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For many homebuyers, one of the biggest questions in today’s housing market is whether new homes will be available for purchase this year.
After several years of tight housing supply, rising mortgage rates, and strong buyer demand, the availability of newly built homes has become an important factor shaping the real estate market.
But today, mortgage rates are on their way down, and inventory is increasing. While supply challenges still exist in many regions, the outlook for new home construction and availability is improving as builders work to meet demand.
Housing inventory across the Pacific Northwest and nationwide has remained relatively limited compared to historical averages.
For years, the country has faced a housing shortage caused by factors such as underbuilding after the 2008 financial crisis, population growth, and increased demand for homeownership. These conditions led to intense competition among buyers, especially a few years ago when mortgage rates were historically low.
However, the market has gradually begun to rebalance.
Housing inventory, while still low in terms of a balanced market, has increased in many regions as mortgage rates stabilized and buyer demand cooled slightly. This shift has given builders more time to complete projects and bring new homes to market. While supply is still not abundant in every area, new construction is becoming a more significant contributor to overall housing inventory.
As of early 2026, home builders in the US are showing a cautious and uneven increase in construction, driven more by multifamily projects than single-family homes, despite a deep national housing shortage.
While overall housing starts rose in January 2026 for the third consecutive month, single-family construction remains weak due to high builder costs and affordability challenges.
Key Trends in Early 2026:
Builder Sentiment: Home builder confidence remains in negative territory (below 50), with a reading of 36 in February 2026, marking 22 consecutive months of pessimistic sentiment.
It’s tough to tell what the markets in Washington, Idaho, Colorado, California, and Oregon will do over the next year, but up until now, they’ve shown signs of cooling.
The average home price in Washington currently stands at $585,669. That’s a 0.5% decrease from the same time last year.
In the state of Oregon, the average home price is now $492,347 after having decreased 0.9% from the same month last year.
The average home price in Idaho is $468,156. That marks a 1.3% increase from the same time last year.
Colorado’s average home price is currently $535,507. Prices have decreased by 2.5% over the past 12 months.
According to Zillow, the average home price in California is currently $765,036, a dip of 1.7% year-over-year.
Considering the dire housing inventory situation across the country, new housing construction will provide some much-needed relief and access to homes for buyers on the prowl for a new home.
Mortgage applications are also on the rise. According to the Mortgage Bankers Association (MBA), mortgage applications rose by 3.2% for the week ending March 6, 2026, marking the second‑highest activity level seen since 2022. That, coupled with decreasing interest rates paints the picture of a bright future for real estate.
Are you considering buying a home this year? Sammamish Mortgage can help. We are a local mortgage company serving the broader Pacific Northwest region, including Washington State, Idaho, Colorado, Oregon, and California. We are proud to offer a wide variety of mortgage programs and products with flexible qualification criteria since 1992. Visit our website to get an instant rate quote or to use our online mortgage calculator. Please contact us if you have any questions or are ready to get pre-approved for a mortgage.
Whether you’re buying a home or ready to refinance, our professionals can help.
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