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Who Is Winning in the 2026 Real Estate Market (Two of the Three Will Surprise You)
By Dan Keller | Mortgage Advisor | New American Funding | Everett, WA
Not everyone is sitting on the sidelines in this market.
While a lot of buyers are waiting for rates to drop, three specific groups are stepping into some of the best conditions this market has offered in nearly a decade. Two of them might surprise you.
Here is who is winning in the 2026 real estate market across King, Snohomish, and Skagit Counties, and exactly why.
Group 1: First-Time Homebuyers
For the first time in roughly ten years, first-time buyers have real negotiating leverage in this market.
That is not an overstatement. During the frenzy of 2021 through 2023, first-time buyers were routinely getting crushed. Waiving inspections, waiving contingencies, offering tens of thousands above asking price, and still losing to cash buyers or more experienced purchasers. It was brutal.
That dynamic has shifted meaningfully.
Inventory across Snohomish County has climbed to its highest level since 2015. Homes are sitting on the market longer. Sellers who have been listed for 30, 45, or 60 days are far more motivated to work with a prepared buyer than they were when everything sold over a weekend with multiple offers.
What that means for first-time buyers right now is this: offers are getting accepted at or below list price. Seller concessions are being negotiated. Closing cost credits are on the table. Rate buydowns are being funded by sellers. Inspection contingencies are back in offers that are actually getting accepted.
This combination of flexibility and affordability tools has not been available to first-time buyers in this market for a very long time.
The buyers capitalizing on this right now are the ones who came in prepared. They got their budget dialed in early. They went through a full pre-underwrite rather than a surface-level pre-approval, so when they write an offer, the seller knows they are not going to fall apart in escrow. And they worked with a lender who could help them structure the offer to get the most value out of the concessions available.
If you are a first-time buyer in Everett, Marysville, Mill Creek, Lynnwood, Edmonds, Mukilteo, Lake Stevens, Monroe, or anywhere else in the greater Seattle area, this is your window. It will not stay open indefinitely. When rates fall and sidelined buyers flood back in, this level of negotiating power goes away fast.
Group 2: Veterans and Active-Duty Service Members
This one genuinely surprises people, and it should not.
The VA loan is one of the most powerful mortgage products available anywhere in the United States. Zero down payment. No monthly mortgage insurance. Consistently competitive interest rates. And in 2026, for eligible veterans and active-duty service members in high-cost counties like Snohomish and King, there is no loan limit for borrowers with full entitlement. That means a qualified veteran can finance a home at $900,000, $1,000,000, or above with zero down, subject to income qualification and the property appraising at value.
Sellers can also pay all of a VA buyer's allowable closing costs and contribute up to 4% of the loan amount in additional concessions. In the current market, where sellers are actively looking for ways to close deals, that concession structure is being used more effectively than it has been in years.
Here is the obstacle VA buyers have historically faced in this market: perception.
Many real estate agents and sellers have believed that VA loans are difficult. That the VA appraisal process is complicated. That deals are more likely to fall apart. That belief has worked against veterans for years, especially in a competitive market where listing agents were steering their sellers toward conventional or cash offers.
That perception problem does not exist when a VA buyer comes in pre-underwritten through a direct VA lender who knows the program cold and can walk a listing agent through the file in plain language. The objections disappear. The deal looks like any other clean, well-prepared offer.
In a balanced market where sellers are more motivated and less able to cherry-pick financing types, the VA loan's advantages come through more clearly. Veterans and active-duty service members serving in the greater Puget Sound area, including those stationed at Naval Station Everett and throughout the region, are in a stronger position right now than they have been in close to ten years.
If a VA loan is part of your conversation, the lender you choose matters enormously. Working with a direct VA lender who processes these loans regularly, who knows the Minimum Property Requirements, who has relationships with local agents, and who can close on time is a completely different experience from a lender who does VA loans occasionally and treats every step like a surprise.
Group 3: Sellers Who Do Not Have to Sell First
This one is less surprising but equally important, and it affects a large segment of move-up buyers in this market.
One of the biggest obstacles for homeowners looking to buy their next home is the contingency problem. They want to buy before they sell, but they cannot qualify for the new mortgage while still carrying the old one. So they either sell first and need somewhere to live, or they write a contingent offer that sellers in any competitive situation are reluctant to accept.
There are two solutions working well right now for buyers in this position.
