Published October 12, 2023

Q3 Market Report

Written by Leo Cohen

Q3 of 2023 is in the books, and here's a summary of how this quarter stacked up against Q2, and also a year-over-year and 5-year comparison. Sales volume is down, prices are slightly down in the short term but even with a dip, still holding an average annual appreciation of 9.6% for the last 5 years.

Data like this has a success bias - it's tracking what did close, not all the canceled and expired listings, or sellers who would sell but aren't able to stomach the financing for the house they want.

In this type of market, it's more important than ever to provide a well-maintained product that's priced appropriately for the current financing climate as well as the season of year.

This Bellingham pricing overview is one of our favorite spreadsheets to update each quarter. The red line shows the median closed sales price; while the blue line shows the median price homes were originally listed at. In 2021 we see a huge spread with red above blue - the season of "way over list price" offers and multiple-offer situations.

As interest rates reached and passed 5% in 2022, we see the lines flipping, with closed prices significantly lower than the original-price medians. However, even with interest rates in the 6-7% range for MONTHS on end, we have not seen a corresponding "market crash" that so many people predicted way back when rates headed towards 5%.

As with any data, this is missing important elements: there's a "success bias" as it doesn't show how many houses DIDN'T sell. Bellingham’s canceled & expired listings are up, and overall sales volume is down year over year.

As always, market fundamentals apply: qualified homebuyers are looking for well-maintained houses in desirable areas. With fewer buyers in play, sellers need to make sure their product is in good condition and priced appropriately.

Questions? don't hesitate to reach out for a personalized CMA and video going over your specific situation. We often work 6-12 months ahead, so even if you don't think you'll be ready to move til 2024, don't hesitate to reach out for a consultation this fall.

Information and statistics derived from the Northwest MLS.

* We value original writing, and data-driven information. All CGNW blog posts are written by real humans on the team, without the aid of AI.