Inventory Levels Increased But Remain Low - Bellingham Is Still A Sellers' Market
Use my Language of Real Estate page to help you understand the market data in the reports below.
New listings continue to be lower than last year - by 15% in December. While closed sales are own compared to last year, pending sales (which reflect the most current demand) are up compared to last year.
Inventory levels took a big dip from November to December down nearly 11%. Declining inventory levels is more stark when compared to the same time last year, which is down 25%. Declining supply is reflected in higher prices. Lowered interest rates is driving demand, as reflected in pending sales, despite what is typically one of the slowest sales months of the year.
Months Supply of Inventory remains steady, with inventory of homes down from the same time last year. Between uncertainty with interest rates and the coming slow season, it's hard for real estate agents and their clients to price homes. Most homes are selling for very close to asking price. New listings are down nearly 21% from the same timeframe last year! Days on market continue to creep up.
Months Supply of Inventory remains steady, but it's likely it will climb with the holidays/slow time of year. Low inventory levels are keeping prices up, even if it takes longer on average for homes to sell.
Months Supply of Inventory dropped slightly to 2.7 months, down from 3 months in August. This drop in inventory levels is because new listings have dropped considerably, both compared to a month ago (down 27%) and to the same time period last year (down 31%). New listings decline surprassed the decline in closed sales (down 26%), netting an overall lower inventory level.
Sales prices are holding steady compared to a year ago, although they are down compared to last month. Days on market has been creeping up.
While higher interest rates are making it hard for buyers, an extremely low supply is compensating for lower demand. Part of the decline in demand is related to the time of year, but there is no doubt buyers are nervous. Stay tuned!
New listing and sales activity have both declined, compared to July. Based on the recent decline in sales activity, despite the decline in number of new listings, months of inventory has gone up to 3 months in Whatcom County, compared to 2.7 months in July. For Bellingham, months of inventory dropped from 2.5 months in July to 2.1 in August.
So the question is, will we continue to see home sales decline, as is typical for the fall and winter? If so, expect inventory levels to climb, unless we see an even steeper decline in new listings, compared to sales activity.
Wow! These are one again interesting times. New listings are down 38% from last year! We owe a lot of that to homeowners with low-interest rates mortgages who are choosing to stay put, rather than having their mortgage payment as much as double, if they were to move.
Up until this month, this led homes sales to have declined, compared to a year ago. But not in June! Pending sales, the most current reflection of market activity, increased 7%. Days on market have also declined, compared to recent months, although days on market has increased compared to last June.
We are continuing to see bidding wars on some homes, but the offering 20%+ over asking price is now rare. Between that cooldown in the market craziness and mortgage interest rates hurting affordability, we have been seeing average home prices have declined. But average home prices have fluctuated in the last year, so the amount of the decline varies based on what timeframe you are comparing current prices to: 9% compared to June of last year, and 4% year-to-date.
But buyers who thought they would wait on the sidelines for prices to drop are finding any savings in home prices is more than eaten up by a larger mortgage payment, thanks to higher interest rates.
Spring typically means more real estate activity, with more homes listed for sale. This year is no exception, although not as many home were listed in May, compared to May of 2022. Correspondingly, the number of homes that pended and sold in May has declined, compared to a year ago. Overall, the inventory of homes for sale has increased significantly compared to a year ago, but inventory levels remain low, leaving us clearly still in a Seller's Market. Refer to my Language of Real Estate - Months Supply of Inventory if you want to understand how we determine whether it's a buyers' vs. sellers' market.
While average home prices have declined compared to a year ago, average prices in Whatcom County have actually consistently risen since the low in January of 2023. In fact, the average price for homes sold since the beginning of the year has increased by 10%!
I have seen several desirable homes create bidding wars, driving up prices as much as 25% over list price. I am also seeing more homes setting offer review dates, which is an indication of strong demand. This indication is confirmed by the sales price compared to list price, which remains over 100%.
Spring typically means more real estate activity, with more homes listed for sale. This has not been the case this April - new listings are down 39%, compared to April of last year. This has resulted in an increase in the average list price, compared to a year ago.
Closed and pending homes has declined from last year, while days on market has increased. Frustrated buyers are not letting an increase in interest rates discourage demand.
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