True, you have quoted God bara Israel, which is a physical creation as we can see through the genealogies in Genesis. Why not choose that bara instead of the poetic figurative bara in Psalms?
But he is asking for a new heart, right? A new creation? Not the old sinful heart to be chosen or pronounced as clean the way a pastor can pronounce somebody husband or wife?
Sure. If bara can be used for both physical and not physical creation, then just the word alone is not enough to say whether Genesis 1 is physical or not. So how can we know? Understanding the meaning of the word from the surrounding context is a reading comprehension skill taught to kids in elementary school. The key - surrounding context. So don't go reading Psalms if you want to understand one word in Genesis. Read Genesis.
We've already done that too, we can take another look at Genesis if you want.
Day 1, bara isn't used.
Genesis 1:3-5 ESV
[3] And God said, “Let there be light,” and there was light. [4] And God saw that the light was good. And God separated the light from the darkness. [5] God called the light Day, and the darkness he called Night. And there was evening and there was morning, the first day.
However we see that God called the light day and the darkness night. That's assignment, designation. Appointment. It's not material creation.
Genesis 1:6-8 ESV
[6] And God said, “Let there be an expanse in the midst of the waters, and let it separate the waters from the waters.” [7] And God made the expanse and separated the waters that were under the expanse from the waters that were above the expanse. And it was so. [8] And God called the expanse Heaven. And there was evening and there was morning, the second day.
Day two God makes and expanse, what is an expanse but emptiness? Nothing is made here.
Genesis 1:11-13 ESV
[11] And God said, “Let the earth sprout vegetation, plants yielding seed, and fruit trees bearing fruit in which is their seed, each according to its kind, on the earth.” And it was so. [12] The earth brought forth vegetation, plants yielding seed according to their own kinds, and trees bearing fruit in which is their seed, each according to its kind. And God saw that it was good. [13] And there was evening and there was morning, the third day.
Day three, again, God doesn't even make anything, bara is never used. It says that the Earth brought forth vegetation. That's not God materially creating anything. The earth brought it forth.
Genesis 1:14-19 ESV
[14] And God said, “Let there be lights in the expanse of the heavens to separate the day from the night. And let them be for signs and for seasons, and for days and years, [15] and let them be lights in the expanse of the heavens to give light upon the earth.” And it was so. [16] And God made the two great lights—the greater light to rule the day and the lesser light to rule the night—and the stars. [17] And God set them in the expanse of the heavens to give light on the earth, [18] to rule over the day and over the night, and to separate the light from the darkness. And God saw that it was good. [19] And there was evening and there was morning, the fourth day.
Day four, we see that God made something, but immediately after we see that they were made to rule the day and night.
Just like with a birthday cake, I can go to the store and pick up a cake and I can make that cake a birthday cake. I can assign a role to that cake without actually baking it myself.
And so the making of the object is making it into something to fill a purpose, it's not material manufacturing.
Etc etc
Genesis doesn't actually describe God materially creating anything.
At least with Israel, we know that there wasn't an Israel before and then over time eventually there became an Israel. And that's still assuming that the word in Isaiah was being used in a material sense. But we don't even get that in Genesis.