Pandemic unable to trip up Whatcom County’s real estate market in 2020
While the COVID-19 pandemic has disrupted most of the local economy, it was unable to slow down Whatcom County’s real estate market in 2020.
The median price for homes sold in Whatcom County jumped 10.5% to $442,000 last year, according to a new report put together by Troy Muljat, managing broker of Bellingham-based Muljat Group Realtors. The report is based on data from the Northwest Multiple Listing Service.
It is the third double-digit percentage increase in the past five years, an indication the market remains overheated in sellers’ favor.
According to Muljat, Whatcom’s median price has risen a whopping $200,000 since the last time there was a yearly decline in 2011. While that’s quite a windfall for sellers, it also shows just how difficult it is to find and buy a home.
“The market continues to be in a housing crisis mode,” Muljat said.
Inventory is especially low in Bellingham, and that is really driving up prices. Muljat’s report estimates Bellingham’s median price for houses sold was $523,500. That’s $13,500 above the median asking price, an indication that buyers had to routinely pay above the asking price to close the deal.
Bellingham government data indicates that residential construction is happening, but it is very much tilted toward apartments and other multifamily buildings. A new development dashboard put together by the city shows that 916 multifamily units and 144 single-family homes are currently under construction. The numbers are similar in terms of projects submitted to the city but not yet approved: 881 multifamily units and 106 single-family homes are under review.
Last year Bellingham issued 119 permits for single-family homes, the lowest annual total since 2012. The peak year for single-family home permits in the past decade was in 2017, when 219 were issued.
Why does Whatcom County remain in this sellers’ market? Muljat said there are three factors driving up prices: Along with very low inventory, Whatcom County continues to have people moving to this area during the pandemic at a time when mortgage rates are at around 2.5% for a 30-year loan.
Most of Whatcom’s smaller communities also posted double-digit median price increases, including Sudden Valley (up 14.3%), Ferndale (13.9%), Nooksack Valley (13.5%), Mount Baker (13.3%), Birch Bay/Blaine (12.5%) and Lynden (12.1%).
The low inventory also means home sale totals are stagnant. Home sales rose only 1% to 3,060 in 2020. However, that also meant quicker sales as the average time on the market for a house dropped 19.6% to just 37 days.
Muljat said in a telephone interview that he expects 2021 to be a similar situation of low inventory and another double-digit percentage gain in the median price of homes sold.
There could be a few more homes put on the market in 2021 if the COVID-19 virus is controlled and homeowners who postponed moving plans during the pandemic decide to move. However, the lack of new construction in Bellingham will keep inventory low.
This story was originally published January 5, 2021 at 12:47 PM.
