Tri-Cities Home Prices Dropped $15K, But It’s Not Cause for Alarm

If you saw our October 2025 Tri-Cities market update last week, you probably saw that $15,000 drop in median home prices.

And if you’re a local homeowner, that might have raised an eyebrow or two.

But not to worry, for a couple reasons:

1. Since January 2022, Tri-Cities median home prices have stayed between $399,000 and $450,000. Last month’s median of $425,000 is smack dab in the middle of that window we’ve been in for almost four years.
2. When you see a drop of $15,000 in home prices, you might think, “That must’ve been a rough month for sellers.” But a deeper look at the numbers tells a different story.

On that second point, for the 360+ homes that closed in September, here’s a look at their original list price compared to the final sales price:

Tri-Cities overall*

• List price: $427,995
• Sold price: $425,000

Kennewick

• List price: $410,219
• Sold price: $411,747

Pasco

• List price: $429,999
• Sold price: $430,000

Richland

• List price: $435,000
• Sold price: $435,000

West Richland

• List price: $480,000
• Sold price: $473,000

*For “Tri-Cities,” we look at Kennewick, Pasco, Richland, West Richland, Benton City, and Burbank.

The $15K drop in overall home prices isn’t because sellers had to take it in the shorts due to poor demand or whatever. As you can see above, they got pretty much what they were asking.

Overall, homes sold last month at 99.3% of the list price. In Kennewick, homes sold above the list price. In Pasco and Richland, they sold for the list price. West Richland was the exception, where homes sold at 98.5% of list price — which isn’t unusual at all.

The drop is simply because the homes that sold were less expensive than homes that sold the previous month. And that’s probably because the lower mortgage rates we saw in August and September brought buyers into the market that suddenly found their monthly payments more affordable thanks to lower rates.

So I hope that adds a little more explanation to why home prices are down in our latest market report.