How Have Prices Changed?
The Tri-Cities real estate market has been off to a very interesting start this year. With inventory still being the biggest factor with less than 600 homes on the market, we’re seeing an increase in multiple offers with homes priced in the lower price ranges.
When supply is very low and demand is very high, home values are increasing rapidly. One major challenge in such a market is the bank appraisal. This leads to buyers offering above list price and with surging prices, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that recently closed) to defend the selling price when performing the appraisal for the bank. Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). With escalating prices, the second sale might be even more difficult than the first. As comparable homes close, this will help ease up on the low-appraisals.
The chart below shows how prices have grown both county-wide as well as with the cities within our county area. We are comparing year-to-date 2017 with year-to-date numbers for 2016 (comparing January-June for both years):
Area | YTD 2016 | YTD 2017 | Change |
Benton County | $244,510 | $267,562 | +9.4% |
Franklin | $233,737 | $242,925 | +3.9% |
Kennewick | $228,175 | $255,401 | +11.9% |
Pasco | $236,921 | $243,351 | +2.7% |
Richland | $270,675 | $288,177 | +6.5% |
West Richland | $279,225 | $297,119 | +6.4% |
Benton City | $183,268 | $208,386 | +13.7% |
Burbank | $160,400 | $193,115 | +20.4% |
Many new developments are currently being prepared and you should begin to see new homes going up by early fall. When these new neighborhoods are ready, this should help with our listing inventory.
If you are wondering what this market means for your property or would like additional information on what is going on in your neighborhood, please reach out! (509)308-2102
