January 16, 2025

Reviewing the Whatcom County 2024 Housing Market

The housing market in 2024 was a dynamic and ever-changing, presenting both challenges and opportunities for buyers. In a recent podcast, industry experts Katty Baldwin and Paul Balzotti shared valuable insights on how buyers have successfully navigated this complex landscape, offering strategies and tips that could continue to be relevant as we head into 2025. Whether you’re in the market to buy or just curious about the trends, here’s a breakdown of the key takeaways from the discussion.

Seasonal Market Trends

The housing market in 2024 saw fluctuating trends, particularly in home sale prices and the ongoing issue of affordability. At the start of the year, buyers were faced with higher home prices and interest rates, creating a sense of uncertainty. Yet despite these challenges, the lack of supply and strong demand created many multiple offer situations in the spring of 2024, and home values surged 5%. Home values then remained relatively flat throughout the summer and winter, and by the year’s end, 49% of home-buyers negotiated a lower price or closing costs credit on their purchase in 2024.

Successfully Helping Clients Purchase Homes in a Competitive Market

Katty Baldwin shared several success stories of clients who managed to successfully purchase homes in 2024, despite the hurdles. By focusing on the right areas, leveraging available resources, and having a strong understanding of market conditions, buyers were able to find homes that suited their needs and budgets. One key takeaway? A well-planned strategy and the right guidance can make all the difference in a competitive market… even in a low inventory environment.

Supply & Demand splits at the $750,000 mark.

In Whatcom County, the housing supply has been a major factor influencing the market. With inventory remaining relatively low, competition for homes has intensified. As of January 2025, there is a 3-month supply of homes for sale. That is essentially a balanced market, but there is a split at the $750,000 mark. The supply has surged to a 5+ month supply over $750,000 (a buyers market), while under $750,000 remains less then a 2-month supply (sellers market).

Market Overview: Housing Trends and Affordability Challenges

As of 2024, the Whatcom County housing market has been grappling with affordability challenges. Home prices have remained elevated due to high demand and limited supply, a trend that has continued throughout the year. Buyers have had to adjust their expectations and strategies to cope with the reality of these rising costs.

Whatcom County 2024 Housing Stats:

• Median Home Price: The median home price in Bellingham and Whatcom County has seen a significant increase from previous years, now hovering around $580,000 as we enter 2025.
• Home Sale Trends: While the number of homes sold has been flat (increased less than 1%), home values were up approximately 5%.  The market has remained competitive in many areas of the county, particularly in the city of Bellingham and surrounding neighborhoods.
• Inventory Levels: The supply of inventory is hovering around 3 months entering 2025. But between $500k and $750k, where the most sales are occurring, the supply is only 1.5 months. This limited supply has intensified competition, especially for well-priced homes in desirable locations. With fewer homes available, our forecast is that we expect bidding wars and multiple offer situations on many well-priced homes this spring.
• Interest Rates: Rising mortgage rates have been one of the primary contributors to the market’s slowdowns. Entering 2025, the average 30-year fixed mortgage rate has hovered around 6.75%. Interest rates will play a key role in how much the market grows in 2025.

Despite these challenges, opportunities still exist, especially for buyers who know where to look and how to position themselves in a competitive market.

Looking Ahead to 2025

The 2025 John L. Scott Housing Forecast for Whatcom County predicts slow and steady growth in both home sales and home values. Reviewing the 10-year home cycle, 2021-2023 saw slower sales compared to historic norms, and most economists agree that sales should slowly increase in the coming year.

Conclusion: Buyers Can Still Find Success

Although the 2024 housing market in Whatcom County has presented numerous challenges, the opportunities remain for buyers who are knowledgeable and prepared. Whether you’re buying in Bellingham or in a more rural area, working with a professional like Katty Baldwin can provide you with the insights and strategies needed to make an informed decision.

For more guidance on the current market or if you’re considering buying or selling in Whatcom County, you can reach our experts here.

With the right preparation and support, 2025 could be a great year to make your next move in the housing market.

Incorporating local statistics and real-time insights ensures that buyers in Whatcom County are better equipped to face the unique challenges of 2025 and beyond. Stay informed, stay prepared, and be ready to seize the right opportunity.