Summary

July’s Tri-Cities housing market showed some seasonal softening in July. Sales were flat and prices were down from June’s peak. Remove the seasonality, and a more precise picture emerges. Prices are 1.05% higher than last year and sales are up 5.9%. Inventory and new listings show meager improvements, and the time a home is on the market before selling has also improved. Overall, it remains a sellers’ market with a growth pattern slightly below its pre-pandemic benchmark.

By DON FENLEY

The local housing market enters the second half of 2026 on solid footing. The forces that shaped that month are likely to carry into the fall. None of them points to a sharp turn in either direction. For now, the most likely path is more of the same. That means steady demand, firm mid-market sales, and a tight low end.

Rates set the near-term tone

Mortgage rates are the biggest short-term swing factor. The July average of 6.49% sat below last year’s 6.72%. That small drop was enough to lift sales in the rate-sensitive ranges. If rates hold near current levels or ease further, entry level and mid-market demand should stay firm. If they climb again, those same buyers would feel it first. The affordable market would likely cool before the move-up or luxury ranges.

The affordable market led July gains

The affordable market showed the biggest year-over-year increase of the three segments. Lower rates matter most to buyers in this range. The gain suggests these buyers stepped back into the market as costs edged down. It also points to healthy demand at the entry point of the move-up ladder.

The move-up market grew steadily

The move-up market covers the widest span of prices and the largest share of sales. It grew at a slower pace than the affordable market. Even so, it added sales over last July. Steady growth here shows move-up buyers stayed active. Many of these buyers sell one home to buy another, so their activity keeps the whole market moving.

Luxury sales held steady

Luxury sales matched last July’s total. Buyers at the top of the market depend less on mortgage rates. Some pay cash or borrow a smaller share of the price. Their steady numbers show the high-end moves on its own set of drivers. here.

Buyers focused on the middle of the market

Most of July’s activity landed in a narrow band of prices. Five price ranges carried more than three-quarters of all sales. The busiest ranges sat between $200,000 and $400,000. This is the core of the Tri-Cities market. It is where most buyers and most homes for sale meet.

The market’s center shifted higher

The mix of sales moved up the price scale over the past year. Most affordable ranges gained sales. The lowest-priced homes lost ground. Fewer homes sold below $100,000 this July than last. This shift is not a sign of weak demand at the low end. It reflects rising prices that push homes into higher ranges. It also reflects a short supply of the least expensive homes. Buyers who want a lower-priced home have fewer to choose from.

Categories: REAL ESTATE