With home prices up 8% in Bellingham just in the last 3 months, the biggest question of course is when are things going to slow down?
Seasonally, the summer is when we usually see the highest level of re-sell listings, which in turn means less multiple offers compared to the spring. That should be the case this year, but we currently have a massive shortage of single family new construction starts in Bellingham and throughout Whatcom County. And while many development projects are in the works in Blaine, Lynden, Everson, Ferndale and even Maple Falls, none of those projects are starting soon enough to meet the demand we are seeing right now.
The demand is coming from relocation buyers moving here from Seattle, California and other parts of the country that can now work remotely. It is also coming from interest rates that remain near 3%.
And even with new construction on the way in Whatcom County, we still do not have the new construction starts to match demand for Bellingham. And that is the primary reason I don’t see home values going down anytime soon in Bellingham. In fact, unless the city drastically changes zoning and permitting to spur more single family construction, Bellingham is more likely to continue to appreciate well into the future.
I have wrote more about the new construction supply and demand issues at our company blog here: https://bellinghamrealestatestories.com/the-bellingham-washington-real-estate-market-needs-new-construction-supply/