Tri-Cities Luxury Market on Record Pace…With a Big Asterisk

Much like the Tri-Cities market overall, luxury home sales in the Tri-Cities are ahead of last year’s pace. If it continues through the rest of 2026, it’ll be the third straight year with a luxury sales record.

In the first half of 2026, there were 51 home sales at or above $1 million across the Tri-Cities. Over the same period last year, there were 43 million-dollar home sales.

That’s a 19% gain in the first six months year-over-year. It puts us on pace for 102 luxury sales, which would shatter last year’s record of 85. We also set a record with 61 luxury sales in 2024.

The luxury market is also seeing a modest rise in prices that’s similar to the market as a whole. This year’s 51 sales have a median price of $1,175,000, up 2% from the first half of last year. As I mentioned in our mid-year market update a few days ago, overall home prices are up 1.6% so far this year compared to 2025.

But There’s an Asterisk: Signs of a Soft Market

While the overall numbers look strong, there are some underlying trends that suggest the luxury market isn’t soaring across the board.

1. Days on Market are down

Luxury homes are selling after 36 days on market so far this year — 33% slower than a year ago. In Kennewick, luxury homes are taking almost three times longer to sell this year than 2025. West Richland’s drop from 23 to 104 median days is even bigger, but with just three luxury sales, it’s too small of a sample to call it a trend.

2. One city is driving this year’s gains

I’m looking at you, Richland. One-third of all luxury home sales in the first half of 2026 were in Richland. Luxury sales there have more than doubled so far this year. In fact, if you take away Richland’s 9-sale rise, the overall luxury market would be behind last year’s sales pace.

Richland also drove the increase in median sales price, rising more than $100,000 compared to last year.

3. Price drops are common

Not shown above, but something I found in the data:

• Of the 51 luxury homes sold so far this year, 34 had at least one price reduction — that’s 2 of every 3 sales
• When we ran these numbers last week, there were 72 available homes priced at $1 million or more, and 28 already had a price drop

What It All Means for Luxury Buyers and Sellers

The first half of 2026 showed clear growth in the Tri-Cities luxury housing market — and we may be on pace for more record growth, even. But this isn’t area-wide growth. It’s primarily happening in Richland, with solid activity in Pasco.

The best way to describe the Tri-Cities luxury market right now is active but price-sensitive. More luxury homes are selling, but buyers are also being selective. They’re not opening their wallets for homes that are overpriced.

So if you’re a luxury homeowner, pricing strategy really matters. Start too high and you’re likely looking at longer market times, price reductions, and a weaker negotiating position down the road.

As always, if you have questions about the Tri-Cities luxury market — or questions about buying or selling a luxury home — drop me a note any time.

-Cari