Welcome to 2026!    As we closed the door on 2025, it became clear that it was a year defined by adjustment rather than acceleration. Several economic shifts—particularly mid-year—reshaped how buyers and sellers evaluated timing, value, and risk. My goal with this letter is to share the trends I am watching most closely on Bainbridge Island, place them in a broader Seattle-area context, and help you make informed, confident decisions as we move into the year ahead.

Skyrocketing interest rates through most of 2022 put some much-needed pressure on the housing market after home prices hit record highs across the nation. However, since December, mortgage rates have been on a steady decline through the beginning of February. Even so, many economists remain mixed about whether home prices will continue to decelerate throughout 2023—or even drop at all.