Why Early 2026 Could Be the Sweet Spot for Homebuyers
If buying a home didn’t feel realistic last year, 2026 may look different—and not just because of rates.
Mortgage rates have improved meaningfully versus early 2025. Freddie Mac’s weekly survey shows the average 30-year fixed rate at 6.06% (January 15, 2026) versus 7.04% a year earlier. That kind of shift can translate into real monthly-payment relief and substantial savings over the life of a loan.
At the same time, rates don’t move in a straight line. After a notable dip earlier this month, some reporting shows a modest bounce upward—a normal reminder that waiting for the “perfect” rate can become a moving target.
The bigger story to watch right now in the Greater Puget Sound is buyer activity and competition timing.
Buyer Activity Is Increasing—But We’re Not at Peak Competition Yet
As rates improved, more buyers started re-entering the market. The Mortgage Bankers Association reported mortgage applications up 28.5% week-over-week (week ending January 9, 2026), and reporting tied to that data noted purchase activity strengthening as rates moved lower.
Locally, NWMLS data for December 2025 shows a market that is active, but not overheated:
King County median price: $808,500 (Dec 2025)
King County months of inventory: 2.00 months (still below a “balanced” 4–6 month benchmark, but higher inventory conditions than the ultra-tight years)
King County active listings: up 26% year-over-year (more choice for buyers than last year)
In plain terms: more buyers are paying attention, but we’re still in the part of the year where many households haven’t fully shifted into spring “must-move” mode. That gap—when motivated buyers are back, but the crowd isn’t at full strength—can be a strategic window.
Why “Now” Can Be Ideal in Kirkland, Bellevue, and Seattle
When the market is below its most competitive stretch, buyers often gain practical advantages:
Less intense bidding dynamics (fewer scenarios where you have to “win” the home you want)
More negotiating room on price, repairs, seller credits, and timelines
Cleaner decision-making—you can move decisively without feeling rushed into compromises
NWMLS also tracked consumer/broker activity indicators in December (like showings and keybox access) that suggest engagement is present but not at peak-season levels.
As spring approaches, the usual pattern is that competition strengthens—more buyers jump in, and the same desirable homes in Kirkland, Bellevue, and key Seattle neighborhoods can attract more attention.
Is 2026 Finally Your Year to Buy a Home?
If last year felt out of reach, this is a smart time to re-run the plan with updated realities:
rates that are meaningfully better than a year ago
buyer activity rising
local inventory conditions offering more options than last year in King County
Let’s talk today so we can build your game plan—financing, timing, and a clear “buy box”—so you’re ready to act before the market’s most competitive stretch heats up.