Qualifying with both mortgages. For buyers whose income supports carrying two housing payments simultaneously, even temporarily, this is the cleanest path. A full pre-underwrite will show exactly what the debt-to-income picture looks like with both mortgages factored in. Some buyers are closer to qualifying for this than they think.
Bridge loans. A bridge loan is a short-term financing solution that allows a homeowner to access the equity in their current home before it sells, using those funds to purchase the next home without a contingency. Once the original home sells, the bridge loan is paid off. In the current market, where sellers are more likely to accept well-structured non-contingent offers, bridge loan buyers are writing cleaner, more competitive offers while still having the financial flexibility they need.
Both of these strategies require careful underwriting and a lender who knows how to structure them correctly. Done right, they allow a move-up buyer to compete like a non-contingent buyer, which in this market is a real advantage.
Why This Window Matters
The conditions that are making 2026 advantageous for these three groups are directly tied to where the market is right now, and markets change.
When mortgage rates eventually fall, buyer demand will increase quickly. Inventory that has been building up will get absorbed. Sellers who are currently motivated and flexible will regain leverage. The negotiating power that first-time buyers and VA buyers have right now will compress.
The buyers who look back on 2026 and 2027 as the years they made a great move will be the ones who acted on the information rather than waiting for conditions to feel more certain. Certainty in real estate usually arrives right after the opportunity has passed.
Frequently Asked Questions
Q: Why do first-time buyers have an advantage in Snohomish County right now?
Inventory in Snohomish County has reached its highest level since 2015, homes are taking longer to sell, and sellers are more willing to negotiate on price, closing costs, and rate buydowns than at any point in the past several years. First-time buyers who come in pre-underwritten and prepared are getting offers accepted with terms that simply were not available during the competitive years of 2021 through 2023.
Q: Is the VA loan a good choice in the greater Seattle market in 2026?
For eligible veterans and active-duty service members, the VA loan is one of the strongest tools available in this market. Zero down payment, no monthly mortgage insurance, no loan limit for borrowers with full entitlement in Snohomish and King Counties, and seller concession flexibility up to 4% of the loan amount make it exceptionally powerful. The key is working with a direct VA lender who processes these loans regularly and can address listing agent concerns proactively.
Q: What is a bridge loan and how does it work in Washington state?
A bridge loan is short-term financing secured against your current home's equity that allows you to purchase your next home before your current home sells. It eliminates the contingency problem for move-up buyers and allows you to write a clean, non-contingent offer. Once your current home sells, the bridge loan is paid off. Bridge loans are a strong option for homeowners in King, Snohomish, and Skagit Counties who have significant equity in their current property.
Q: Can a VA buyer negotiate seller concessions in this market?
Yes. VA loan rules allow sellers to pay all of a buyer's allowable closing costs and contribute up to 4% of the loan amount in additional concessions. In a market where sellers are actively looking to close deals, VA buyers are in a strong position to negotiate meaningful concessions that reduce out-of-pocket costs at closing.
Q: Do I need a special lender for a VA loan?
Not all lenders process VA loans the same way. Working with a direct VA lender who handles these regularly, understands the VA appraisal process and Minimum Property Requirements, and has experience communicating with listing agents about VA offers makes a measurable difference in how smoothly your transaction goes. The perception that VA loans are difficult usually comes from buyers who worked with lenders who did not specialize in them.
Q: How long will this buyer-friendly market last?
Nobody can predict exactly when conditions shift, but the pattern from prior cycles is clear. When mortgage rates fall, buyer demand increases, inventory gets absorbed, and seller leverage returns. The negotiating advantages available to first-time buyers and veterans in 2026 are directly connected to the current level of inventory and the number of buyers sitting on the sidelines. That equation changes when rates move.
Let's Get You Dialed In to Win
Whether you are a first-time buyer, a veteran or active-duty service member, or a move-up buyer looking at your options, the starting point is the same: understanding exactly where you stand and what strategy makes the most sense for your specific situation.
That conversation is free, it takes about 30 minutes, and it gives you a clear picture instead of a guess.
Come to the free monthly First-Time Homebuyer Class in Everett to learn the full process in a no-pressure setting. Register at happyhomebuyerclass.com. Or reach out directly and let's build your plan.
Call or text (425) 350-7136. Email dan.keller@nafinc.com. Or book a time at calendly.com/meetdankeller.
Let's connect. Cheers!
— DK
Dan Keller | NMLS #115349 | New American Funding | 2733 Colby Ave, Everett, WA 98201
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