Business - Business News

POSTED: Tuesday, Jul. 07, 2009

Whatcom Co. home sales on the rise while prices continue to drop

The pace of home sales in Bellingham and nearby communities appears to be stabilizing, but prices continue to drop, according to two new real estate reports.

The median price of Whatcom County homes sold in the second quarter was down 5.4 percent to $265,000, while the average price was down 11.3 percent to $288,044 compared to the same period last year, according to Lylene Johnson of The Muljat Group. Johnson analyzes statistics from the Northwest Multiple Listing Service.

However, home sales appear to be on the upswing heading into the summer. In June, 214 homes sold in Whatcom County, up from 200 in June 2008, according to the NWMLS. It's the first increase in home sales year over year in any month since February 2008.

Home prices have been dropping because of the overall slowdown, but a significant factor also has been a shift in the overall market, said Gragg Miller of Coldwell Banker Miller-Arnason. Homes in the $350,000-and-below price range are seeing more buyers, while higher-end homes are seeing fewer. He noted inventory for homes priced under $350,000 is around four months, indicating a seller's market for that price range.

"The activity has really picked up in May and June, with June being the best month so far," Miller said. "I still think homes are being listed too high, but there are definitely more people looking again."

After a slow spring, home sales are starting to pick up outside of Bellingham. In June, Sudden Valley, Ferndale and Birch Bay joined Bellingham in increasing year-over-year home sales; in May only Bellingham matched year-over-year numbers.

"In general, home sales are still doing better closer to Bellingham, but now it's starting to spread out," Johnson said.

While the increase in home sales may be heartening for sellers, they need to keep in mind it is still a buyer's market and those buyers are looking for bargains, Johnson said.

"I'm telling sellers they have to be the best in that price range in order to get a sale," Johnson said.

Condominiums are not a part of the recent rise in sales, however. Condo units have been well off the pace this year, which continued in June. Last month 26 units sold, down from 42 in June 2008.

In the coming months activity is expected to remain brisk for homes in the first-time homebuyer price range. One reason is the $8,000 tax credit currently being offered through the American Recovery and Reinvestment Act. Ken Gustafson of Windermere Real Estate said there could be an increase in first-time homebuyers in August and September, because homebuyers need to close on the sale before Dec. 1 to take advantage of the tax credit.

"With the way pending sales are taking longer, it is better to be under contract by the end of September," Gustafson said.

However, the overall economy will play a big factor, Miller said.

"Jobs will continue to be an issue in the next few months," Miller said.

PRICES DROP IN WHATCOM COUNTY

The median sales price, average sales price, number of units sold and average days on the market before a sale for the county and individual communities for the second quarter of 2009, with percentage comparisons to the second quarter of 2008. (Median prices available only for Whatcom County and Bellingham.)

Whatcom County - Median price, $265,000, down 5.4 percent; average price, $288,044, down 11.29 percent; units sold, 515, down 6.9 percent; DOM, 98, down 2 percent.

Bellingham - Median price, $295,000, down 9.9 percent; average price, $326,847, down 13.2 percent; units sold, 257, down 1.5 percent; DOM, 99, up 2.1 percent.

Birch Bay/Blaine - Average price, $241,085, down 12.6 percent; units sold, 47, down 35.6 percent; DOM, 107, down 0.9 percent.

Ferndale - Average price, $280,066, down 7.8 percent; units sold, 73, up 14.1 percent; DOM, 106, up 26.2 percent.

Lynden - Average price, $276,464, down 9.6 percent; units sold, 37, down 27.5 percent; DOM, 144, up 20 percent.

Nooksack Valley - Average price, $240,545, down 12.1 percent; units sold, 22, down 31.3 percent; DOM, 72, down 33.9 percent.

Sudden Valley - Average price, $236,378, down 10.5 percent; units sold, 38, up 31 percent; DOM, 99, up 2.1 percent.

SOURCE: Lylene Johnson of The Muljat Group.