It appears the free-fall in local real estate sales is coming to an end, although prices continued to decline last year, according to a new report.
In 2011 Whatcom County real estate agents sold 1,837 homes, down 1.1 percent compared to 2010.
The median price last year was $242,310, down 3.1 percent, the same percentage decline as 2010, according to data collected by Lylene Johnson of The Muljat Group. Johnson analyzed data from the Northwest Multiple Listing Service and used her historical records to put together the report.
While posting a slight decline in home sales for the year, Whatcom County posted a 2.8 percent increase in the fourth quarter of 2011, an indication that prices are reaching a point to attract buyers, she said. The 2011 decline was not nearly as steep as 2010, which posted a 7.9 percent decrease.
"Home sales have stabilized, possibly because prices are lower and people can afford to buy," Johnson said. "I see this potentially continuing into 2012. We'll be in a stable, calm real-estate market for a while."
Home sales were stronger in the larger communities of Whatcom County, including Bellingham, Ferndale and Lynden. Sales were weaker in outlying areas and smaller communities.
The county's median price has fallen 16.4 percent since its peak of $290,000 in 2007. Prices could continue to decline because a larger portion of sales these days are in distressed property, such as short sales or bank-owned homes. However, two factors may slow the decline, according to Johnson - reduced inventory and higher consumer confidence.
The reduced inventory is particularly evident in Bellingham. At the end of 2011, Bellingham had 363 active home listings, putting it around a level last seen in 2004. During the peak at the end of 2006, 540 homes were listed for sale in Bellingham.
Johnson said many potential sellers have taken homes off the market until the real estate climate improves, but even so she believes inventory is relatively low because so few new homes have been built in recent years.
Some new home construction occurred last year in communities such as Ferndale and Lynden, leading to the stronger sales numbers, Johnson said. She expects new home construction to continue at a steady pace in those areas in 2012, while Bellingham will not see as much because the price of undeveloped lots remains expensive within the city limits.
In a separate report, the NWMLS reported Whatcom County real estate agents sold 170 homes and condominiums in December, up 4.9 percent compared to December 2010.
The median sales price, average sales price, number of units sold and average days on the market (DOM) before a sale for Whatcom County and individual communities for 2011, with percentage comparisons to 2010, according to information from Lylene Johnson of the Muljat Group: | ||||
| Community | Median price | Avg. price | Units sold | DOM |
| Whatcom County | $242,310, -3.1% | $272,689, -4.5% | 1,837, -1.1% | 144, +5.9% |
| Bellingham | $264,250, -4.9% | $317,874, -4.9% | 806, +1.9% | 122, +5.2% |
| Blaine/Birch Bay | $205,900, -0.9% | $244,347, -7.9% | 241, -4.4% | 179, +11.2% |
| Ferndale | $246,000, -5.6% | $263,107, -2.4% | 269, +4.7% | 158, +10.5% |
| Lynden | $258,900, -1.1 % | $281,747, -1.4% | 183, +1.1% | 150, +18.1% |
| Mount Baker | $58,000, -49.1% | $111,826, -10.2% | 124, -0.8% | 149, -12.9% |
| Nooksack Valley | $194,500, -16.2% | $210,660, -12.1% | 75, +8.7% | 171, -15.8% |
| Sudden Valley | $190,000, -20.2% | $217,074, -11.6% | 101, -21.1% | 134, +12.6 % |
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