The Tri-Cities real estate market for new construction—covering Kennewick, Richland, Pasco, and West Richland—continues to evolve, reflecting shifting dynamics between buyers and sellers. By examining the data from the past 12 months, year-to-date, last full month, and current month, we can pinpoint key trends shaping the housing market.
With buyer and seller scores providing insight into market competitiveness, this analysis highlights current opportunities and challenges for those looking to buy or sell in the region.
Market Overview: A Year in Review
Over the past 12 months, the Tri-Cities market has seen 927 new listings, averaging 2.53 new listings per day. Meanwhile, 526 homes sold, equating to 1.44 homes sold per day.
Pricing Trends
- Average Listing Price: $577,013
- Median Listing Price: $517,850
- Final Sold Price (Avg.): $548,064
- Final Sold Price (Median): $489,000
- Price per Sq. Ft. (Avg.): $284.69
Days on Market (DOM)
- Average DOM: 131 days
- Median DOM: 93 days
- Maximum DOM: 1,306 days
Market Conditions
- Buyer Score: 6.0 (Indicates a market that slightly favors buyers)
- Seller Score: 4.0 (Suggests sellers faced some competition)
Key Takeaway: While the market has maintained a steady flow of listings and sales, longer days on market suggest that homes have taken time to sell, allowing buyers more negotiation power.
Year-to-Date: A Slow Start for 2025
With 124 listings so far this year, the market is tracking 2.38 new listings per day, slightly below last year’s average. Sales, however, remain steady at 1.17 homes per day.
Year-to-Date Buyer & Seller Scores
- Buyer Score: 5.1
- Seller Score: 4.9
Compared to last year, this balance suggests a market still slightly favoring buyers but becoming more neutral. This is a shift from a stronger buyer’s market seen in late 2024, indicating that seller confidence is returning.
Last Full Month: January 2025 Market Insights
January 2025 saw 80 new listings, translating to 2.58 new listings per day—an increase from the overall 2024 trend. However, only 32 homes sold, meaning a ratio of 1.03 homes sold per day.
Price Trends
- Average Listing Price: $602,505
- Median Listing Price: $519,450
- Final Sold Price (Avg.): $550,466
- Final Sold Price (Median): $472,386
Days on Market
- Average DOM: 85 days
- Median DOM: 30 days
Buyer & Seller Scores
- Buyer Score: 6.5
- Seller Score: 3.5
Market Takeaway: The higher buyer score and lower seller score suggest that January still favored buyers, despite a slight increase in home prices. Longer time on the market meant buyers could negotiate better deals.
Current Month: February 2025 Market Trends
So far in February, 44 new listings have hit the market, averaging 2.1 new listings per day. Meanwhile, 29 homes have sold, resulting in 1.38 homes sold per day.
Price Trends
- Average Listing Price: $516,862
- Median Listing Price: $489,349
- Final Sold Price (Avg.): $581,005
- Final Sold Price (Median): $475,850
Days on Market
- Average DOM: 42 days
- Median DOM: 13 days
Buyer & Seller Scores
- Buyer Score: 3.2
- Seller Score: 6.8
Key Insight: February marks a strong shift toward a seller’s market. The low buyer score and high seller score indicate that buyers are losing leverage, and homes are moving faster.
Key Market Trends and What They Mean for You
1. Homes Are Selling Faster
- January’s average DOM: 85 days → February’s average DOM: 42 days
- January’s median DOM: 30 days → February’s median DOM: 13 days
The significant drop in time on market suggests that well-priced homes are selling quickly in February compared to the sluggish pace in January.
What this means: If you’re a seller, this is good news—homes are moving faster, reducing the need for price reductions.
2. Rising Seller Advantage
- January Buyer Score: 6.5 | Seller Score: 3.5
- February Buyer Score: 3.2 | Seller Score: 6.8
There has been a dramatic shift in seller confidence. Sellers are now seeing stronger demand, fewer price negotiations, and quicker sales.
What this means: Buyers should move fast and come prepared with competitive offers. Expect fewer price reductions and stronger seller control over deals.
3. Prices Are Stabilizing
While prices fluctuated over the last 12 months, February shows:
- A higher final sales price ($581,005 average) compared to January ($550,466 average)
- A narrowing gap between listing and final prices, meaning sellers are negotiating less
What this means: Buyers should expect less wiggle room on pricing as demand increases.
4. Limited Inventory and Competitive Conditions
The number of new listings per day is slightly lower than last year (2.38 YTD vs. 2.53 last year). With homes selling faster and a higher seller score, buyers are competing over fewer listings.
What this means: Expect more multiple-offer situations and rising prices if demand remains steady.
Final Thoughts: What Should You Do Next?
For Sellers:
- NOW is a great time to list! Buyer demand is increasing, homes are selling faster, and prices are holding strong.
- Price competitively to take advantage of quick-moving conditions.
For Buyers:
- Act fast! Properties are selling quicker, and seller power is increasing.
- Be ready to compete. A strong initial offer will make all the difference.
- Get pre-approved. Having financing in place can win you a home in a competitive bid.
Looking Ahead
With February showing a shift back toward a seller’s market, the next few months could bring higher prices, faster sales, and less room for negotiation. If you’re thinking about making a move, now is the time to strategize.
Need Help?
For expert guidance on buying or selling in the Tri-Cities market, reach out to ryan@kenmoreteam.com or call 509.987.4544. Staying informed and working with professionals will help you make the best real estate decisions in 2025.