Tri-Cities Real Estate Market Update: Existing Construction vs. New Construction
The real estate market in the Tri-Cities has seen notable shifts over the past 12 months, driven by supply, demand, and economic factors. In this summary, we’ll examine the performance of existing construction homes and new construction properties, focusing on key statistics and market trends. Here’s what you’ll learn:
- The speed and volume of the market for both existing and new construction homes.
- How pricing trends differ between these two market segments.
- Insights into inventory changes and days on market trends.
- Which market segment offers the best opportunities for buyers and sellers.
Let’s dive into the numbers and see what the data tells us about the current state of the real estate market in the Tri-Cities area.
| Metric | Existing Construction | New Construction |
|---|---|---|
| Total Listings (Past 12 Months) | 2,582 | 932 |
| Sold Listings (Past 12 Months) | 1,993 | 540 |
| Average Final Price | $497,067 | $567,609 |
| Median Final Price | $445,000 | $509,900 |
| Average Days on Market | 51 | 126 |
| Average Price/Sq. Ft. | $242.57 | $283.75 |
Key Insights and Market Trends:
- Market Speed: Existing construction homes are selling faster, with average days on market at just 51 days compared to 126 days for new construction.
- Inventory Trends: New construction shows signs of inventory buildup, with only 58% of listings sold in the past 12 months versus 77% for existing homes.
- Pricing Trends: While new construction commands a 17% premium in price per square foot, existing homes offer slightly larger spaces at a lower overall cost.
- Buyer-Seller Conditions: The existing construction market favors sellers with high demand and tighter inventory, whereas buyers in the new construction market may have more negotiation leverage.
Based on these trends, I’m giving the following scores for market conditions (10 is most favorable):
- Existing Construction: Buyer Score: 3.5 | Seller Score: 6.5
- New Construction: Buyer Score: 6.0 | Seller Score: 4.0
Which Market Segment is Best?
For buyers, the new construction market offers opportunities to purchase modern, high-quality homes with more negotiation leverage. However, sellers of existing construction are in a stronger position due to faster turnover and higher demand.
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