It sold for how much? Study shows how high Whatcom homes went above listing prices in 2021
Selling a home above the listing price was a common occurrence in Whatcom County last year, so much so it landed this area on another list.
A study by Porch.com found that homes sold in the Bellingham metro area (Whatcom County) went for an average of 2.8% above the asking price in 2021. That’s the sixth highest total among small metro areas across the U.S. The study also estimated that 51.9% of Whatcom homes sold above list price last year, while nearly three-quarters of Whatcom homes had a signed agreement in under two weeks.
The study used data from Redfin to come up with its rankings.
Even with interest rates rising, the trend hasn’t slowed down in the first quarter of 2022. Using Northwest Multiple Listing Service data, local appraiser Braden Gustafson found that in February and most of March home sales were going for around 107% of the list price in Bellingham.
During a one-week period in March, Gustafson noticed that out of 18 home sales in Bellingham, only one sold for under the asking price. However 78% sold for at least $50,000 above the asking price and 28% sold for over $100,000 above the asking price.
“I expect continued intense demand in the short term and bidding wars, but affordability is becoming a major issue that will affect demand,” Gustafson said in an email.
With interest rates rising, potential homebuyers who take out mortgages end up with fewer choices. For example, a buyer who could afford a $600,000 house at 3% interest a year ago could probably only afford a $500,000 house at 4.5%, Gustafson said.
Even with that being the case, Whatcom home prices are regularly going above listing prices in the first part of 2022 because inventory still is so low that plenty of qualified buyers remain. Inventory could increase later this year, but Gustafson doesn’t see interest rates going back down soon.
The Porch.com list of small metros selling the highest above the original asking price is dominated by Washington communities. Along with Bellingham being sixth highest, Bremerton ranked second, Olympia fourth and Mount Vernon ninth. Santa Cruz, California, topped the list with homes selling at an average of 4.6% above the listing price.
This story was originally published April 1, 2022 at 5:00 AM.
