July 2025 Real Estate Market Update: Sales & Inventory Both Rising

Summer 2025 looks a lot like Summer 2024 when it comes to the Tri-Cities housing market. Just like a year ago at this time, more homes are coming to market, more homes are selling, and home prices are down just a bit.

The only difference is that activity levels are higher this year than last, so let’s take a look at what that means below.

Active Homes for Sale (aka Inventory)

If you read last month’s market update, you know that the number of homes for sale reached a level we haven’t seen since November 2014. Well, we have more homes on the market this month, and we’ve now reached a level not seen since a month earlier — October 2014.

Across the six cities we track, there were 1,142 homes for sale as of July 8. That’s a pretty big jump of 14% compared to a month ago. It’s also 35% more homes for sale than we had a year ago. That could be cause for concern, but as you’ll see below, home sales are also up and the extra inventory isn’t having a negative impact on home prices.

One more note: We’ve been tracking our own market stats since November 2018, and our four biggest cities — Kennewick, Pasco, Richland, and West Richland — all have more homes available now than they’ve had since we began. West Richland has more than double the available homes than it had in January (86 vs 42).

Home Sales

You might see some news about how home sales are slowing across the nation, but that’s another good reminder to ignore the national headlines. Every market is different, and home sales are up here in the Tri-Cities.

We had 352 homes close in June, and as you can see on the graphic above, sales were up everywhere but Benton City and Burbank (which both have low volume month in and month out). We haven’t had 352 sales in a single month since August 2022, when there were 363 sales.

Last month’s 352 sales are 10% more than we had back in May, and 9% more than one year ago. This isn’t quite the same pace that inventory is rising, but it’s a good sign that buyers are active.

Home sales are staying at a strong enough pace that our “absorption rate” has remained in the low 3-month range for the past five months. (Absorption rate is how many months it would take for all the available homes to sell at the current rate homes are selling, if no new homes came to market.)

Median Home Prices

Our median sales price last month was $429,900, which is down 1.2% from $434,950 last month.

Even though we have 35% more homes for sale this year than one year ago, home prices are up year-over-year. Our median in June 2024 was $424,900, so we’re up 1.1% compared to a year ago.

There’s nothing noteworthy about home prices in any individual city. The median in each one this month is right in line with how prices have fluctuated over the past 4-5 months.

To sum up: The numbers are bigger, but directionally, the Tri-Cities market is behaving just like it did a year ago. Even as inventory rises to levels we haven’t seen in more than a decade, enough homes are selling that we’re not seeing dramatic price drops.

As always, please get in touch if you have questions about what’s happening around town or in your specific neighborhood. Use the TEXT US tool below to send a text, call us at (509) 392-4705, or contact us via email — whatever’s best for you!

(*Remember that days on market can sometimes be skewed by how new construction homes are processed in the MLS.)