that do not offer all of the latest bells and whistles or upgrades. Well, if you want to be competitive, then do not be that buyer.
• Come up with a bigger down payment. Much like an earnest deposit, a sizable down payment means a smaller loan amount is needed, which can go a long way at helping you get approved for a home loan to finalize a home purchase.
• Be flexible with closing dates. If the sellers want a certain closing date, try to be as flexible and accommodating as you can. The offer price and deposit amount may be important factors that sellers consider when evaluating offers, but the closing date also plays a key role.
• Lastly, try meeting the seller where they are at. This will provide you the opportunity to make your best offer and a more competitive one.

Ultimately, these are just a few ways to put forth a competitive offer and to prepare for the challenging real estate market ahead.

Ready to Apply For a Mortgage in WA, OR, CO, CA, or ID?

Do you have questions about home loans? Are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, WA, serving Washington state, Idaho, Colorado, Oregon, and California. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages or to get pre-approved for a mortgage.

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