Get the Facts on the Bellingham Real Estate Market!

As I talk to people about real estate, I am increasingly told they feel things are cooling off.  When I ask why, the common replies are the frequency of price reduction signs, flipped sales, increased market times & listings going beyond the “offer review date”.  To get a better perspective of the “State of the Market”, let’s take a look at the following statistics for our local market.

 

Whatcom County has a 2.83 month supply of inventory.  Remember that a healthy real estate market has 4 to 6 months.  There are currently a total of 910 active residential & condos listings.

The average sale price of single family and condo sales closed in Whatcom County has increased almost $16,000 with the median price increasing $44,900 over the past 12 months A local lender’s interest rate as of 10.19.2017 for a 30 year fixed rate loan with 5% down is 3.875%. That same loan with the same lender was 3.75% 8.03.2017.  Rates are expected to rise in the coming months to more than 4%.

So let’s drill down further to see some specifics:

-A 5 bedroom, 3 bath, 1576 sq ft fixer built in 1900  on Jaeger St just closed with a full price offer @ $375,000.  It was such a fixer the agent didn’t even include interior photos of the home in the listing.

-Today there are 18 homes / condos that have pended after 5 or less days on the market.  The average market time for all pendings is 35 days. In the last 30 days, there have been 28 homes / condos in Bellingham that have closed within 5 days or less of the home being listed.  Of the 106 homes / condos that sold in Bellingham over the past 30 days, 29 sold in excess of their list price & 16 sold at the list price

-I recently talked to an agent who told me she has written offers recently for 5 different buyers & lost out on all five because there were multiple offers.

So to bring this all together:

There are certainly homes that languish on the market – there always has been & always will be.

Inventory is short to the extreme with no end in sight

Prices will continue to rise.  There is no reason to believe, in my opinion, that demand will slack off.  In fact as the Seattle market continues to heat up, buyers will be forced to look up & down the I-5 corridor to find affordable housing.  I just sold a home to a 1st time buyer in Ferndale.  He commutes to Seattle every day to work.  We will see more of that.

Interest rates are still good  but are increasing.

Here’s a great visual to break down inventory numbers over the past several years:

Market Snap Shot Oct. 17

If you or your friends have questions about real estate, Mike & I would be happy to help.  As many of you know, we have been licensed for years, are committed to helping our clients make good decisions & are not afraid to put in our time – we usually are the 1st ones at the office & the last ones to leave. If that’s the kind of commitment you want for yourselves or want to refer to your friends, please pass our names on.  We are the guys that turn the lights on in the morning & off in the evening.

 

The Current Rates!

If you are buying, selling, or refinancing, the current mortgage rates are very important. You can see below what the current rates are as of Thursday, November 2nd.

 

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Thank you Sidney Stonecypher at People’s Bank Home Loan Center for the rates. If you have mortgage questions you can reach her at 360-650-5365

Buying, Selling, or Refinancing? Check The Rates Here!

If you are buying, selling, or refinancing, the current mortgage rates are very important. You can see below what the current rates are as of Thursday, October 12th.

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Thank you Sidney Stonecypher at People’s Bank Home Loan Center for the rates. If you have mortgage questions you can reach her at 360-650-5365!

The latest in Home Loan and Mortgage Rates!

Have you been staying up to speed on the latest in home loan and mortgage rates? Johnson Team Real Estate can help you out. If you are in the market for a home loan below are the mortgage rates as of today October 5th, courtesy of Sidney Stonecypher at People’s Bank.

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For more details, or a custom home loan quote, contact Sidney Stonecypher at People’s Bank at 360-676-4597.

How Many Homes Have Offers?

Bellingham Real Estate

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 Saturday, April 29th, the pending ratio in Bellingham was 37%. Click the links to view a report of how many homes are for sale in each area and 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 39%

The Ferndale pending ratio was 34%

The Lynden pending ratio was 25%

The Sudden Valley pending ratio was 30%

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

Purchase Rates as of 8/24

Courtesy of People’s Bank Home Loan Center, we have the current mortgage rates to pass along to you! Whether you are looking to buy, sell, or refinance, here are the current market rates. These are as of August 24th, 2017.

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Thank you Sidney Stonecypher at People’s Bank Home Loan Center for the rates. If you have mortgage questions you can reach her at 360-650-5365!

 

Bellingham Real Estate Market Report

Market Snap Shot

Brokers & owners of some larger Seattle brokerages are using the terms “Typical Summer Slowdown”, “Some Cooling Off in the Luxury Market”, “Prices may be Plateauing”, “Pace of Sales is Slowing & the number of multiple offers is moderating”.

Now it’s true that what happens in Seattle usually filters down to us in Whatcom County, but what I am seeing & hearing on the ground here in Bellingham is that our market is still on steroids.  The reason for that is pretty clear. If you look at the chart above, you’ll see a picture of historically low inventory.  Added to this, are

  • Low interest rates (as of 7.7.2017, Peoples Bank is quoting a 5% down 30 year fixed rate at 3.875%)
  • While there clearly is Buyer fatigue (buyers who have written multi offers only to be beaten out by another stronger offer & are getting worn out & discouraged), there is still strong demand on the buying side. In looking at pending Bellingham residential sales today, there are a total of 147 homes that are pending.  Of these pending sales, 68 pended within the 1st 7 days of the listing.
  • The more telling thing that the above figures do not show is Buyer intensity. As of today’s date (7.28.2017) if you dig a bit deeper into the “Sold Market”, you see that in Bellingham residential sales there were 115 homes that sold in the past 30 days. Of these sales, 65 of the 115 pended in the 1st 7 days (56%).  Of the 115 that closed, 59 homes sold in excess of the list price.

