New Construction vs. Resale: Decoding the 2026 Issaquah Market

Hi friends! If you’ve been driving through the Issaquah Highlands lately or eyeing those charming mid-century gems near Olde Town, you know exactly what I’m seeing: a market that is finally catching its breath.

As we step into early 2026, the big question I’m hearing at coffee shops and open houses is: “Simmi, is it smarter to snag a builder’s incentive on a brand-new home, or should I fight for a deal on a resale property with character?”

There isn’t a one-size-fits-all answer, but there is a strategy that will put you ahead of the crowd. Whether you’re a buyer looking for your dream home, a seller trying to stand out, or a fellow agent navigating these shifts, let’s dive deep into the real talk of Issaquah real estate.

The Quick Take: Where do you land?

In the current Issaquah landscape, inventory is hovering around 2.0 to 3.3 months of supply. While that’s still technically a seller’s market by national standards, for us here on the Eastside, it feels like a breath of fresh air compared to the "bidding war frenzy" of years past.

New Construction: The "Luxe & Low-Maintenance" Play

I’ve spent a lot of time lately touring new builds from names like Toll Brothers and local custom builders. In 2026, "New" in Issaquah means more than just fresh paint; it means future-proofing.

• Fixed-Price Security: Builders in pockets like Talus or the remaining Highlands phases often offer fixed-price contracts. In a world where labor and material costs still fluctuate, knowing your base price is $1.8M and won't budge is a huge relief.
  
  
• The "Incentive" Edge: This is the big one. Many builders are offering permanent interest rate buy-downs (dropping a 6.3% market rate to 5.5% or lower). For a $2M loan, that’s thousands of dollars saved every single month.
  
  
• Next-Gen Efficiency: Washington’s energy codes are some of the strictest in the country. We’re talking triple-pane windows, EV-ready garages, and smart-grid integration as standard features.
  
  
• Warranties = Peace of Mind: You aren’t worrying about a roof leak or a failing HVAC for at least a decade. For my busy tech professionals and families, that "hands-off" lifestyle is worth the premium.
  
  

Resale Homes: The "Soul & Strategy" Play

Don't count out our established neighborhoods! Places like Squak Mountain or Mirrormont offer something a new build simply can't: acreage and privacy.

• The Power of the Pivot: If a home has been on the market for 21+ days in this 2026 climate, the seller is usually ready to talk. We are seeing successful negotiations for $50k–$100k off asking prices, or significant credits to help buyers buy down their own rates.
  
  
• The "Lot" Advantage: New builds are often "sidewalk to sidewalk." Resale homes in Issaquah frequently come with 0.25 to 1+ acre lots, mature Douglas Firs, and that true PNW forest vibe.
  
  
• Instant Equity Potential: I love finding "good bones" homes for my clients. If you buy a resale at a discount and put $100k into a modern kitchen, you often see a $200k+ jump in value. That’s how you build real wealth.
  
  

Market Reality: What Sellers & Agents Need to Know

For Sellers: You aren't just competing with the house down the street; you are competing with the builder's marketing machine. If you want to win, your home must be "Turn-Key." Buyers in 2026 are exhausted by high costs; they don't want a "project" unless it's priced like one.

Simmi’s Tip: Consider offering a "Buyer’s Choice" credit in your listing, let them choose between a rate buy-down or a price reduction. It’s a magnet for serious offers.

For Agents: Knowledge is our currency. If you aren't familiar with the Issaquah Clean
Buildings Incentive Program or the latest zoning changes for ADUs (Accessory Dwelling Units), you're leaving money on the table for your clients. We have to be more than "door openers"; we have to be investment strategists.

Action Steps for a Smart Move

1. Audit Your Lifestyle: Do you want a pristine modern box with a view of the Sound, or a 1970s lodge with a creek in the backyard?
   
   
2. Run the "True Cost" Formula: Don't just look at the list price. Use a simple calculation for your monthly carry:
   $$Monthly\ Payment = (Principal + Interest) + (Taxes/12) + (Insurance/12) + (HOA)$$
   Note: New builds often have higher HOAs but lower utility and maintenance costs.
   
   
3. Get a "Simmi-Style" CMA: I don't just look at what sold; I look at why it sold. Is the new construction nearby pulling buyers away from the resale market? We use that data to negotiate your offer.
   
   
4. Inspection is King: For resales, we look for the "Issaquah Big Three": Drainage, Roof Moss/Integrity, and Siding.
   
   

Frequently Asked Questions

1. Are property taxes higher on new construction in Issaquah?

Often, yes. New developments frequently have higher assessments and sometimes special "LID" (Local Improvement District) assessments for infrastructure. Always check the tax parcel!

2. Is it harder to negotiate with a builder than a private seller?

Builders are less likely to drop their "base price" (it hurts their comps), but they are much more likely to give you $30,000 in "design center" credits or rate buy-downs. It’s a different kind of chess game.

3. What’s the "hottest" resale pocket right now?

Olde Town is seeing a massive resurgence. People want walkability to the Salmon Hatchery, Gilman Village, and the local breweries.

Simmi Kher

Simmi Real Estate | Sammamish & Greater Seattle Eastside