The first quarter of 2025 has revealed some important trends in the Tri-Cities housing market. Whether you’re thinking about buying, selling, or investing, understanding how new construction compares with existing homes can help you make smarter real estate decisions.
This analysis looks at single-family homes listed and sold between January 1 and March 31, 2025, across Kennewick, Pasco, Richland, and West Richland. While both segments are active, their performance this year highlights distinct differences in pricing, availability, and buyer-seller dynamics.
Inventory and Sales Activity
New Construction:
- 246 homes listed (2.7 new listings per day)
- 132 homes sold (1.45 sales per day)
- Just over half of listed new homes sold in the first quarter
Existing Construction:
- 611 homes listed (6.71 new listings per day)
- 455 homes sold (5 sales per day)
- Over 74% of listed existing homes sold in the same period
Insight: The existing home market is seeing faster movement and more consistent absorption. New construction homes remain available longer, offering more selection but slower sales pace.
Pricing and Affordability
Average Prices:
- New Construction:
- Listing: $566,982
- Sold: $560,258
- Existing Construction:
- Listing: $533,186
- Sold: $496,644
Median Prices:
- New Construction: $495,495 list | $492,250 sold
- Existing Construction: $474,900 list | $443,000 sold
Price per Square Foot:
- New Construction: $287.06 (avg.), $289.16 (median)
- Existing Construction: $245.35 (avg.), $243.96 (median)
Insight: New construction homes are clearly more expensive, both in total and per square foot. While the pricing gap reflects newer features, energy efficiency, and warranties, it can impact affordability—especially for first-time buyers or budget-conscious households.
Sales Speed (Days on Market)
New Construction:
- Average DOM: 120 days
- Median DOM: 89 days
Existing Construction:
- Average DOM: 61 days
- Median DOM: 38 days
Insight: Existing homes are selling much faster. The average new construction home takes about twice as long to sell. For buyers, this may offer more time to negotiate or customize. For sellers, especially builders, longer DOM could require adjustments in pricing or marketing.
Buyer and Seller Dynamics
Buyer Score:
- New Construction: 4.3
- Existing Construction: 3.3
Seller Score:
- New Construction: 5.7
- Existing Construction: 6.7
Insight: The existing home market clearly favors sellers, with limited negotiation room and quick sales. New construction, on the other hand, is more balanced—giving buyers a bit more leverage and time to decide, while still offering decent results for builders.
Summary of Key Differences
| Metric | New Construction | Existing Construction |
|---|---|---|
| Listings (YTD) | 246 | 611 |
| Sales (YTD) | 132 | 455 |
| Avg. Sold Price | $560,258 | $496,644 |
| Median Sold Price | $492,250 | $443,000 |
| Avg. Price per Sq. Ft. | $287.06 | $245.35 |
| Median Days on Market | 89 | 38 |
| Buyer Score | 4.3 | 3.3 |
| Seller Score | 5.7 | 6.7 |
Final Thoughts: Which Segment is Right for You?
Buyers:
- Choose existing homes for more affordability, faster move-in, and quicker decision timelines.
- Opt for new construction if you’re seeking modern finishes, newer systems, and the peace of mind that comes with a brand-new home—especially if you’re not in a rush.
Sellers:
- Existing homeowners currently hold a strong advantage with faster sales and high closing ratios.
- Builders can still do well, but should focus on competitive pricing and marketing to stand out in a more neutral market.
Understanding these contrasts helps you position yourself for success in 2025. Whether you’re buying or selling, knowing how these segments behave can guide your next steps with confidence.
For personalized advice or support navigating the Tri-Cities real estate market, contact ryan@kenmoreteam.com or call 509.987.4544. Our team is ready to help you make your move.
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