If there’s one word that best describes the Tri-Cities housing market as we begin the year, it’s this: rebalancing. It’s not reversing. Not collapsing. Not even cooling off in the way many people assume. Instead, the market is doing something we haven’t seen consistently since before the pandemic. Inventory is rebuilding, and with it, the conditions for a healthier, more functional housing market are beginning to reappear. 

In December, active inventory rose 15.8% compared to last year. It was a meaningful gain, and it matters because inventory is the housing market’s oxygen and increases choice.  

When choices increase, buyers step back into the market and sellers gain confidence. That’s when the market stops feeling like a tug-of-war and starts behaving in a more balanced way. 

But it’s important to keep the growth in perspective. It would have taken 94 more listings in December to return to the Tri-Cities’ 2019 pre-pandemic level. That’s not a massive gap. But it’s a reminder that while things are improving, we’re still operating with a supply shortage. 

Another key trend is the shape of last year. Active inventory peaked in June and declined every month afterward. That tells us two things: 

1. Seasonality is back. The market is behaving more traditionally again, with spring and early summer acting as the high-water mark for listings. 
2. Inventory is still fragile. Even though supply is rising year-over-year, it’s not yet strong enough to hold steady through the second half of the year. 

In a truly balanced market, inventory doesn’t evaporate in the back half of the calendar. It levels out. 

The most important story in today’s inventory numbers isn’t only how much supply we have. It’s where that supply is building. 

Here’s the current breakdown of active listings by price segment: 

Market Segment Dec 2025 Dec 2024 Change 

Affordable ($160K–$299,999) 

831 791 +40 

Move-Up ($300K–$499,999) 

815 694 +121 

Luxury ($500K+) 

559 392 +167 

What stands out is the biggest growth is happening above the entry-level tier. 

That’s a major structural signal. Is says the Tri-Cities is gradually transitioning from a market defined by scarcity where almost anything listed would sell quickly into a market where: 

• buyers have more leverage 
• sellers must compete more on price, condition, and presentation 
• homes that are overpriced will sit longer 
• pricing becomes more disciplined and realistic 

Even with inventory rising, the Tri-Cities remains under-supplied. Right now, the market has 3.76 months of inventory. To put that in context 3.76 months is still a seller-leaning market while 5.5 to 6.5 months is needed for a balanced market. So while we’re moving in the right direction, we’re still not operating with enough supply to create broad, stable balance across the region. 

It’s also true that some price bands and some communities are closer to balance than the overall market average. That’s why the Tri-Cities doesn’t feel like one market anymore. 

For much of the past few years, the biggest force limiting resale supply has been the lock-in effect. It’s made up of homeowners holding onto ultra-low mortgage rates and choosing not to move. 

That effect is still here, but it’s weakening. And the reason is simple: life doesn’t pause forever. Even homeowners with great rates eventually face life-changing events: 

• job changes and relocations 
• marriage, divorce, and household reshuffling 
• growing families needing more space 
• retirees downsizing 
• estate transitions 
• health-driven moves 

Those events are beginning to bring more homes back to market, gradually restoring inventory flow. 

It’s also important to remember a uniquely stabilizing factor in our region. Close to half of Tri-Cities homes are mortgage-free. That means a significant portion of owners aren’t trapped by rate shock. They have flexibility, and that flexibility can translate into listings when the timing is right. 

This year’s outlook is for a market that’s more workable for everyone. The expectation is: 

• increasing inventory 
• higher transaction volume 
• more stable and moderate price growth 

That’s good for buyers. It’s good for sellers. And it’s good for the long-term strength of the Tri-Cities housing market.