The Tri-Cities housing market saw a healthy June uptick and increased middle market pressure advanced a sales distribution shift.

Last month’s median sales price was up for the fifth straight month and is at an all-time high of $295,000. At the same time the average sales price dropped by 0.52%.

Pushed by affordability concerns, mid-market buyers have increased the dominance of the $300K to $400K market. Homes in that price range were up 59.7% last month and sales in the $180K to $250K price range accounted for another 18% of sales.

Sales in the luxury market did increase, but they were muted by the more affordable price ranges. The $500K and up high-end market declined by 1.1%.

Sellers also made fewer price reductions. Of the homes that sold, 59% (390) had price reductions, down from 62% in May. The average reduction was also slightly lower – $17,295. Buyers saw the same thing in concessions. The average was $26,172, down from $27,930 in May.

On the other side of the trend, 129 homes sold for an average of $7,343 above the listing price.

While pressure from the market’s middle pushed the median sales price to an all-time high, it also took the edge off average sales price increases. Last month’s average was $327,995, down 0.52% from last year’s average, which was the region’s record high.

June’s sales were their best year-over-year performance so far this year. They are now trending 5% below the pre-pandemic benchmark. Look for the 766 June sales number to increase at the mid-month count when the late closings are added.

June’s solid performance suggests a vibrant summer market, especially for sellers in mid-tier brackets. However, persistent affordability concerns, limited entry-level inventory and  high mortgage rates continue to constrain first-time buyer activity.

NAR’s chief economists Lawrence Yun says if inflation is under control mortgage rates can go down, but the nation’s huge debt will continue to keep rates high. He thinks rates can go down to 6% with Federal Reserve cuts and calmer inflation. 

Zillow expects rates to end the year in the mid-6% range barring unforeseen economic shocks. 

Fannie May’s May Economic and Housing Outlook forecasts rates to end the year at 6.1%. 

The Mortgage Bankers Association predicts the rate to average 6.7% in the third quarter and end the year at 6.6%. 

The June 26 weekly average for a 30-year fixed-rate mortgage was 6.77%.