May 4th Pending Ratios for Whatcom County

Thbellingham homese market continues to be active with inventory running low. If you are thinking of selling now is the time!

The number of real estate signs you see in yards can be deceiving as to the number of homes actually for sale WITHOUT offers on them. If you are seeing new signs around your neighborhood and curious if any of those homes already have offers on them, we have your answers!

Every week we keep track of how many homes are for sale around Bellingham and Whatcom County and how many of those homes have pending offers on them. Pending is the time frame between when an offer has been mutual accepted between the buyer’s and the seller’s of the home and when the title actually transfers hands. This give the buyer’s time to get the financing, do inspection, review the title reports and more.

As of Friday, May 4th, the pending ratio in Bellingham was 48%. Click the links to view a report of how many homes are for sale in each area by price range and how many of them are pending showing just how active certain sectors of the market are.

The Birch Bay Pending ratio was 38%

The Ferndale pending ratio was 42%

The Lynden pending ratio was 47%

The Sudden Valley pending ratio was 55%

If you are thinking of selling your home or property, Johnson Team Real Estate would love to help! We are here to help you will all your real estate needs! You can reach us toll free at 1-888-713-3056 or email us at Info@JohnsonTeamRealEstate.com

50% of Homes Sold in 30 Days in March

50% of Homes Sold in 30 days in March [INFOGRAPHIC] | MyKCM

Some Highlights:

  • The National Association of REALTORS® recently surveyed their members for their Confidence Index.
  • The REALTORS® Confidence Index is a key indicator of housing market strength based on a monthly survey sent to over 50,000 real estate practitioners. Practitioners are asked about their expectations for home sales, prices and market conditions.
  • Homes sold in less than 60 days in 35 out of 50 states and Washington D.C.
  • Homes typically went under contract in 30 days in March!
  • Give us a call today at (888) 713-3056 or email us at Info@JohnsonTeamRealEstate.com.

Lake Whatcom Waterfront Home For Sale

Don’t miss your chance to own a pristine lakefront home in beautiful Bellingham!  Stunning 3078 Northshore Drive is located on the shores of Bellingham’s  magnificent Lake Whatcom.

032_Boat LiftLooking for sun, no bank waterfront, privacy & elegant home? Your search is finally over. This northwestern contemporary is built by a premier builder who used only the finest of materials to create a masterpiece on the Lake. From the quartz counter tops to the steam shower, no expense has been spared -even Fido has his own shower. The setting is peaceful with walkways, pond, landscaping & slice of waterfront with dock, boat lift, outdoor kitchen that make it 2nd to none.

If you would like more detailed information on the home or would like to schedule a private showing feel free to call 1-888-713-3056 or email us at Info@JohnsonTeamRealEstate.com, we would be happy to help!

Visit the home’s website to take a 3-D virtual tour today!

4 Reasons Why Today’s Housing Market is NOT 2006 All Over Again

4 Reasons Why Today’s Housing Market is NOT 2006 All Over Again | MyKCM

With home prices rising again this year, some are concerned that we may be repeating the 2006 housing bubble that caused families so much pain when it collapsed. Today’s market is quite different than the bubble market of twelve years ago. There are four key metrics that explain why:

  1. Home Prices
  2. Mortgage Standards
  3. Mortgage Debt
  4. Housing Affordability

1. HOME PRICES

There is no doubt that home prices have reached 2006 levels in many markets across the country. However, after more than a decade, home prices should be much higher based on inflation alone.

Frank Nothaft is the Chief Economist for CoreLogic (which compiles some of the best data on past, current, and future home prices). Nothaft recently explained:

“Even though CoreLogic’s national home price index got to the same level it was at the prior peak in April of 2006, once you account for inflation over the ensuing 11.5 years, values are still about 18% below where they were.” (emphasis added)

2. MORTGAGE STANDARDS

Some are concerned that banks are once again easing lending standards to a level similar to the one that helped create the last housing bubble. However, there is proof that today’s standards are nowhere near as lenient as they were leading up to the crash.

