Whatcom County Housing Market: Continued Softening

The Whatcom County housing market is soft compared to recent years, although homes remain unaffordable for many buyers. The number of homes for sale at this time of year is at its highest in 10 years. The months of supply is at its highest in 10 years, but it is a balanced market, not a buyer's market.

Median home prices remain elevated, but price growth has come to a halt. Based on the 3-month moving average, the median residential home price is currently $634,000. Notably, the median home price in April was essentially unchanged from four years earlier. That is a meaningful shift from the rapid appreciation seen during the pandemic-era housing market and suggests that prices have largely flattened rather than continued to climb.

New listings have increased this spring, giving buyers more options than they had during the tightest periods of the market.

The number of homes for sale is one of the clearest signs of softening. There have not been this many homes on the market at this time of year in roughly 10 years. This does not necessarily mean the market is weak, but it does mean buyers have more choices and sellers are facing more competition.

Months of supply has also moved higher and is at its highest spring level in about 10 years. This points to a less frenzied and more balanced market than we saw during the very tight conditions of 2021 and 2022.

At the same time, demand has not disappeared. Pending sales have improved through the spring, suggesting that buyers are still active, even if affordability is limiting some demand.

Closed sales are generally tracking in line with recent years. This reinforces the idea that the market is softer than the peak years, but not stalled.

Despite the softening market, homes still are not affordable for many buyers. The Whatcom County affordability index is at 63, meaning the median household does not have enough income to comfortably afford the median-priced home under the assumptions used in the index. Although affordability has improved somewhat from the recent lows, it remains weak by historical standards. The median price is $634,000, but the average household can afford $400,000.

Overall, the market slowly continues to soften. More listings, higher inventory, and the highest spring months of supply in about 10 years are giving buyers more leverage than they have had recently. However, elevated prices and higher mortgage payments continue to create affordability challenges. For many buyers, the market may feel a little less competitive, but that does not mean it feels affordable.