Whatcom County home prices hit new highs as inventory remains a big challenge
While there are potential signs of softening, the current story for Whatcom County’s real estate market is still the same: Very little inventory, plenty of buyers and rising prices.
The median price for Whatcom County houses sold during the third quarter was $556,000, a 23.6% increase compared to a year ago, according to the latest real estate report by Troy Muljat of Muljat Group Realtors. Muljat’s report is based on data from the Northwest Multiple Listing Service. In Bellingham, the median price for homes sold from July through September was $645,000.
Nearly all the Whatcom County communities posted double-digit price increases in the median price compared to the third quarter of 2020. Lynden had the second-biggest jump in the county, with the median price pegged at $580,000, up 31.2% year-over-year. The Sudden Valley market was also very hot, with the median price rising 31.5% to $526,000. An average listing was only on the market for nine days in Sudden Valley.
Once again, low inventory is once again creating an atmosphere where offering above the list price is the norm. The average Whatcom County listing took only 21 days to sell in the third quarter, the lowest level in recent memory, Muljat said. For a house that’s reasonably priced and in good shape, it is usually on the market one to five days, he said in a telephone interview.
The large number of new apartment and student housing units that are ready in Whatcom County doesn’t appear to be putting a dent in the housing market demand. Muljat said there are so many people who would like to buy but can’t find a place, so they are staying in rentals while people continue to move to the area. Large facilities that recently opened include the Stateside buildings that are focused on student housing, a new residence hall at Western Washington University and a new apartment building in Barkley.
The signs that the market could soften? There was a slight increase in inventory, Muljat said, adding that he is also hearing there might be more plans to build houses as lumber prices come down. Recent Federal Reserve policy announcements about tapering its fixed asset purchases suggest mortgage interest rates could start to rise in the coming months, which could slow down demand.
For the local market, Muljat expects to see a return to some seasonal patterns this fall. That means the rest of October through mid-November should be busy, with activity slowing down significantly during the holidays through February.
