Tri-Cities Luxury Market 2025: Key Records
A record 85 luxury homes sold across the Tri-Cities market in 2025.
This set a new high for the second consecutive year.
Press releases dated February 16, 2026, citing the Cari McGee Real Estate Team, reported a 39% jump from 2024.
The average price for these luxury sales was $1,272,783, with homes spending about 70 days on market.
Even as year-over-year inventory growth has risen in comparable high-demand markets, buyer competition can remain intense and keep prices elevated.
Records reshaping buyer expectations
Kennewick led with 34 million dollar closings.
It also captured six of the top 10 most expensive sales.
Outlying communities including Prosser, Benton City, Finley, Burbank, and Connell contributed to the historic total.
This activity spanned four core cities.
Design and location signals
Architectural trends favored newer builds.
This was shaped by elevated construction costs and pandemic era price resets.
Neighborhood rankings tightened as inventory peaked at 1,138 active listings in September 2025.
It then ended at 938, reinforcing a shift toward more balanced conditions.
Tri-Cities Luxury Sales Volume and Prices (2025)
Record-setting closings in 2025 reset the baseline for what qualifies as a luxury outcome across the Tri-Cities.
Disruptive sales volume signals
Eighty-five million-dollar homes sold in 2025, a second straight year at the 85-unit mark.
That total was 39% higher than 2024, underscoring sustained upper-tier demand despite shifting financing trends.
Kennewick led with 34 of 85 sales, concentrating six of the 10 priciest transactions.
Price benchmarks tighten valuation risk
The average luxury sale reached $1,272,783, far above the October 2025 regional median of $438,742.
Year-to-date average sold price for all homes was $480,260 as of September, supporting higher comps but raising appraisal impacts for buyers using leverage.
Luxury listings averaged 70 days on market, allowing measured negotiations around list prices.
Inventory rose toward balance.
Across luxury markets, buyer expectations are increasingly shaped by smart home technology becoming an essential feature at the high end.
Tri-Cities Luxury Price Dip: Mix Shift Explained
Although 2025 posted the highest luxury sales count, the Tri-Cities average sold price slipped to about $1.35 million from $1.41 million in 2024.
Mix Shift Disruption
More deals clustered in the $1.0 to $1.5 million band, trimming fewer trophy extremes.
Average finished size fell to about 4,800 square feet from 5,060, while price per finished square foot edged up to $281.
What the mix suggests
- Architectural trends favored smaller, sharper layouts that still read premium.
- Renovation priorities shifted toward high-impact kitchens and energy systems over added square footage.
- Liquidity remained strongest where buyer depth was widest.
Negotiation Compression
Median days on market dropped to 60, and sold-to-original-list ratios rose above 94%.
The price dip therefore reflected composition, not broad discounting across luxury listings overall.
What Drove Tri-Cities Luxury Demand in 2025?
As pandemic-era price gains held, Tri-Cities luxury demand in 2025 drew strength from sustained valuations, rising construction costs, and inbound buyers from higher priced metro areas.
Pressure From Costs and Limited New Supply
Building expenses remained elevated, pushing new construction into upper price ranges.
Renovations penciled only at luxury price points, tightening supply for entry-level homes.
Average sold price climbed from $464,069 in 2024 to $480,260 in 2025, reinforcing luxury benchmarks regionwide.
Remote Work and Relocation Shock
Arrivals from coastal and major metros carried purchasing power shaped by higher home prices.
Remote Work made location flexible, while Lifestyle Amenities and a resilient local economy sustained confidence.
Inventory rose from 758 listings in January to 1,140 in September, expanding options without flooding the luxury tier.
What Tri-Cities Luxury Means for 2026 Buyers
Tri-Cities luxury buyers entering 2026 face a market that moved faster in 2025 and left less room for hesitation.
Median days on market fell to 60, while sold-to-list climbed above 94%.
Faster Absorption Raises Execution Risk
Decisive wins concentrated in the $1.0 to $1.5 million tier, where buyer depth was widest.
Average pricing eased to $1.35 million as mid-range luxury dominated.
2026 Buyer Focus Points
- Tighten inspection priorities around 2007-era systems and deferred maintenance.
- Test lifestyle fit against county-specific commuting and school patterns.
- Prepare offers that reflect narrower negotiation bands.
New Construction Disrupts Comparables
More brand-new inventory adds options and pressures existing homes to present like new.
Equity-rich sellers may hold firm on price.
Washington and Sullivan activity remains structurally anchored, supporting long-term stability.
Assessment
Tri-Cities closed 85 million-dollar transactions in 2025, setting a new luxury sales record.
Pricing softened as the mix shifted toward lower tier luxury and fewer ultra-high-end closings.
Demand held firm, reflecting constrained inventory, relocation activity, and high-income household resilience.
The market entered 2026 with heightened sensitivity to rate volatility, appraisal gaps, and limited new supply.
Luxury outcomes are expected to hinge on inventory replenishment and the pace of high-end listings.
