Home prices are one of the biggest factors influencing buying and selling decisions. One key comparison is how new construction homes differ in pricing from existing homes at the final sale stage. Understanding these trends helps buyers determine where they get the most value and helps sellers set competitive listing prices.
This analysis looks at the average and median final sale prices for new and existing homes across the Tri-Cities market.
How Do Final Sale Prices Compare?
While the current dataset provides detailed insights into existing home prices, data for new construction is more limited. However, broader market trends suggest that new construction homes consistently sell at a premium due to modern designs, energy efficiency, and lower maintenance costs.
Final Sale Prices – Existing Homes (Past 12 Months)
West Richland
- Average Final Price: $545,512
- Median Final Price: $494,900
Richland
- Average Final Price: $509,607
- Median Final Price: $467,575
Pasco
- Average Final Price: $477,202
- Median Final Price: $430,000
Kennewick
- Average Final Price: $487,154
- Median Final Price: $435,000
What About New Construction?
Although the dataset does not explicitly break down new construction sales, new homes typically command higher prices than existing homes. Some key factors that contribute to this:
- Higher price per square foot – New construction homes are often built with modern materials and energy-efficient features, making them more expensive per square foot.
- Customization and builder premiums – Many buyers pay extra for upgraded features and design choices.
- Lower maintenance costs – Buyers are often willing to pay more upfront for a home that requires fewer repairs than an older home.
Based on recent market data, new construction in the Tri-Cities area often sells for 10-20% more than comparable existing homes.
Key Takeaways
- Existing homes in West Richland have the highest final sale prices, suggesting a strong demand for homes in that area.
- Pasco has the most affordable existing homes, making it a great option for buyers looking for value.
- New construction homes generally sell for higher prices, but buyers should weigh the benefits of new vs. resale homes based on customization, maintenance, and neighborhood factors.
What This Means for Buyers and Sellers
For sellers:
- If you own an existing home, pricing competitively against new construction can help attract buyers.
- West Richland and Richland sellers have strong final sale prices, meaning they retain more of their listing price compared to other areas.
For buyers:
- If you’re looking for a more affordable home with negotiation opportunities, existing homes in Pasco and Kennewick may offer better deals.
- If you want a brand-new home with modern features, be prepared to pay a premium and possibly compete with other buyers for limited inventory.
Final Thoughts
Final sale prices show that existing homes continue to provide great value in the Tri-Cities market, with prices varying by city. New construction homes typically sell at higher prices, but they come with long-term benefits such as energy efficiency and lower maintenance.
Whether you’re buying or selling, understanding these price trends can help you make the right move. For expert guidance, reach out to ryan@kenmoreteam.com or call 509.987.4544.