The Urban Institute’s Housing Finance Policy Center issues a Housing Credit Availability Index (HCAI).According to the Urban Institute:

“The HCAI measures the percentage of home purchase loans that are likely to default—that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates that lenders are willing to tolerate defaults and are taking more risks, making it easier to get a loan.”

The graph below reveals that standards today are much tighter on a borrower’s credit situation and have all but eliminated the riskiest loan products.

4 Reasons Why Today’s Housing Market is NOT 2006 All Over Again | MyKCM

3. MORTGAGE DEBT

Back in 2006, many homeowners mistakenly used their homes as ATMs by withdrawing their equity and spending it with no concern for the ramifications. They overloaded themselves with mortgage debt that they couldn’t (or wouldn’t) repay when prices crashed. That is not occurring today.

The best indicator of mortgage debt is the Federal Reserve Board’s household Debt Service Ratio for mortgages, which calculates mortgage debt as a percentage of disposable personal income.

At the height of the bubble market a decade ago, the ratio stood at 7.21%. That meant over 7% of disposable personal income was being spent on mortgage payments. Today, the ratio stands at 4.48% – the lowest level in 38 years!

4. HOUSING AFFORDABILITY

With both house prices and mortgage rates on the rise, there is concern that many buyers may no longer be able to afford a home. However, when we look at the Housing Affordability Index released by the National Association of Realtors, homes are more affordable now than at any other time since 1985 (except for when prices crashed after the bubble popped in 2008).

4 Reasons Why Today’s Housing Market is NOT 2006 All Over Again | MyKCM

Bottom Line

After using four key housing metrics to compare today to 2006, we can see that the current market is not anything like the bubble market. Give us a call at (888) 713-3056 or email us at Info@JohnsonRealEstate.com.

This Just In: Data Says May is the Best Month to Sell Your Home

This Just In: Data Says May is the Best Month to Sell Your Home | MyKCM

According to a newly released study by ATTOM Data Solutions, selling your home in the month of May will net you an average of 5.9% above estimated market value for your home.

For the study, ATTOM performed an “analysis of 14.7 million home sales from 2011 to 2017” and found the average seller premium achieved for each month of the year. Below is a breakdown by month:

This Just In: Data Says May is the Best Month to Sell Your Home | MyKCM

ATTOM even went a step further and broke their results down by day.

Top 5 Days to Sell:

  • June 28th – 9.1% above market
  • February 15th – 9.0% above market
  • May 31st – 8.3% above market
  • May 29th – 8.2% above market
  • June 21st – 8.1% above market

It should come as no surprise that May and June dominate as the top months to sell and that 4 of the top 5 days to sell fall in those two months. The second quarter of the year (April, May, June) is referred to as the Spring Buyers Season, when competition is fierce to find a dream home, which often leads to bidding wars.

One caveat to mention though, is that when broken down by metroATTOM noticed that while warmer climates share in the overall trend, it turns out that they have different top months for sales. The best month to get the highest price in Miami, FL, for instance, was January, and Phoenix, AZ came in with November leading the charge.

If you’re thinking of selling your home this year, the time to list is NOW! According to the National Association of Realtors, homes sold in an average of just 30 days last month! If you list now, you’ll have a really good chance to sell in May or June, setting yourself up for getting the best price!

Bottom Line

Let’s get together to discuss the market conditions in our area and get you the most exposure to the buyers who are ready and willing to buy! Give the Johnson Team a call today at (888) 713-3056 or email us at Info@JohnsonTeamRealEstate.com.

Put The Johnson Team’s Experience to Work For You Today!

Wow, what an exciting week it has been? Listings are pending almost as quickly as we can get them listed and on the market. Here’s a peak a couple Bellingham homes that pended just days after becoming active.

Pending Harris

Are you considering selling your home, but not sure how to get started?

Call us today at (360) 303-2734 and put our experience to work for you today!

Pending Elizabeth

Not ready to sell but just curious of your home’s value? 

