Inventory Levels Increased But Remain Low - Bellingham Is Still A Sellers' Market
< Map of Whatcom County, Broken Down by Zip Code
Bellingham & Whatcom County Market Data
Use my Language of Real Estate page to help you understand the market data in the reports below.
MAY 2024 WHATCOM COUNTY MARKET REPORT
Once again, as we head further into Spring, new listings have increased compared to both a month ago and a year ago. But the jump in May is not a high as in April - there are 7% more listings in May, compared to a year ago; but there were 34% more listings in April. The number of pending and sold homes are at similar levels as both last year and last month, but days on market have actually dropped, compared to both a year ago and a month ago. Regardless, inventory levels have increased, but I expect we will see a spike in sales activity next month, as more homes are available for frustrated buyers. In spite of high interest rates, homes are selling for more than they did last year, which is a reflection of continued demand.
APRIL 2024 WHATCOM COUNTY MARKET REPORT
As expected, as we head further into Spring, new listings have increased significantly compared to both a month ago and a year ago. There may be a slight lag in closed sales increasing with these newly available homes. But pending sales are up, which is a more current reflection of market activity. In spite of high interest rates, homes are selling for more money and at list price. Inventory levels remain stead at 2 months, well below the 6 months benchmark for a balanced (neither "buyer's" or "seller's) market.
MARCH 2024 WHATCOM COUNTY MARKET REPORT
The average sales price has risen from the same time period last year, and homes are selling on average for higher than list price. Months supply of inventory has dropped, but I expect as we head further into Spring, new listings will increase. The question is whether pent-up demand will be a greater force than interest rates? It will be interesting to see inventory levels in the next few months.
FEBRUARY 2024 WHATCOM COUNTY MARKET REPORT
New listings remained steady from February of last year. Not surprisingly, new listing activity is up from January, as Home Sellers get a jump on what they hope to be a busy Spring for Buyers.
Inventory levels compared to sales activity (Months Supply of Inventory) have dropped slightly compared to both last month and the same timeframe last year. But overall, inventory levels are down a whopping 27%, compared to January of 2023.
I expect we will see inventory levels climb this Spring, as Home Sellers choose to take advantage of a busy time of year, for home sales. Pent-up demand means home sales will likely increase, although there could be a slight lag from when new inventory comes on the market and when those homes pend/sell. But days on market has already started to drop.
Home prices continue to increase, but at a moderate rate. Home Sellers and Home Buyers who are waiting in the wings are likely to experience typical cyclical shifts in the market associated with the calendar, but I don't expect to see major changes overall. Waiting for interest rates to drop is unlikely to be a good strategy, as all frustrated Buyers will become more active when rates drop, correlating to an increase in home prices.
JANUARY 2024 WHATCOM COUNTY MARKET REPORT
New listings continue to be lower than last year - by 14% in January, but have climbed since December, a notoriously slow momth. Both closed and pending sales are up compared to a year ago.
Inventory levels compared to sales activity (Months Supply of Invnetory) have dropped slightly compared to both last month and the same timeframe last year. But overall, inventory levels are down a whopping 27%, compared to January of 2023.
Same story we've been talking about for over a year - elevated interest rates are not having the same level of impact on the market as we typically see, because of the pent-up demand of frustrated buyers. Hence the increase in both the average and the median sales price.
Days on market has definitely stretched out. I expect that is partly as Listing Agents struggle to set the right price, given conflicting information in th emarket. But the vast majority of homes are getting close to full list price, even if it's taking a bit longer to get that price.
DECEMBER 2023 WHATCOM COUNTY MARKET REPORT
New listings continue to be lower than last year - by 15% in December. While closed sales are down 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.
NOVEMBER 2023 WHATCOM COUNTY MARKET REPORT
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.
OCTOBER 2023 WHATCOM COUNTY MARKET REPORT
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.
SEPTEMBER 2023 WHATCOM COUNTY MARKET REPORT
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!
AUGUST 2023 WHATCOM COUNTY MARKET REPORT
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.
JUNE 2023 WHATCOM COUNTY MARKET REPORT
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.
MAY 2023 WHATCOM COUNTY MARKET REPORT
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%.
APRIL 2023 WHATCOM COUNTY MARKET REPORT
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.
Older Market Reports
AFFILIATIONS & DESIGNATIONS
Copyright © 2024 Katie Mundell - All Rights Reserved.