This week, we’re looking back at the week of August 17-21 to analyze the residential real estate market in the Tri-Cities and surrounding areas. As always, keep in mind that these numbers are rounded averages and won’t be 100% exact, but they do give a great snapshot of the current market. All data was collected on the MLS (multiple listing service) for the Tri-City associations.
Last week, there was an average of 535 residential properties listed for sale. 225 of those were new construction. The median days on market was 42 days. The average price was $394,950, with new construction coming in higher at $418,312.
What do these numbers mean? There were only a scarce 535 properties for sale on average last week, and over a third of those are properties that have either not been built, are under construction or recently finished. That leaves just 310 homes on the market ready to move into. Which, with a population of over 300,000 people in the growing Tri-Cities area, is extremely small. As for new construction, rising lumber costs are driving the listing prices up in a trend that builders expect to see well into next year.
There was an average of 1002 properties pending sale, with 398 of those being new construction. The average median days on market for those were 6. The average price of pending properties was $328,700.
What do these numbers mean? Again, over a third of the properties pending sale are new construction. The properties pending sale were only on the market for an average of 6 days. This shows that, for the most part, the houses that are selling are selling insanely fast. The home that you or your buyers viewed yesterday has a good chance of being gone by the time you decide to submit your offer, so you have to act fast. For sellers, this means that you won’t have to wait long for your home to sell – it’s often a matter of days, if you’re priced right. As you can see, there is a large difference between the average pending price and the average listed price, meaning that the homes that are selling are priced more competitively. Hence, less-than-a-week average days on the market.
As for sold properties, a total of 85 properties sold last week, with 22 of them being new construction. The average price of existing construction sold was $345,679, while the average price of new construction sold was $343,491.
What do these numbers mean? When we look at properties that sold, compared to our other metrics, new construction covered just about 25% of the market. Averages, of course, don’t tell the whole story, and outliers have a tendency to skew the values. Average pricing of existing construction surpassed the price of new construction. In this case, an existing residential home was sold last week for a whopping $1.3 million, which caused our existing sold numbers to be higher than our new construction numbers for the week.
So, what does all of this mean for you?
As a seller, there has never been a better time to sell than now. Homes are spending less than a week on the market, meaning that you likely won’t be stuck waiting months to sell your home. Pricing has remained mostly consistent for the past several months, giving you the security to know that you will get the optimal price for your home. Are you considering selling? If so, make an appointment today with our listing specialist for a free consultation and market valuation report on your home!
As a buyer, things get trickier. With so few homes on the market, you may have to look longer and harder to find the perfect home, so be ready! In a market like this, choosing the right agent is crucial and getting pre-approved is highly recommended. With new construction making up so much of the market, you may have a great opportunity to purchase a brand new or under-construction home. Our agents are experienced, knowledgeable and eager to help you find your new home, so if you’re thinking of buying, contact us today!