Why More New Homes Doesn’t Mean Another Housing Crash

Lately, you may have seen headlines claiming that new construction inventory is at its highest levels since 2008. It’s true that new-home numbers are up, but here’s where the story often gets misread: we’re not back in 2008. Not even close.

Back then, the market was flooded with both new and existing homes. Today, while new construction has grown, total inventory (new plus resale) still doesn’t compare to the massive oversupply that triggered the housing crash nearly two decades ago.

Here in South Snohomish County and North King County, inventory is improving but the pace remains balanced, not bloated. Buyers finally have more options, yet sellers aren’t facing a glut of competition. That’s a very different market dynamic from what national headlines suggest.

What’s Happening in Our Local Market

• More Choices for Buyers: Neighborhoods like Lynnwood, Edmonds, and Shoreline are seeing more active listings compared to last year. This gives buyers breathing room to shop without the frenzied pace of 2021–2022.

• Still Below Pre-Pandemic Levels: Even with new homes coming online in communities like Mill Creek and Mukilteo, overall inventory is still lower than what we saw in the 2017–2019 market.

• Not a 2008 Situation: The increase in new construction is helping to balance the market, but combined supply isn’t anywhere near the “too much inventory” conditions of the last housing crash.

• Days on Market Creeping Up: Homes in Everett and nearby areas are taking a bit longer to sell compared to last summer. This gives buyers some negotiating power, while sellers need to focus on presentation and pricing.

Why This Matters for Buyers and Sellers

• For Buyers: More inventory means you don’t always have to rush into a decision or waive contingencies. You’ve got a bit more leverage than just a year ago.

• For Sellers: Don’t panic at the word “more inventory.” Homes are still moving, but buyers are choosier. Pricing right and making your home shine are what set you apart.

Bottom Line

National headlines can make it sound like we’re heading back into a housing crisis. The truth in South Snohomish County and North King County real estate is much steadier. More inventory is a good thing—it brings balance to the market.

If you’re curious how this shift affects your specific neighborhood in Lynnwood, Edmonds, Mukilteo, Mill Creek, Shoreline, or Everett, I’d be happy to break down the numbers for you.