2022 Q1 Market Report

Well friends, we've made it through the first three months of 2022, and just like 2021, there's been plenty of chaos in the housing market. I've felt it personally - rising interest rates chewing away at my buying power, a lack of inventory, and better offers coming in to swoop the house I loved.

This report is intended to offer structure and solid data amidst the swirl of commentary so easily found online and in conversation - the "yep the market's CRAZY!" and the "it's really tough out there for buyers." While it's still very broad data, hopefully this can provide both historical context and recent specifics to what the housing market has looked like these last three months.

And as always, reach out to me directly (tiffany@cohengroupnw.com) for any specific questions or so I can provide you with a detailed report on your home, neighborhood or target area. (If you already have a brokerage relationship with another agent, this is not intended as a solicitation).

Let's jump in.

Let's dig into some market factors like days on market, interest rates, and larger economic factors.  

Days-on-Market is one metric for how quickly a market is moving. While some homes do sell in under 5 days (like half of the closed sales in Bellingham), it's become typical for seller to set an "offer review date" to allow time for enough showings, preinspections and so on. This is beneficial to the seller as buyers have at least a few days to put their best offer together. Thursdays have become a hot listing day, with showings and preinspections happening over the weekend, followed by offer negotiations and pending in the first half of the following week. 

Here's the relationship of how much homes have been closing over list price (median sold vs median original list price). Even though list prices are increasing as well, we're still seeing a bump in price on many of the homes that close. This is a good time to note that sample size is incredibly important with this data. Very few homes sold in Sudden Valley relative to the municipalities, and so the list/sold ratio should be looked at in much more specific detail before making judgment calls.

Along with housing price increases comes the discussion around housing affordability. We've all felt it, especially these last couple years, so this graph just illustrates and offers the facts to substantiate our lived experience. 

Here's the Whatcom County housing market in context of the national housing shortage and also some of the major economic events of the last two decades. 

Annnnnd everyone's *favorite* topic right now: interest rates.

We’ve been covering the changes to housing interest rates in detail in the Weekly Market Updates, and I’ve also sat down with local loan officers

Dylan Langei, Ian Mullen, and Luis Gonzalez to go into more depth on the historical, economic and big-picture factors around this topic.

It's critical that if you're in the market for a home right now, that you stay in close communication with your lender so that you're updated on the status of your buying power.

In summary: the Q1 market saw an available inventory at odds with buyer demand, coupled with buyer intensity that is similar to what we experienced this time last year. Strong home appreciation in all major markets in Whatcom County testify to the willingness of today's buyer pool to pay more and more for a home to live in, along with the scarcity & difficulty of new development. (Learn more about the Whatcom County Comprehensive Plan and Buildable Lands review).

At the same time, we're hearing anecdotal reports of buyer fatigue - stories of listings with 200 Matterport tours and 15 showings that just get one or two offers, because multiple buyers that loved the property assumed it would sell way over list, and didn’t want to be disappointed again.