Redmond’s 2026 Market Reset: The Real Deal on New Construction vs. Resale

If you’ve been walking through Marymoor Park or grabbing coffee in Downtown Redmond lately, you’ve likely noticed the cranes and the "For Sale" signs staying up just a little longer than they used to.

As we move through early 2026, the question I’m hearing from my clients isn't just "What’s the price?" but "Where is the value?" Is it smarter to lean into the sleek, tech-ready builder incentives of a new townhome near the light rail, or to negotiate a legacy property on Education Hill?

The truth is, we aren't in the "bidding war" era of 2021 anymore, but we aren't in a crash either. We are in a Skill Market. Whether you are buying your first home, selling a long-term investment, or you're a fellow agent navigating these shifts, this guide is about strategy over hype.

Quick Answer: The Redmond Reality

The best move depends on your timeline and your "pain tolerance" for maintenance. Currently, Redmond is in a rebalancing phase. With median days on market hovering around 62 days (up from just 9 days last year) and roughly 30% of listings seeing price reductions, buyers finally have the room to breathe and negotiate. New construction offers fixed-price predictability and financing perks, while resale homes offer larger lots and established community roots.

The Complete Picture: Beyond the Sticker Price

Choosing between a "fresh from the box" home and a "lived-in" classic in Redmond is an investment decision. In a high-price market where the median sale price sits near $1.4M, even a 1% difference in your interest rate or a hidden repair cost can shift your financial future.

Simmi’s Insight: Don’t just look at the monthly payment. Look at the Total Cost of Ownership. A new build might have a higher sticker price but lower utility and maintenance costs. A resale might have a lower entry price but require $100k in "unseen" updates like a new roof or heat pump.

Key Insights: Breaking Down Your Options

New Construction: The "Tech-Forward" Edge

Redmond is evolving from a suburb into a true urban hub, especially with the light rail expansion.

• Incentives are the New Discount: In 2026, builders are focused on "moving units." Expect to see permanent mortgage rate buy-downs (dropping a 6.5% market rate to 5.5% for the life of the loan) and covered closing costs.
  
  
• Energy Efficiency & 2026 Codes: New builds in Marymoor Village or North Rose Hill are built to strict Washington green codes. We’re talking triple-pane windows, EV-ready garages, and smart-home integration that saves you hundreds on monthly bills.
  
  
• The "Lock and Leave" Lifestyle: Many of Redmond's new projects are townhomes or "Urban Series" homes. They are perfect for the busy tech professional who wants luxury without the weekend yard work.
  
  

Resale Homes: The Power of Negotiation

If you want a yard for the dog or a view of the Olympics, resale is your playground.

• Negotiation Leverage: With homes sitting for 60+ days, sellers are more open than ever. We are seeing successful requests for repair credits, seller-paid buy-downs, and even price drops of 3–5% below list.
  
  
• The Lot Size Advantage: New construction often maximizes the footprint. In established areas like English Hill or Bear Creek, you’re getting the "Redmond Vibe"—mature trees, privacy, and space between neighbors.
  
  
• Instant Equity Potential: Buying a "well-loved" home on Education Hill and doing a strategic kitchen remodel can often net you more appreciation than buying a top-of-the-market new build.
  
  

For Sellers and Agents: How to Win Now

If You Are Selling:

You aren't just competing with the neighbor's house; you are competing with builder warranties and rate buy-downs. 1. Price for the First 14 Days: If you miss the mark early, the "Days on Market" counter becomes your enemy.

2. Highlight the Un-replicable: You can't "build" a 10,000 sq. ft. lot or a walk-score of 90 in most new subdivisions. Lead with that.

3. Offer the Incentive: Consider offering a "Seller Credit for Rate Buy-down." It’s often more effective than a flat price cut because it directly lowers the buyer's monthly payment.

If You Are an Agent:

This is a Skill Market. * Data over Hype: Be prepared to explain why a home is sitting despite the low inventory.

• Master the Buy-Down: Learn how to structure 2-1 or 3-2-1 buy-downs in your offers. It’s the single most powerful tool for your buyers right now.
  
  
• Zoning Expert: With the "Redmond 2050" code updates, many single-family lots now allow for more units. If you aren't talking to your sellers about their lot's "hidden" development value, you’re leaving money on the table.
  
  

Action Steps

1. Define Your "Must-Haves": Is it walkability to the light rail or a quiet cul-de-sac? Redmond has both, but they require different strategies.
   
   
2. Get a "Real" Pre-Approval: In 2026, lenders are getting creative. Make sure your lender understands the specific tax assessments of new construction in Redmond.
   
   
3. Tour Both: Even if you think you want new, tour a resale in Education Hill. Compare the "feel" of the neighborhood.
   
   
4. Analyze the "Carry Cost": Use the formula for your monthly payment to compare a $1.5M new build (with a builder buy-down) vs. a $1.35M resale (at market rate).
   $$Monthly\ Payment = (Principal + Interest) + Taxes + Insurance + HOA$$
   
   

Frequently Asked Questions

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

Generally, yes. New assessments are based on the current high purchase price, and some new developments may have additional "LID" (Local Improvement District) fees for infrastructure.

2. Is Redmond still a "Seller's Market"?

Technically, yes (anything under 4 months of inventory is), but it feels like a "Neutral Market" because buyers are being so much more selective.

3. What’s the biggest risk with new construction?

Timeline shifts. If the builder hits a delay, your interest rate lock might expire. Always ask about "extended rate lock" options.

Closing

The Redmond market in 2026 is full of opportunity, but it’s no longer a "set it and forget it" environment. Whether you want the sleek lines of a modern townhome or the charm of a mid-century classic, the key is to stay informed and negotiate with confidence.

Would you like me to create a custom market analysis for your specific Redmond neighborhood or help you compare a builder’s incentive package against a resale deal? Let's chat!

Simmi Kher

Simmi Real Estate | Sammamish & Greater Eastside