Whatcom home sales drop as mortgage rates rise. But median prices drop just 2.5%
The rise in mortgage rates “significantly affected” how many Whatcom County homes were sold in 2023’s first quarter compared to 2022, according to a report from Peter Ahn, co-owner of The Muljat Group, a Bellingham real estate company.
From January to March, 423 homes were sold in Whatcom County, a 29.5% decrease compared to last year’s first quarter. Home prices only dropped 2.5% compared to last year to reach a median home price of $584,950.
“The market will require time to adapt to higher interest rates but we don’t anticipate prices to fall dramatically. Inventory is still very low and Whatcom County has very desirable places to live. Another contributing factor to home prices not dropping much are the loan products that are available,” Ahn wrote in the report.
Freddie Mac recorded 30-year mortgage rates at the end of the first quarter in 2023 as 6.32%, where the rate in 2022 was 4.67%.
The average time homes were on the market before being sold increased 148% in Whatcom County during the first quarter to 62 days. In Bellingham, the average time on the market was 48 days for the quarter compared to 16 in 2022’s first quarter.
“Sellers need to become more patient with selling their homes. Unless your house is in a core neighborhood or is priced competitively with the intent to sell quickly, it is becoming more and more realistic that your house will require up to two months to sell,” Ahn said.
The Mount Baker area had the most affordable median home sale price at $349,950, and Bellingham was the most expensive at $650,000.
Here’s how other Whatcom County city’s median home sale prices compared:
▪ Lynden — $625,000,
▪ Ferndale — $610,000.
▪ Sudden Valley — $581,000.
▪ Birch Bay and Blaine — $530,000.
▪ Nooksack Valley — $440,000.
