How Many Homes Have Pending Offers?

Homes by EmailThe 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, January 19th, 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 28%

The Lynden pending ratio was 36%

The Sudden Valley pending ratio was 56%

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

Bellingham Real Estate Market Update & Happenings!

Market Snap Shot Jan 18

As we look into our real estate crystal ball, the question always is “so where have we been & where are we going?”

The “where have we been part” is pretty simple as it’s already logged into the history books. Closed Bellingham residential sales for 2017 were 1042 homes as opposed to 1145 homes in 2016. The median sales price for a home in Bellingham in 2016 was $363,465 as opposed to $393,249 in 2017. We are started the year off with approximately 111 active listings with an additional 79 homes pending as opposed to 193 active listings a year ago with, at that time, 86 pending listings.

So with that in the rear view mirror, what does the road ahead look like & what are some of the chuck holes in the way that could throw a monkey wrench in things?

First, we have a new Tax Code.  As it was initially stated, it had all of the real estate pundits up in arms, but as it went through the Congressional “Grinder” it was trimmed down to the point where it may not have the negative impact people initially felt.  Now in the interest of full disclosure, even though I graduated fairly high in my class at the U of W (sorry Cougar fans), accounting was not necessarily my bailiwick.  Even if it was, I’d ask you to consult with your personal accountant or financial planner to see how it impacts you personally.

So “Where are we headed in 2018”? 

A local lender posts a current 30 year fixed rate of 4.125%.  All indications are that rates will increase in 2018 with Freddie Mac projections to 4.6 in the 4th quarter of 2018.

Population data indicates that between 2010 and 2016, Whatcom County has seen a significant increase of people in their 60s and 70s. During the same time there’s been a decrease in the number of people in their 20s and 40s

A recent article in the Bellingham Herald quoted Zillow Economists as predicting a 3.1% increase in Bellingham home prices over the next 12 months, saying that the hottest neighborhoods ie: Lettered Streets, will have a 12 month increase of 4%, the York District an increase of 3.8% & the Columbia District of 3.7%.

As of today’s date, there are 87 residential homes pending in Bellingham.  Of this number, 34 pended within 5 days or less of the list date.  While we won’t know until the homes close, my guess is that with the quick pending dates, the probability is that the homes sold in excess of their list prices.  In the past 30 days, 69 residential homes sold.  Of that number, 27 sold either at or greater than their list price.

With that ground work, from what I hear on the streets, in my open houses & see statistically, I think, in Bellingham,

  • Inventory will remain at historically low levels.

 

  • While rising interest rates will make it more difficult for entry level buyers to find homes, it will have less or no effect on an older population that appears to be moving into the area & many times buying without the need of a home loan.

 

  • As climate change affects other parts of the US, our weather & lifestyle in the Pacific North West will be more appealing to others, causing them to move in increasing numbers.

 

  • Demand for Bellingham real estate will continue to outstrip supply resulting in increased prices. Quite frankly, I think the increases we experience will outstrip those projected by Zillow’s forecasters

In a nut shell, prepare for more of the same from our fast & furious real estate market.

If you have questions about the market in general or about your property specifically, Mike, Fawn & I would be happy to help you any way that we can.

 

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.

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Bellingham Home Worth

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!