The beginning of 2018 started quietly for Whatcom home sales, but it could be leading to a busy spring season.
Local real estate agents sold 217 houses and condominiums last month, slightly off the pace of 224 sold in January 2017, according to data from the Northwest Multiple Listing Service. While the number of homes sold decreased, the January median price soared 20 percent to $345,000. January is typically the slowest month for home sales, so the median price of those homes sold can vary more widely compared to later in the year.
Inventory is expected to increase and interest rates are expected to rise which will make things interesting this spring. The 30-year mortgage rate has steadily risen in recent weeks to around 4.5 percent, the highest level in four years.
Brokers expects it to be a busy home-buying spring and summer in Whatcom County, despite the rising interest rates. The high rents, particularly in Bellingham, will continue to motivate people to buy before interest rates go up – some expect interest rates to be 4.75 percent by the end of summer.
Inventory remains an issue for Whatcom County real estate – it had 485 active listings last month, down 6 percent compared to January 2017, according to the data.
More people are preparing to list homes between March and June.
A combination of increased home construction and demographics should translate to more inventory this spring. The average amount of time someone owns a home is around seven years, so people who bought at the last real estate peak in 2007 but saw the bubble burst may be ready to put their homes on the market.
Inventory is also a problem across the state, according to the NWMLS. Across the 23 Washington counties it serves, home sales in January were down 9.3 percent while the median price of the homes sold rose 11 percent to $363,500.
The decline in sales last month can’t be blamed on the holidays, weather or football. It’s simply due to the ongoing shortage of housing that continues to plague markets throughout Western Washington.
Dave Gallagher: 360-715-2269 , @BhamHeraldBiz
