Many home buyers are feeling a little fatigued with the state of the real estate market in Seattle right now. Unfortunately, hard-earned savings aren’t enough to make a dent in the soaring home prices for many first-time buyers. For those who manage to find a home they like, bidding wars or cash offers can make the competition challenging.

But even in a seller’s market, homebuyers still have a set of tools they can lean on to gain the upper hand once they are ready to make an offer. So for those planning to tackle the Seattle real estate market in the coming months, knowing what to expect can be the differentiator.

To that end, the team at Prevu Real Estate has put together the top five trends homebuyers should be aware of as they plan to make their big purchase in the Emerald City.

Mortgage rates will likely climb

The news has been circulating for a while, and recently it has been confirmed by the Federal Reserve that interest rates will see a slight hike as the Fed seeks to combat inflation. 

The pandemic-era buying surge enabled by historically low-interest rates will begin to face a new headwind as rates on 30-year, fixed-rate mortgages are expected to rise above 4% again.

Historically, those are still reasonably low rates compared to past decades. But the year-over-year increase in mortgages cuts into borrowing capability for buyers. As a result, a greater equilibrium may return to markets in the medium term as demand from some financed buyers slows.

Inventory will remain scarce

The stories you might have heard about the painstaking search for the perfect home that yields no result will continue to be prevalent in the coming months.

The bottom line is that homes for sale are hard to come by right now. It is happening in Seattle and some of the biggest markets across the country. So as much as you might want to take the plunge and buy the first great home you might find, it could be worth weathering the storm until prices and bidding wars begin to settle.

This can give you the time for padding your savings account even further so that you are well prepared for possible bidding wars down the road.

Commission rebates will save buyers money

Houses on the market right now are regularly selling significantly over the asking price. Buyers who are actively searching for homes should expect to not only pay more than the original price but be ready for closing costs as well.

Since prices are not negotiable in this market, buyers are constantly searching for other options to save on their purchase, and the practice of commission rebates is one of the most effective ways buyers can make their purchase more affordable.

Modern brokerages have pushed for a tech-enabled approach to buying a home, allowing buyers to unlock significant savings with a commission rebate. These buyer rebates enable buyers to receive a portion of the commission their broker earns for representing them.

For example, Prevu Real Estate offers the largest commission rebate in Seattle, meaning buyers can receive cashback up to 2% of their purchase price. Buyers can then leverage these kinds of savings to offset closing costs, replenish personal savings, or handle any home-related expenses post-purchase.

The competition will remain fierce

Seattle remains a top choice for many aspiring homebuyers. However, dabbling in the market has taught homebuyers that moving quickly and having the right team is one of the most critical keys to edging out other buyers for a house.

“It takes some buyers multiple offers before winning their slice of Seattle in the current market,” said Cyndy Stewart, General Manager of Seattle for Prevu Real Estate. “However, if you partner with a responsive real estate team that is experienced with negotiating terms quickly, sometimes into the late hours, buyers can increase their chances of success.”

This kind of support can help buyers navigate the competitive landscape of homebuying. But buyers should also be ready for the competition to remain challenging throughout spring.

“The homebuying frenzy feels like it may be nearing a peak with some houses selling for as much as 30% to 60% over asking price,” said Stewart. “But until the inventory of new listings hopefully improves this spring, I doubt things will slow down anytime soon.”

Link light rail expansion will unlock new areas for Seattle homebuyers

Seattle’s traffic is notorious. But the flipside is a broad and far-reaching public transit system. The Link light rail is one of Seattle’s heavily-used transit systems, and with Sound Transit slowly approaching its expansion goal, expect a homebuying surge within the new areas to be served by the system. 

Lynwood and Everett are among the northern cities near Seattle, while further expansions will be connecting Downtown Seattle to the Eastside suburbs via Mercer Island. 

Interested in buying a Seattle home this spring? Browse listings and see how much you can save with Prevu’s Smart Buyer Rebate.