Whatcom home sales jump in 1Q as prices drop

Written by Dave Gallagher | The Bellingham Herald | April 4, 2012

Sales of homes in Whatcom County were brisk in the first quarter, but it came at a time of falling prices, according to a new report.

Whatcom home sales jumped 12.8 percent in the first quarter compared to a year earlier, but prices were down 6.3 percent for the same period, according to a report from Lylene Johnson of The Muljat Group. Johnson analyzes data from the Northwest Multiple Listing Service to put together statistics for local com-munities.

The median price for Whatcom homes sold last quarter was $229,450, similar to the early-stage real estate bubble days of 2004.

The boost in home sales came outside of Bellingham. While sales jumped in Lynden (up 51.7 percent in the first quarter compared to a year earlier) and Ferndale (up 43.5 percent), Bellingham’s sales were down 11.3 percent.

Johnson said lower prices for recently built homes are attracting buyers to look outside of Bellingham.

Johnson said the overall jump in sales indicates that the housing market is finally starting to get back on track. Demand needs to increase, however, before prices start stabilizing again. She noted several factors that indicate prices might stabilize toward the end of the year:

– The percentage of distressed properties — those stuck in foreclosure or being listed as a short sale — continue to decline in Bellingham. Distressed property listings accounted for 8.7 percent of all Bellingham listings in March, down from 13.6 percent in October, according to Johnson.

– Inventory remains low. The number of homes for sale in Bellingham last month was 14.8 percent lower than a year earlier. Johnson said the typical surge in new listings when spring arrives hasn’t happened yet.

– Johnson said 23 percent of homes are being sold within 30 days of being put on the market, which is creating slightly more urgency among buyers to move forward on a newly listed house.

– Sales of Bellingham homes for more than $300,000 are accounting for a higher percentage of sales, sug-gesting that more “move-up” buyers are entering the market.

Johnson also noticed increased demand for duplex sales by investors. If that segment remains strong, it could mean an increase in investors buying single-family homes again to use as rentals.

HOME SALES ACROSS THE COUNTY

A look at the first-quarter statistics for Whatcom County, with percent change comparisons to the first quarter of 2011:

Whatcom County – Median sales price, $229,450, down 6.3 percent; average sales price, $256,898, down 4.0 percent; total homes sold, 378, up 12.8 percent; average days on the market, 146, down 10.4 percent.

Bellingham – Median sales price, $253,700, down 6.4 percent; average sales price, $300,312, down 1.7 percent; total homes sold, 142, down 11.3 percent; average days on the market, 144, up 11.6 percent.

Blaine/Birch Bay – Median sales price, $215,000, up 0.1 percent; average sales price, $227,764, up 17.2 percent; total homes sold, 51, up 15.9 percent; average days on the market, 99, down 44.4 percent.

Ferndale – Median sales price, $230,000, down 2.5 percent; average sales price, $241,279, down 3.1 percent; total homes sold, 66, up 43.5 percent; average days on the market, 139, down 28.7 percent.

Lynden – Median sales price, $249,500, down 7.6 percent; average sales price, $273,511, down 6.7 percent; total homes sold, 44, up 51.7 percent; average days on the market, 135, down 34.5 percent.

Mount Baker – Median sales price, $80,000, up 34.5 percent; average sales price, $101,145, down 17.8 percent; total homes sold, 29, up 38.1 percent; average days on the market, 199, up 6.4 percent.

Nooksack Valley – Median sales price, $211,700, down 12.5 percent; average sales price, $202,577, down 11.1 percent; total homes sold, 13, up 18.2 percent; average days on the market, 182, up 2.2 percent.

Sudden Valley – Median sales price, $215,000, up 19.4 percent; average sales price, $227,764, up 17.2 percent; total homes sold, 25, up 31.6 percent; average days on the market, 99, down 44.4 percent.

SOURCE: LYLENE JOHNSON, THE MULJAT GROUP