Bellingham and Whatcom County Real Estate Monthly Report
As is often the case, the real estate news in January 2012 was a mixture of good news and bad news. The good news is relatively easy to explain, but the bad news is a bit more puzzling. We’ll start with the easier question and move from there to the more difficult one.
The number of homes sold in Whatcom County was up strongly (20.4%) from the number sold in January last year. In fact, more homes sold than in any January since 2008. The areas contributing to this increase were Ferndale, Sudden Valley, Birch Bay/Blaine and Nooksack Valley. Sales in those areas increased from 67% to as high as 80% over a year ago. Only two areas (Bellingham and Lynden) sold fewer homes than a year ago.
Sales compared to December were down for the most part, which is typical. The two areas in which that was not the case were Nooksack and Sudden Valley, where sales were stronger than they have been for several months.
Prices from January 2011 to 2012, for the most part, were a different story, with the average droping 9.4% and the median dropping 6.3% for the county as a whole. The average price of a house sold in Whatcom County during January 2012 was $236,389 and the median was $223,000. In Bellingham, the average price was $255,190 and the median was $235,000. This continues the trend of the past 6 months.
Inventory is still down significantly from a year ago and the 2 year trend lines for unit sales continue to show a slight upward tilt, while the price trend lines are definitely dropping. The question, of course, is Why?
First let’s look at number of sales. The reality is that it’s a great time to buy and people are doing so. Interest rates are really low: how does a 30 year fixed rate mortgage sound with ¼ point and an interest rate below 4%? Lenders are competing to make loans – we’re seeing offers from lenders to help pay closing costs. Prices are down. For those people who were wishing they had bought before prices went up…those prices are back, and interest rates are lower.
Buying power has increased substantially and we’re seeing the strongest activity in the first time buyer and first move up buyer price ranges. Note the price range distribution below: No sales above $500,000, compared to 5 in January of 2011; over 75% below $300,000 in 2012 compared to 58% in 2011.
|
January 2011 Price Ranges in $1000’s |
Total 2011 January $ Sales |
Total Units Sold |
Average Sales Price |
% of Market |
Changes in January Year to Year Distribution of Residential Sales in Bellingham |
|
|
|
||||||
|
<300 |
$5,684,974 |
26 |
$218,653 |
57.8% |
||
|
300 to <500 |
$5,220,950 |
14 |
$372,925 |
31.1% |
||
|
>500 |
$2,830,000 |
5 |
$566,000 |
11.1% |
||
|
>750 |
$0 |
0 |
$0 |
0.0% |
||
|
January 2012 Price Ranges in $1000’s |
Total 2012 January $ Sales |
Total Units Sold |
Average Sales Price |
% of Market |
Unit Change |
Average Price Change |
|
|
||||||
|
<300 |
$6,340,800 |
31 |
$204,542 |
75.6% |
19.2% |
-6.5% |
|
300 to <500 |
$3,622,000 |
9 |
$402,444 |
22.0% |
-35.7% |
7.9% |
|
>500 |
$500,000 |
1 |
$500,000 |
2.4% |
-80.0% |
-11.7% |
|
>750 |
$0 |
0 |
$0 |
0.0% |
0.0% |
0.0% |
That was the easy question. Now is the harder one: why are prices dropping if the demand is good and inventory is low? Continue reading on our website to learn more……
For more information on Bellingham Real Estate or to search for homes in the Bellingham and Whatcom County area visit www.JohnsonTeamRealEstate.com, your one stop Bellingham real estate and community information resource!