Nancy Braam

Bellingham, WA 2010 Real Estate Numbers. How’s the market?

Forget prices for a minute. Let’s just look at the volume or number of sales.

You can see by quickly looking at the numbers on the far right that at the height of the market, we sold 1256 single family residences in Bellingham, WA in 2006. Now 5 years later we sold 820. That’s a decrease of about 35%!

Remember the law of supply and demand? Volume represents demand. So you could say the demand for houses has decreased 35% in 5 years. Looking at it this way gives you an idea why prices are still decreasing. Over 1/3 less people want to by a house. Competing for a sale with fewer buyers drives prices down.

You’ll notice that the market was slow to start in January and February for the past two years. A market that takes off in January after the Holidays indicates a robust market. People are ready to go. It’s an early indicator of the rest of the year.

I’ll update you on January volume and we’ll make a prediction about the 2011 market. Watch for the post the first week in February. If you like to talk numbers and would like more information, contact me. I love to talk about this stuff.

3rd quarter Real Estate Numbers For Bellingham and Whatcom County

Amazing that we are already past the third quarter!

I know this chart is a little messy, but I wanted you to be able to see all the areas together.

As you can see, Bellingham prices continue to float downward. Ferndale prices have fallen the most since the 3rd quarter of 08.

Blaine is getting an upturn in average price. Sudden Valley is seeing its first upturn and Lynden is holding steady.

The biggest factor effecting value right now is the huge decline in the number of sales. We are down from 8%-42%, depending on area, since last year and last year was down  from the year before.

When there is no demand, prices fall. Add to that, the foreclosures, short sales and the people who absolutely have to sell, and you put tremendous downward pressure on the market.

When people ask me “How’s the market?” I answer, “It depends on if you’re buying or selling.” If you are buying, there are some great opportunities at bargain prices, with low interest rates. If you are selling, knock it in the head and bury it quick.

Several of my clients ask if its better to wait it out. That’s a valid plan, but the wait is not going to be a short time.. Whenever the market finally bottoms out, it won’t just pop back up. It’s what they say about the stock market; It jumps out the window, then takes the stairs back up. Down is steeper and faster than up.

Expect stagnation at the bottom while we get people back to work and then a slow climb back up. Normal home appreciation is 4% annually. We have lost value at from 6-10%.

My advice: If you have some money and good credit, buy a property for your real estate portfolio. If you have to sell, now is the most money you’ll get for your property for a while.

The best plan: Buy the next house now and wait to sell the current house until the market rebounds. I know that doesn’t work for everyone, but if it works for you, think about it.  I’m always happy to brainstorm with you.

Under $300,000 Sales For October 2010 in Bellingham Wa

There were 34 residential sales in Bellingham under $300,000 in October.

Lowest priced sale in Bellingham in October

Here’s the lowest:

510 W. Illinois

• 1208 square feet
• 3 bd, 1 bath
• Fixer-upper
• Central location on arterial
• Asking – $125,000
• Sold for $100,000
• 66 days on the market

Even in this slow market, we have sales that happen as soon as we put the house on the market. Sometimes we even have multiple offers. This month these homes sold in less than 10 days.

From the left:

1715 Woburn – 4 bd/2 ba, 2000 sf, built in 1979, fixer, sold for $131,000.

2410 Ellis – 3 bd/1 ba, 1363 sf, built in 1900, lots of new stuff, sold for $190,000.

3813 Ohio – 2 bd/1 ba, 864 sf, built in 1975, good area, sold for $195,000

For homes under $300,000 the average market time in October was 75 days. Average size was 1633 sq with 3 bdrms, 1.75 baths.

They sold for 94% of their asking price on average and 88% of their original asking price – so in other words the average house started at $252,159, lower their price to $235,041 and then sold for $220,735.

There were a total of 64 sales in Bellingham for the month of October. So the bulk of all residential sales were under $300,000 – 53% to be exact. 

To put this in a little perspective, there were 9 sales over $500,000 with the top sale at $1,040,000 for a Chuckanut waterfront home that was a short sale.

If you’d like information about a sale in your neighborhood or a specific home you’ve been watching, contact me - I am happy to get that information for you.

Bellingham, WA Real Estate Sales For August 2010

August 2010 At A Glance

• Average price: $462,019
• Median price:  $372,000
• Number of Single Family Residences Sold: 89
• Number of Condos Sold: 14

Example: The Two Lowest Priced Bellingham Home Sales In August

Lowest Priced Home In Bellingham

This 2 bedroom, 1 bath, 1000sf fixer-upper on a busy street sold for $97,000 on August 30.

Second Lowest Priced Home In Bellingham In August

This house is also 2 bdrm, 1 bath. This is a serious fixer-upper with repairs needed including septic, kitchen and bath. It is in a great neighborhood. It sold for $132,000 on 8/31/10.

Example: Two Highest Priced Sales in Bellingham in Aug.

Highest Sale In August

3 bdrm, 1.5 baths, 1644 sf built in 1966 in a prime location on the north shore of Lake Whatcom. It sold for $895,000 on 8/29/10.

Second Highest Sale in August

8 bdrm, 4 bath, 6168 sf , Fairhaven landmark home built in 1890. It sold for $750,000 on 8/10/10. It was on the market 854 days.
5 homes sold for over $700,000 throughout Bellingham in August. In looking over the sales, the best values are in the $400,000 to $500,000 range. Like these.

New construction, 2400 sf sold for $425,000

Classic Craftsman sold for $410,000

This 4 bd/3ba, 3000 sf home sold for $470,000

This is just a sampling, if you want to know about your price range or a specific home, contact me and I’ll get you that information.