As we progress through 2024, Whatcom County's real estate market reflects a slowly changing market with prices that are up, listings that are up, and sales that are up from the prior year. Buyers are showing the ability to absorb the higher prices. The stats shown we are definitely getting into the slowest time of the year.
Rising Home Prices
Median home prices in Whatcom County have increased over the past few years, with 2024 showing higher prices than 2023, but as we head into the slow season, prices are dropping. The median was $605,000, but the three month average was $638,000, which is more meaningful. It was 9.4% higher than the prior year.
Inventory Levels: More Homes for Sale
The number of homes for sale in Whatcom County has increased in 2024, with a peak inventory of 580 homes mid-year. Compared to previous years, 2024 inventory levels align closely with 2019 but are notably higher than levels in 2020, 2021, and 2023. This increase in available listings provides more options for buyers, possibly easing competition slightly.
Higher inventory levels can lead to more balanced conditions, giving buyers more leverage in negotiations. However, this effect varies by price range and location. The number of sales has increased as well, which shows that supply and demand is in balance.
Months of Supply: A Gradual Increase
Months of supply, a metric indicating how long the current inventory would last at the current sales pace, has gradually increased throughout 2024, reaching 2.9 months by October. This is a marked change from prior years, where supply levels were generally lower, often under 2.0 months in 2021 and 2022, reflecting a more competitive, seller-favored market.
An increase in months of supply suggests the market is shifting toward more balanced conditions, where neither buyers nor sellers hold a dominant advantage. While 2.9 months still leans slightly toward a seller’s market, it is a move towards equilibrium, indicating that buyers may experience less pressure to make immediate offers and can take more time to evaluate properties.
Pending Sales: A bump in October
Healthy demand is shown in the results for October with 208 pending sales, but this has bounced around from month to month.
Conclusion
The Whatcom County real estate market is resilient and even with interest rates back up to 7%, home prices remain elevated.
The graphs below show the other market indicators from the Northwest Multiple Listing Service.
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