Real Estate Questions (Part 2): How's the Real Estate Market?

“How’s the real estate market” is quite possibly the most common question I get about my work. And we’ve sure been on a roller coaster these last 18 months both nationally and right here in Whatcom County. 

This Bellingham pricing overview is one of my 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.

-Tiffany Holden, Managing Broker and data nerd

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.