No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.
Do you plan to buy a home in Seattle sometime in 2026? If so, we have an important Seattle house hunting tip for you: Be prepared for competition, but also consider this a great time to buy based on the fact that mortgage interest rates are expected to dip this year.
Recent reports from several sources indicate that the Seattle real estate market is still very competitive as we head further into 2026. Competition among buyers remains high.
Plus, home prices are on the rise in Seattle, which means home prices will be pricier in a few months compared to where they are now. That’s because local housing inventory is below what is considered to be a “balanced” market.
Related: What to expect from Seattle’s Eastside housing market?
Home buyers entering the market this year should be prepared to act quickly and decisively due to a high level of competition. This is one of our top house-hunting tips for Seattle home buyers in 2026.
When it comes to supply and demand, a “balanced” housing market is generally defined as having five to six months of supply. But regional MLS officials recently reported that the Seattle area has a 3.5-month supply of inventory right now.
That’s essentially the situation in surrounding King County as well. Overall in Washington State, the situation isn’t that much better with about a 2.83-month supply worth of available housing, including in Snohomish, Pierce, Kitsap, and Thurston.
This brings us back to our #1 house-hunting tip for Seattle home buyers. Anyone planning to buy a home in the area during 2026 should be prepared for a high level of competition, due to an imbalance between supply and demand.
So what does “prepared” mean, exactly? For one thing, buyers should have their financing arranged before entering the Seattle real estate market. For cash buyers, this means having bank statements to show that the funds are in the bank. Home buyers using mortgage loans should get pre-approved before house hunting to increase their competitiveness.
(In a related article, we’ve covered the importance of mortgage pre-approval when house hunting in Seattle.)
Home buyers should also be familiar with current real estate market trends, including recent sales prices within the area where they want to buy. This will help you make a strong and timely offer, when you find a home you wish to purchase. Use websites like Zillow and Realtor.com to research recent sales prices in your desired neighborhoods.
In Seattle, the average home price is currently $832,857 as of January 2026, according to Zillow. That’s a decrease of 2.1% from the same time last year.
Mortgage Rates Remain Stable
As you may know, the interest rate charged on your mortgage has a direct impact on the overall cost of the home loan. And right now, mortgage interest rates in Washington are relatively high, though they’re coming down. Right now, the rate for a 30-year fixed-rate mortgage is 6.06%.
Experts agree that rates are likely to dip throughout 2026 and dip to 6% by year-end or even lower.
You can also prepare for your house-hunting experience by downloading our exclusive and highly informative e-book, the Seattle Home Buying Guide.
This 23-page guide offers insight into the current real estate market, and provides a wealth of tips relating to house hunting, mortgage loans, and more.
Best of all, you can download the Seattle home buying and house hunting guide for free to start reading it immediately.
Sammamish Mortgage has been serving home buyers across the Seattle metro area since 1992. We are a family-owned company located in Bellevue, Washington. We offer highly competitive rates on a variety of mortgage products. And, as you can see, we go to great lengths to educate our customers!
Will you need mortgage financing to buy a home in Seattle, WA? We can help. Sammamish Mortgage has been serving buyers across the Pacific Northwest since 1992. We currently lend in all of Washington, Oregon, Idaho, Colorado, and California and offer a wide variety of mortgage programs and products with flexible qualification criteria, including our Diamond Homebuyer Program and Cash Buyer Program, among others. Visit our website to get an instant rate quote or use our mortgage calculator. Please contact us today with any financing-related questions you have.
Whether you’re buying a home or ready to refinance, our professionals can help.
{hours_open} - {hours_closed} Pacific
No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.
Adjust the parameters based on what you want to track