It’s good to see this month’s market data reflecting what I’m seeing out on the streets. I was telling a buyer recently that multiple offer situations are still very common, but we’re starting to see fewer offers.
Why is that happening? For a couple reasons, probably:
- Rising interest rates are likely keeping some buyers on the sidelines. Fewer buyers = fewer offers.
- Inventory is rising slowly across the Tri-Cities. More available homes = fewer offers.
Let’s talk about point #2.
Inventory Up 3 Consecutive Months
Inventory isn’t rising quickly, but it is rising. With 335 homes available when we did our market snapshot last week, inventory has now gone up for three straight months. And get this: Inventory is more than double what it was one year ago. May 2021 was our low watermark, with only 163 homes available.
Another good sign: The inventory mix is almost 50/50 between new construction and existing homes. Of the 335 available homes, 170 are new construction and the other 165 are existing homes. In recent months, it’s been closer to two-thirds new and one-third existing.
Kennewick, Pasco, and West Richland all have more homes available this month than they’ve had since December/January. There’s an interesting thing happening in Kennewick this month: Inventory is looking pretty good (relatively speaking) in the lower price ranges. Of those 99 homes for sale last week, 31 were below $400K and 8 were below $300K. Both of those numbers are more than the rest of the Tri-Cities combined!
Speaking of home prices…
Home Prices Holding Steady
Overall, our median home price went up by about $3,600 last month. We’re about $10K below the record set two months ago. Year over year, our median is up 23%.
Median prices in Kennewick and Pasco have dropped for two straight months. Pasco’s median price was $490K just two months ago, and is down to about $412K now. Meanwhile, prices are going up in both Richland and West Richland. Richland prices have risen two straight months, and West Richland has gone up three months in a row. The median price in West Richland ($576,925) is the highest any individual city has ever seen, and that’s happened now two months in a row.
As always, please drop us a note if you ever have questions about the housing market here in the Tri-Cities, or even in your specific neighborhood/town/city.
(*Remember that days on market can sometimes be skewed by how new construction homes are processed in the MLS.)