More homes are now available in Whatcom County, but it’s still very tough for buyers
Higher interest rates have slowed down sales of homes in Whatcom County, but, for now, prices continue to hit all-time highs.
The median price for homes sold in Whatcom County jumped 19.1% in the second quarter to $649,000, according to a new report from Troy Muljat of Bellingham-based Muljat Group Realtors. Muljat prepares a report each quarter based on data from the Northwest Multiple Listing Service.
While sale prices were up, home sales in the second quarter were down 11.9%. The total number of homes sold during that period was 825, a seven-year low for the quarter, according to the report.
While an increase of high-end home sales is having an influence, home sales prices continue to rise for just about all levels. Local real estate appraiser Braden Gustafson recently noted that the price per square foot of Whatcom County homes sold in June was up 14.4% compared to a year ago, to $350.
The drop in sales is corresponding with a sharp rise in interest rates. A 30-year fixed mortgage began the second quarter around 4.7% and was up to 5.7% by the end of June. At the beginning of 2022, the interest rate was around 3.1%.
This slowdown in sales is finally starting to increase inventory for potential buyers. Muljat said Whatcom’s inventory is now up to around two months; many months in the past year it was less than 30 days.
“That gives buyers more choices than when the supply was at a month or less, but it’s still below the 4-6 months that a balanced housing market would show,” Muljat said in a news release accompanying the data.
According to data from Gustafson, the last time Whatcom County’s inventory was in that 4-6 month range was in September 2015. Being below 4-6 months’ inventory will keep prices up.
“The rest of the summer we will see fewer bidding wars, but there will still be plenty of demand to eat up the new inventory,” Gustafson said in an email.
While inventory is increasing, how long a house is on the market remains low. The average number of days on the market for a Whatcom County home in the second quarter was only 16, down 36% from a year ago. The areas with the quickest sales were Sudden Valley (7 days) and Bellingham (10), according to the report.
The report did show a couple of communities bucking the trend in terms of homes sales in the second quarter. While most saw significant declines, Lynden and Nooksack Valley saw home sales increase 19.4% and 17.9% respectively.
Bellingham continued to be the community with the highest median and average prices during the second quarter. The median, or midpoint, sales price for homes sold in Bellingham was $785,000, while the average price was $900,038. No other Whatcom community had an average sales price above $665,000, an indication that the high-end homes selling in Whatcom County during the second quarter were mostly in Bellingham.
