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From a buyer’s perspective, the best-case scenario is to buy a home at the so-called “bottom” of the real estate market. This occurs when house values fall to their lowest point during a downturn, after which they rise for a long period of time.
Some people refer to this as “timing the market.” It’s generally better to focus on your own financial situation, long-term plans, and personal needs, rather than trying to time the market.
Still, it’s helpful to enter the real estate market at a favorable time, from a price standpoint. And that time could be close at hand.
After falling for the past few months, home prices across the Seattle metro area are showing signs that they could start rising again.
Buying a home at the bottom of the market is when a person purchases a property when prices are at their most affordable level. Real estate markets tend to follow cycles. They go through periods of growth (mostly) and occasional decline, due to a variety of economic and market factors.
By purchasing at the bottom of such a cycle, Seattle-area home buyers can get more house for the money while avoiding depreciation. This in turn allows buyers to potentially secure a larger or more desirable property than they could afford during a market upswing.
This kind of timing can also help homeowners build equity more quickly, as the market eventually recovers and property values increase.
But “market timing” comes with its share of risks as well. By attempting to time the market, a home buyer could miss out on a great property. As many real estate experts will tell you, it’s usually best to buy when the time is right for you personally.
Seattle’s housing market has entered 2026 in a period of adjustment—but several indicators suggest a price rebound may be on the horizon.
After years of rapid appreciation, home values have softened slightly, with prices down around 2% year-over-year and inventory rising significantly. This correction is not a sign of collapse, but rather a normalization phase that is creating the conditions for future growth.
One of the strongest signals pointing toward a rebound is improving affordability. Mortgage rates are expected to stabilize in the low-to-mid 6% range, while wage growth is beginning to outpace home price growth for the first time in years. As affordability improves, more buyers are likely to re-enter the market, increasing demand and putting upward pressure on prices.
At the same time, Seattle continues to face long-term supply constraints, a key driver of price resilience. Even with inventory rising in the short term, overall housing supply remains structurally limited due to zoning restrictions, geographic constraints, and sustained population demand—especially in tech-driven employment hubs.
Additionally, buyer activity is already showing signs of stabilization. Well-priced homes are still attracting strong interest, and sales activity remains relatively healthy despite broader economic uncertainty. As inventory growth slows and buyer confidence returns, competition is expected to increase again.
In short, while Seattle home prices have recently dipped, persistent supply shortages suggests that a moderate rebound—rather than a prolonged decline—appears increasingly likely over the next 12–24 months.
In addition to home prices, mortgage rates also play a significant role in the decision-making process for buyers.
According to the weekly survey conducted by Freddie Mac, the average rate for a 30-year fixed mortgage loan increased to 6.38% during the week of March 26, 2026.
The Mortgage Bankers Association recently predicted that 30-year mortgage rates would gradually decline over the coming months and average at around 6% by the end of 2026.
But mortgage rates have risen for the fourth straight week, as of the end of March, 2026, reaching an average of 6.38%. This is the highest level in over six months, driven largely by geopolitical tensions and inflation fears. The Iran conflict has pushed oil prices and Treasury yields higher, causing mortgage rates— which closely track the 10‑year Treasury— to climb again.
Because mortgage rates follow the 10‑year Treasury yield, which has surged to its highest point since July, borrowing costs have climbed accordingly. This spike is cooling buyer demand just as the spring housing season begins, adding pressure to an already strained market.
No one can predict future housing market trends with complete accuracy. Our goal here is to shine a light on recent trends within the Seattle real estate scene, to help home buyers stay up to speed. And a potential rebound is definitely something buyers should be aware of.
We will continue to monitor these and other developments within the Seattle metro area housing market, providing additional reports to keep you informed.
Looking to apply for a mortgage in Seattle? Sammamish Mortgage can help. We serve clients across Washington, Idaho, Colorado, Oregon, and California. We offer many mortgage programs and products with flexible qualification criteria. Visit our website to get an instant rate quote or to use our online mortgage calculator. Please reach out to us if you are ready to get pre-approved for a mortgage.
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