House prices are rising in Tri-Cities. Check costs in your area with our interactive map
For the first time in over 10 years, the United States has witnessed a nationwide decrease in year-over-year median home prices, but the opposite has been seen in Tri-Cities.
A study from the National Association of Realtors found that the median price for all types of existing homes fell by 0.2% in February 2023 compared with February 2022 to a median price of $363,000.
The last time the U.S. saw a year-to-year decrease was from June 2011 to June 2012.
“Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines,” National Association of Realtors chief economist Lawrence Yun stated in a news release. “Moreover, we’re seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs.”
The Tri-Cities, and all of Benton and Franklin counties, are behind the national curve in price decreases.
ZIP codes including Kennewick, Pasco and Richland have seen a 3.8% increase in median home value over the past year.
As a result, home prices for the same Columbia Basin-area ZIP codes remain well above the national average.
As of February 2023, the median home value for the corresponding ZIP codes was $419,800 — a $56,800, or 15.6%, increase.
Across the western U.S., home values have decreased on average by 5.6%. The same data also shows that existing-home sales have reduced across the west by 28.3% in the last year.
According to data from Zillow, ZIP code 99353 — which mostly includes West Richland — saw the smallest yearly increase at 2.5%. The median price for the same ZIP code remains higher than the Tri-Cities average at $470,384.
ZIP code 98506 in Burbank, Wallula Junction, Ash and Le Grow saw the largest increase at 4.88%. The median price is $433,143, above the national and Benton and Franklin counties averages.
According to data from the National Association of Realtors, housing markets in the western U.S. are primarily responsible for the year-over-year decrease. Home values in the Midwest and South have increased over the past year, while houses in the Northeast and West have decreased.
Figures from the Tri-City Association of Realtors in February 2023 showed an average home price of $452,100, about 2.6% lower than in 2022. This is around 42% higher than the February 2022 average.
At the end of 2022, realtor David Retter of Sothesby International Realty told the Tri-City Herald he anticipated 2023 would be a “steady year” for the local market.
“I think people will get back in the mood to want to (consider buying),” Retter said. “When you look at the demands and the economy, we’re in a similar position to 2008-10 where the rest of the nation was in a recession, but we stayed steady.”