It’s a new year, but January didn’t bring much new to the Tri-Cities real estate market. Inventory dropped a bit, home prices rose a bit, and to no one’s surprise, sales activity slowed down. In fact, there are some interesting similarities to our market update from exactly a year ago. More on that as we dive deeper into the numbers!
We only had 190 closings last month across the Tri-Cities. That’s down 11% month-over-month and is the slowest month we’ve had since…January 2023! A year ago at this time, only 175 homes sold. This is normal for this time of year.
Kennewick was the only one of the Tri-Cities to see the number of home sales go up. The overall decline was driven mostly by Richland, where sales dropped from 66 in December to just 46 last month — a 30% decline.
It’s also normal for homes to take longer to sell during winter. Our median days-on-market last month was 40. A year ago, it was 36. We’re now in a streak of five straight months with homes taking longer to sell.
Last month’s sales had a median price of $415,000, which is almost $16K higher than December. But it’s almost exactly the same as a year ago. In January 2023, the median sales price was $414,600. Prices were up substantially in both Kennewick and Richland. That’s a good sign for Kennewick homeowners, especially — home prices there had dropped four months in a row.
We’ll keep an eye on West Richland, where the median price dipped to $371,500 — the lowest there since January 2021.
Our inventory of homes for sale fell for the third straight month. But with closings down by 11%, the 4% decline in homes for sale isn’t as noticeable. In fact, we now have 3.8 months of inventory, which is even better than the 3.5 months we had one year ago. We have 19% more homes for sale this month than we had in February 2023.
Pasco was the only Tri-City to see inventory go up this month.
So overall, a pretty typical start to the 2024 housing market. Home prices are pretty much exactly where they were a year ago, while inventory is up almost 20% compared to this time last year.
And that’s a look at this month’s Tri-Cities housing market! As always, please drop us a note if you ever have questions about what’s happening around town or in your specific neighborhood.
(*Remember that days on market can sometimes be skewed by how new construction homes are processed in the MLS.)