Home appreciation posted this huge one-year jump across Whatcom County in 2021
The hot home buying market in Whatcom County last year has translated into a huge boost in overall home appreciation.
A new study from the Federal Housing Finance Agency estimates that home values appreciated 21.9% in 2021 compared to the previous year in the Bellingham metro area, which is Whatcom County. For a home that was valued at $400,000 at the end of 2020, that’s a jump of $87,600.
It was one of the biggest one-year jumps in recent years for Whatcom County, but was just outside the top 50 nationally, according to the report. Bellingham ranked 56th out of 268 metro areas. Many of the Washington state metro areas posted increases of more than 20%, including Mt. Vernon (up 22.1% year-over-year) and Tacoma (up 21.4%). Seattle came in with a 19.2% increase.
The report is based on an index that focuses on purchased and refinanced mortgages. Across the U.S., home values rose 17.5% year-over-year. The metro area with the biggest increase was Fort Meyers, Fla., which had home appreciation values rise 34.6%.
With homes costing a premium in the Bellingham area and interest rates expected to rise, things could slow down, but not by much, said Braden Gustafson, a local appraiser.
“I anticipate home prices to increase in 2022, but by less than last year,” Gustafson said in an email.
One reason Gustafson expects home prices to keep on rising is that new listings remain weak heading into the spring, typically a busy time for home sales.
“There is no way we can get enough new listings to satisfy demand this spring. It will take a long time to get inventory back up to healthy levels,” Gustafson said.
Low inventory hasn’t slowed down demand. In February, 70% of sales were going for over the asking price. Around 40% of sales were going for more than $50,000 over and 20% of sales were at least $100,00 over the listing price, Gustafson said.
That demand is not coming from buyers who are making the median household income. An analysis done by Gustafson’s firm indicates that the typical homebuyer can only afford 20% of the homes in the Whatcom County market. A year ago a typical homebuyer could afford 40% of the housing units listed in Whatcom County.
This story was originally published March 1, 2022 at 5:00 AM.
