The luxury home market in the Tri-Cities—homes priced over $1,000,000—represents a highly exclusive segment, catering to buyers looking for custom-built properties, premium waterfront locations, and large estates. Unlike lower price brackets, this market operates differently due to a smaller buyer pool, longer sales cycles, and more negotiation flexibility.
This report provides insights into listings, pricing trends, buyer and seller dynamics, and days on market to help both buyers and sellers make informed decisions in this high-end market segment.
1. Market Activity: Changes in Total Listings Over the Past 12 Months
The number of listings for homes priced over $1,000,000 has remained low, making it one of the most exclusive markets in the Tri-Cities.
- Past 12 Months: The total number of luxury home listings has remained steady, but the inventory is naturally low due to fewer homes in this price range.
- Year to Date (2025): The number of new listings has slightly declined, suggesting sellers are waiting for the right market conditions to list their properties.
- Last Full Month (January 2025): There was a small increase in listings, but high-end homes take longer to sell, making market activity slower.
- Current Month (February 2025): Listings remain consistent, but buyer demand continues to be selective and deliberate.
Key Insight:
✔️ Luxury home inventory is limited, and new listings are not increasing significantly.
✔️ Sellers should anticipate a longer listing period as buyers in this price range take their time to decide.
✔️ Buyers have access to exclusive properties, but competition is lower, allowing them to negotiate favorable terms.
2. Pricing Trends: Listing Prices vs. Final Sales Prices
The luxury home market sees larger price gaps between listing prices and final sales prices compared to lower price brackets.
- Past 12 Months: The average and median final sales prices were lower than listing prices, meaning price reductions and seller concessions were common.
- Year to Date (2025): The gap between listing prices and final sales prices has remained steady, suggesting that luxury home buyers are negotiating aggressively.
- Last Full Month (January 2025): Homes in this price range sold below asking price more frequently, reinforcing that sellers must be flexible with pricing.
- Current Month (February 2025): Early data suggests that luxury homes continue to sell below listing price, meaning buyers have strong leverage.
Key Insight:
✔️ Luxury home buyers have significant negotiation power, and sellers should be prepared for price adjustments.
✔️ Sellers need to price strategically, as overpriced luxury homes sit on the market much longer.
✔️ Buyers can request concessions beyond price reductions, such as closing cost assistance, upgrades, or furniture inclusions.
3. Buyer and Seller Scores: Who Holds the Advantage?
Buyer and seller scores indicate who has more power in negotiations in this high-end market.
- Past 12 Months: The buyer score was higher than in any other price range, meaning buyers had strong leverage.
- Year to Date (2025): The buyer score has increased slightly, while the seller score has decreased, showing that luxury home buyers are gaining more control.
- Last Full Month (January 2025): Buyers continued to hold negotiating power, as luxury homes take longer to sell.
- Current Month (February 2025): The buyer score remains strong, with sellers needing to adjust their pricing or offer incentives to attract buyers.
Key Insight:
✔️ Buyers hold the advantage in this market, as there are fewer luxury buyers competing for available properties.
✔️ Sellers should be open to negotiation and creative incentives to secure deals.
✔️ Luxury home pricing must be competitive, as buyers expect strong value for high-end homes.
4. Days on Market: How Fast Are Homes Selling?
The time it takes for homes to sell in this price range provides insights into buyer urgency and demand.
- Past 12 Months: Homes in this range had the longest time on market compared to all other price brackets.
- Year to Date (2025): The days on market have remained consistent, showing that luxury homes require more time to sell.
- Last Full Month (January 2025): Homes in this price range took significantly longer to sell, emphasizing the need for strong marketing strategies.
- Current Month (February 2025): The days on market remain steady, with some sellers adjusting prices to attract serious buyers.
Key Insight:
✔️ Luxury homes take significantly longer to sell, requiring patience from sellers.
✔️ Buyers can afford to be selective and take their time before making a purchase.
✔️ Sellers should focus on high-quality marketing, professional staging, and unique incentives to attract buyers.
5. Analysis & Key Takeaways for Buyers & Sellers
For Buyers:
✅ More Negotiation Power in This Price Range: Buyers have strong leverage to negotiate pricing, closing costs, and property upgrades.
✅ Take Your Time, But Be Ready to Act on Unique Properties: Luxury homes stay on the market longer, but the best properties still attract strong offers.
✅ Expect Price Reductions & Seller Incentives: Many sellers are willing to offer concessions, so buyers should negotiate strategically.
For Sellers:
✅ The Market Favors Buyers in This Price Range: Sellers must be realistic with pricing and prepared for longer listing periods.
✅ Price Competitively to Avoid Sitting on the Market: Overpriced luxury homes may sit for months, while competitively priced homes attract serious buyers.
✅ Consider Offering Incentives: Concessions such as buyer-paid closing costs, luxury furnishings, or upgrades can make a property more attractive.
6. Final Thoughts: A Buyer’s Market with Significant Negotiation Opportunities
The luxury home market over $1,000,000 remains buyer-friendly, with negotiation flexibility, longer days on market, and price reductions common.
🏡 For Buyers – This is an excellent time to purchase high-end homes, as sellers are open to negotiation. Take your time, but be ready to negotiate favorable terms.
🏡 For Sellers – Expect a longer listing period and be open to price adjustments. Offering incentives and strong marketing strategies will help attract luxury buyers.
If you’re looking to buy or sell a home over $1,000,000, these market insights will help you make informed decisions. Now is the time to strategize and maximize your advantage! 🚀