So what will it take to change this dynamic?

  • A significant uptick in interest rates would certainly slow thing down.
  • A significant increase in inventory would lead to more supply / choices. As I mentioned in our last newsletter, the availability of buildable land in Bellingham is extremely limited.  With a few exceptions, most new homes are being built north of town in the Cordata area.  This certainly is not enough to have a major impact on the overall market.
  • New inventory could be made available by current sellers either scaling up or scaling down – the problem is, of course, where do they move.

So if you are a buyer, I would strongly recommend that you have your financing locked in.  Pre approval no longer passes muster.  You need to approach a seller with a pre underwritten loan & even then you may be up against a competitor who has cash & does not need a loan.  Most importantly, a buyer needs to act DECISIVELY, must keep POSITIVE in a difficult environment & not lose sight of their GOAL.

If you are a seller, you need to realize that even in this market, there are homes that do not sell.  A home needs to be properly priced, well presented to the market & in condition which is acceptable to the market.

If you have questions or if your friends & family have questions about the market in general or about their home or needs specifically, we would be happy to meet with you.  Collectively, we (The Johnson Team) has in excess of 100 years of real estate experience in Bellingham & Whatcom County.  While we certainly don’t claim to know it all, we do claim to care enough about you & your friends & family to give you the best advice possible to enable you to make the best decisions possible.

Curious how the market conditions are impacting your home’s value?

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Bellingham Home Worth

Learn Home Values Around Lake Whatcom

Do you own a home on Lake Whatcom?

Curious how the active real estate market is impacting your home’s value?

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Lake Whatcom Home Values

Don’t currently live on Lake Whatcom, but curious about learning more about the area?

Click the map to search for homes around Lake Whatcom in Bellingham.

Lake Whatcom Map

Lake Whatcom is a true Bellingham gem! Real Estate here is highly desired for the area’s natural beauty and freshwater recreational delights.

Lake Whatcom runs from the eastern edge of Bellingham in the Silver Beach Neighborhood on through Geneva, Sudden Valley, South Bay and into the foothills. Many lake front communities are located along the lake, including Delesta Park, Strawberry Point and Agate Bay. Each of these desirable neighborhoods offer housing options that appeal to a variety of budgets and real estate needs.

Lake Whatcom also serves as Bellingham’s water reservoir and is protected through watershed limitations and restrictions. Despite stringent protections, motorized watersports such as boating and jet skiing are allowed. The lake is also a great place for canoeing, kayaking, and sailing.

To learn more about Bellingham’s beautiful Lake Whatcom call us today at 1-888-713-3056 or email us at Info@JohnsonTeamRealEstate.com, we are here to help!

 

Buying, Selling, Or Refinancing?

Have you seen the current market rates? They are an important part of deciding if it’s the right time to buy, sell, or refinance. These are the rates as of Thursday, June 8th.

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Thank you Sidney Stonecypher at People’s Bank Home Loan Center for the rates. If you have mortgage questions you can reach her at 360-650-5365!

Financial Planning: 4 Reasons to Buy a House Today

Financial Planning: 4 Reasons to Buy a House Today | MyKCM

 

Homeownership will always be a part of the American Dream. There are advantages to owning your own home (educational, health, social) that far transcend any economic impact. However, we want to look at several of the financial advantages of homeownership in today’s post.

1. Buying is Cheaper Than Renting

The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States. The report reveals that:

“Interest rates have remained low, and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation…Nationally, rates would have to reach 9.1% for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.”

2. Homeownership “Forces” You to Save

According to SavingAdvice.com, homeownership is a great way to save. Their advice is quite simple:

“Homeownership is a “forced” savings account because you own the home, you have no choice – that monthly housing cost has got to be paid no matter what…Homeownership can be an outstanding way to force yourself to be more frugal in the rest of your spending so that you can save and build equity in your home.”

3. Homeownership Offers Several Tax Deductions

According to the Tax Policy Center’s Briefing Book -“A citizen’s guide to the fascinating (though often complex) elements of the federal Tax System” – there are several tax advantages to homeownership. Here are three:

  1. Homeowners who itemize deductions may reduce their taxable income by deducting any interest paid on a home mortgage.
  2. Homeowners who itemize deductions may also reduce their taxable income by deducting property taxes they pay on their homes.
  3. Taxpayers who sell assets must generally pay capital gains tax on any profits made on the sale.

4. Experts Expect Home Price Appreciation to Continue

Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts, and investment & market strategists about where they believe prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

Over the next five years, home prices are expected to appreciate 3.22% per year on average and to grow by 17.3% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

Bottom Line

Some are afraid that home values may have already peaked. However, we believe that purchasing a home now will prove to be a sound financial decision for years to come. As Warren Buffet said, “When others are greedy, be fearful. When others are fearful, be greedy.” If you have any questions about the market or buying or selling a home, please contact us at (360) 303-2734 or email us at info@johnsonteamrealestate.com.