Tri-Cities home prices were at a five-month low in October but sustained both an annual and 10-month gain. Sales dropped 3.5% below where they were last year, and the 10-month trend is .6% higher than last year.  

Some of the market’s lethargy can be attributed to consumer wait-and-see reaction to the presidential elections. There’s also the typical seasonal factors and affordability is still a concern. 

It’s still a little early for a detailed 2025 outlook, but it’s safe to say the local market is relatively stable and the fundamentals are in place for another positive year.  

Currently, mortgage rates are increasing while the FED’s benchmark interest rates have declined. The average for a 30-year, fixed-rate mortgage last week was 6.79%. It was the sixth straight weekly increase. It’s a wait-and-see game to see how sensitive consumers are to these changes. More inventory is being added and that should help, but the magic number some owners are waiting for is in the 5.5% range, according to recent surveys. That is likely wishful thinking. The current outlook for next year is in the average 6% to 6.5% range. 

Key metrics that have been added to the housing market watch list is jobs and average pay. The local jobs situation is – much like the housing market – still growing but the growth rate has slowed. And most of the new jobs are in the lower-paying areas of the service economy.  

The pay metric is a key affordability factor. Although politicians have promised to lower the basic cost-of-living prices that were driven high by inflation, many if not most of higher prices will remain, according to most economists. The recovery from inflation is typically driven by wage increase, not price cuts. 

Here’s a capsule look at how the primary October housing metrics look. 

PRICE 

 October’s median sales price of $265,000 is the lowest it has been since April. The highest, so far this year, was $279,900 in July. The low was $239,000 in January. Since the 2018 pre-pandemic benchmark, the median October price has increased by 87.9%. Currently, the 10-month trend is tracking 3.9% better than last year. 

SALES 

October sales edged slightly higher than September and ended a three-month decline. The 10-month trend is up .6% from where it was this time last year as sales continue their retreat toward the pre-pandemic benchmark. The market is currently averaging 645 sales a month, down from 652 during the first 10 months of last year. The pre-pandemic monthly 10-month average was 614. 

Most sales continue to be in the $200K to $399,999K price range. They accounted for 54% of all sales last month. Sales in the $250K to $299,999 accounted for the largest year-over-year increase – 108 sales up 36.7% last year. 

More owners were sticking to their original listing price last month. The share of discounts was 42%, down from 60% in September. The average discount was $20,610. 

Buyers fared a little better with negotiations to close the deal. Forth-five percent of the sales were for less than the list price. The average discount was $32,691, up from $31,878 in September.  

INVENTORY 

Slower sales have allowed inventory to increase. At month’s end, the region has 3.2 months of inventory. That’s the best it has been since 2020, but still not enough to nudge the market toward balanced conditions. There was 2060 listing in October, 1,403 fewer than the pre-pandemic benchmark. 

The distribution of inventory shows most listings clustered in the $200K to $399,999K price range. The price range with the most listing last was $500,000 and up.  

There were 889 new listings last month, up 4.2% from last year. The 10-month trend is up 6.2%.  

Listings in the $300K to $399,999 accounted for the most new listings and accounted for 20% of all new listing last month. 

New listings are typically slow during the last months of the year. Most hit the market during the first and second months of the new year.