Tri-cities Washington real estate is—and has been—a solid investment for home buyers and the market is remarkably stable. A $200,000 home in the tri-cities area five years ago is worth around $70,000 today. However, some potential buyers are eyeing more dramatic real estate value increases in other cities like Seattle and Boise, which have risen by 60-70% in as many years. We’ll explain the current state of the market here in Washington, and why homes huge value surges are not necessarily wise investments.
Medium Home Prices in Tri-Cities Washington
In the tri-cities region home prices are averaging around $268,000, which is a 5 percent annual increase since 2010 when the average home cost around $196,000. However, this past July saw a sharp temporary spike in average home to an astonishing $312,000 compared prices from July 2017. This is likely due to the fact that most buyers want to move in summer, so asking prices tend to escalate.
While home values in the region may only be moderately rising compared to other Northwest cities, they are still above the national average at a 6.5% and a ranking of number 15 out of 22 neighboring Northwest markets for annual appreciation. So, why you may ask, is this a good thing? After all, most homeowners view skyrocketing values as a plus—until property tax time, that is.
Why Current Market Trends in the Tri-Cities is Favorable for Buyers and Owners
Many of you might remember the recession of 2008 when the real estate market literally plummeted. In cities such as Portland, Seattle and Vancouver appreciated extremely rapidly—70% or more—and homeowners began treating their homes like it was a stock market investment. Too many owners took out loans and second mortgages to reap the benefits of increased value, which was a major cause of the housing bubble bust as it’s known.
Slow appreciation prevents housing bubbles and sub-prime mortgage crises that can put certain homeowners at risk for foreclosure and even bankruptcy. Stable housing markets also make the area more appealing for new business to set up shop locally, making the economy stronger. For these reasons, housing experts claim that slow and steady provides the greatest security concerning real estate property values and market trends.