Whatcom home sales plunge amid rising mortgage rates. What that has done to prices
Amid rising mortgage rates, October home sales in Whatcom County were down almost 30% from the same month last year, according to a new report out by the Northwest Multiple Listing Service.
Two hundred and sixty-three condo and home sales closed last month across the county, compared to 367 in October 2021, the report shows.
Sales are also down about 20% from September 2022, when 331 condos and homes sold, according to the report.
The median price of homes sold in Whatcom County last month also dropped slightly, about 2%, from $549,000 in October 2021 to $540,000 in October 2022, according to the report.
The median home price remained largely unchanged from September 2022, dropping from $545,000 to $540,000 in October 2022.
Much of the shift in sales is likely a result of buyers waiting to see if rates and home prices will drop significantly, according to Northwest Multiple Listing Service Director Jeff Pust.
“There is no doubt the market has changed with higher interest rates being the main culprit,” Just said in a news release accompanying the data.
“As for the interest rate ‘elephant in the room,’ the time has come for buyers and sellers to revisit financing methods from previous markets,” said Seattle Berkshire Hathaway HomeServices Signature Properties owner and CFO Gary O’Leyar in the release.
Buyers and sellers in the market now may want to look into options like buydowns, adjustable-rate loans, carrying back second deeds of trust and closing cost allowances, O’Leyar said.
Buyers in need of a home today may need to budget for higher monthly payments until they are able to refinance to a lower rate “a year or two from now when hopefully, rates will begin to go down,” said broker Frank Wilson in the release.
Still, many buyers may need to wait for mortgage rates to stabilize before they can purchase, according to chief economist at Windermere Real Estate, Matthew Gardner.
Overall home prices are unlikely to drop significantly right now, Gardner said in the release, adding that “those who hope to pick up a home on the cheap are likely in for a long wait.”
This story was originally published November 9, 2022 at 5:00 AM.