Click and enter your your home’s address for a FREE no obligation home value report .

Bellingham Home

Why Home Prices Are Increasing

Why Home Prices Are Increasing | MyKCM

There are many unsubstantiated theories as to why home values are continuing to increase. From those who are worried that lending standards are again becoming too lenient (data shows this is untrue), to those who are concerned that prices are again approaching boom peaks because of “irrational exuberance” (this is also untrue as prices are not at peak levels when they are adjusted for inflation), there seems to be no shortage of opinion.

However, the increase in prices is easily explained by the theory of supply & demand. Whenever there is a limited supply of an item that is in high demand, prices increase.

It is that simple. In real estate, it takes a six-month supply of existing salable inventory to maintain pricing stability. In most housing markets, anything less than six months will cause home values to appreciate and anything more than seven months will cause prices to depreciate (see chart below).

Why Home Prices Are Increasing | MyKCM

According to the Existing Home Sales Report from the National Association of Realtors (NAR), the monthly inventory of homes for sale has been below six months for the last five years (see chart below).

Why Home Prices Are Increasing | MyKCM

Bottom Line

If buyer demand continues to outpace the current supply of existing homes for sale, prices will continue to appreciate. Nothing nefarious is taking place. It is simply the theory of supply & demand working as it should. If you have any further questions on the market, feel free to give us a call today at (888) 713-3056 or email us at Info@JohnsonTeamRealEstate.com.

Columbia Neighborhood Open House!

Join Rich Johnson for an open house today,  Saturday, April 28th from 12pm – 2pm or Sunday from 1pm – 3pm at 2327 Elizabeth St in Bellingham.

Open House

Located in one of Bellingham’s most sought after neighborhoods where the little ones can walk to school and there are parks to enjoy, this cozy bungalow in the Columbia District is for you. This simple & functional home has been redone from top to bottom to include the roof, siding, AC/heat pump, windows. Elizabeth Park is only minutes away.

Can’t make the open house? Call today to schedule a showing at 360.303.2734 or visit the home’s website here!

Check The Whatcom County Inventory!

Thbellingham homese market continues to be active with inventory running low. If you are thinking of selling now is the time!

The number of real estate signs you see in yards can be deceiving as to the number of homes actually for sale WITHOUT offers on them. If you are seeing new signs around your neighborhood and curious if any of those homes already have offers on them, we have your answers!

Every week we keep track of how many homes are for sale around Bellingham and Whatcom County and how many of those homes have pending offers on them. Pending is the time frame between when an offer has been mutual accepted between the buyer’s and the seller’s of the home and when the title actually transfers hands. This give the buyer’s time to get the financing, do inspection, review the title reports and more.

As of Friday, April 27th, the pending ratio in Bellingham was 51%. Click the links to view a report of how many homes are for sale in each area by price range and how many of them are pending showing just how active certain sectors of the market are.

The Birch Bay Pending ratio was 41%

The Ferndale pending ratio was 49%

The Lynden pending ratio was 47%

The Sudden Valley pending ratio was 69%

If you are thinking of selling your home or property, Johnson Team Real Estate would love to help! We are here to help you will all your real estate needs! You can reach us toll free at 1-888-713-3056 or email us at Info@JohnsonTeamRealEstate.com

Just Listed! Columbia Neighborhood Bungalow!

Just Listed! Bellingham Bungalow

Looking for a great place in one of Bellingham’s most highly sought after neighborhood where the little ones can walk to school or to beautiful parks to enjoy, then this cozy bungalow in the Columbia District is for you. This simple & functional home has been tastefully redone from top to bottom to include the roof, siding, AC heat pump, paint, windows & that’s just part of the list – it’s all new. Beautiful Elizabeth Park – well it’s as if it’s your own backyard as it’s only minutes away.

Join Rich Johnson for Open House this weekend Saturday, 12pm to 2pm and Sunday 1pm to 3pm.

Can’t make the Open Houses? Call today for a private tour at (360) 303-2734.

You may also view a virtual tour of the home here!