The bad news is that Bellingham home prices are down 7.5% in the last year. The good news is that Bellingham, WA home prices are still up 88% over the last 10 years, and still up 203% over the last 20 years. That makes the Real Estate appreciation in this area rank in the 97th percentile nationally!
Today’s current home prices are down 9.6% in Bellingham from the peak, which is really not that bad compared to many areas of the country. Prices are showing some signs of stabilizing, and many are predicting we will hit bottom in the 3rd or 4th quarter of this year, followed by modest appreciation or flat prices for the next couple of years. This is really just a symptom of the 10 year cycle in Real Estate. Being at or near the bottom of home prices, and with historically low interest rates, it is really a great time to be investing in Real Estate.
Home Price chart of Bellingam over the last 30 years.
On a sunny day in Bellingham, the most popular park by the bay has to be Boulevard Park, by a long shot. That is where my wife and I find ourselves the most often. But just below downtown Fairhaven and the ferry terminal, and huddled between the shipyards of Fairhaven, there is another much less popular public park on the water. I have to admit that although I’ve been aware of it, I had never spent anytime there until this last weekend! It is called Marine Park, and it is equally as beautiful as Boulevard, but really has some perks you don’t get at Boulevard, or many of the other more popular Bellingham parks.
For one, it has a nice long beach (Boulevard has a very small beach area). Also, since it is less popular, it is much more quiet as well.
Marine Park has a huge covered cabana area for barbecuing and large gatherings, and really stunning views. There is beautiful views of the San Juan Islands, and then back North across the sound towards Bellingham.
The park does lack other amenities. No sports courts or anything like that. But it is a peaceful setting and an ideal place to come down and read a book, or just watch the sunset.
When working with buyers looking at homes or condos in Bellingham and Whatcom County, they have the luxury of incredibly low interest rates today, lower prices, and more selection.
What has happened though, is buyers expectations have gone up at the same time. Buyers want the $300,000 house for $275,000, or the house that was selling for $600,000 (last year) for $500,000. They want value, which makes sense, and that is what it’s all about!
But even when a buyer finds a good value, he/she still need to consider trade-offs. From the upper end to the lower end, it’s hard to get it ALL. Unless you pick a lot in your perfect location, and custom build it, buyers need to accept that there will be some trade-offs in your search, always.
The sooner the buyer separates needs from wants, the better experience they will have in there home search…And the better decision they will ultimately make. When looking at homes, it can be very emotional, and so it is important to use rational to consider your priorities.
Example being many buyers prefer, new or newer construction. If you want a newer home, you may have to accept less square footage for your money, or a smaller yard, or moving into a development that is not totally established.
If you want a big yard, and more square footage, you may have to seriously consider how much work you are willing to put in. Many times I find solid homes that fit a buyers criteria perfectly, but they can’t get passed the cosmetics, if the finishes/colors are outdated. Many times this may be the perfect match with some updating and personal touches. Also, deciding how important location is to you. Many buyers look at on-line classifieds and look at the houses first, and consider the location later. Often times a better way to search is to use the map search feature, and draw out the areas you’d prefer to be in, and start your search that way.
So in summary, it is best to analyze what trade-offs your willing to accept when considering a move.
Apologize if this is being cliche, but this beautiful home is definitely a one-of-a-kind!
2565 Finkbonner road Bellingham, WA, is a home located in the Gooseberry Point community, which is about 20 minutes to Bellingham, and about 10 minutes to Ferndale. It has a Bellingham address, but is in the Ferndale School district.
The home was originally built in 1954, and then in 1993, completely gutted and remodeled, and a 2nd floor was added at this time as well. The 2nd floor was designed to take in the bay and Island views, and has a beautiful master suite, and an office space, with a neat built-in for a bed (perfect for guests).
So it now effectively offers 3 beds, plus a loft (office and guest bed) and 2 full baths (one up, one down). The foundation, wiring, siding, roof, and most components of the home were re-done to make this effectively a 1993 year built home. Then in more recent years, the current owners updated the home with fresh interior paint, a remodeled kitchen, new fixtures, and also added a gas fireplace.
So what you have now, is an updated home, with all of the modern features (stainless appliances, solid surface counters, master bath, new fixtures, double pane windows) but lots of charm and character through out.
The house also has great outdoor space to entertain, garden, and barbeque. There is a front deck that looks out to the bay, and then a back deck that is more private and goes out to the fenced backyard. There is handi-cap access from the rear deck as well.
The best part of the home, has to be the bay views and the beach. Gooseberry Point has a beautiful sandy beach, and in the summer, it is hard to beat. You will find many clam digging or kayaking, or just walking the beach, and soaking in the view. All of the homes in Gooseberry Point have private waterfront rights to this beach.
Here is a short video clip I made, showing the beach, and the short distance from the beach to the house..The video quality is not great, since this was shot on my cell phone.
You are also just steps to the Lummi Island Ferry, which you can walk on for the 10 minute ride across. Lummi Island offers restaraunts, biking, and much more. It’s just a very neat island to be able to take advantage of.
In this price range, there is always trade-offs. In this case, the trade-off would livingoutside of town and having a 10-25 minute commute.
But if your someone who avoids the “cookie-cutter”, and is looking for value in this price range, or just wants to live by the bay, it is absolutely worth your consideration.
Update 7/1/2010 -Obama has passed into law the extension, so it is official!
For those that entered into a purchase and sale in April, and still have not closed, all of that stress about the looming deadline may not be needed.. The Senate has just gave you more breathing room to qualify for the $8,000 tax credit. The deadline has been pushed back 3 months, from the end of June, until the end of September.
This still needs to go through the house and then approved by the President, but I can’t see a reason why this won’t go through. The Senate passed it with an overwhelming majority, and we need it!
This is potentially great news, since the National Association of Realtors estimates that nearly 1/3rd of the buyers trying to close by the end of June will not close on time. I have clients buying homesand condos in Bellingham that are trying to close later this month as well, and lenders have been totally behind all year long. So safe to say it would have been a disaster if 150,000 to 200,000 would-be buyers lost out on the $8,000 credit because there loan got delayed beyond there control. Bottom line is this was a necessary bill and will definitely cover everyone that had got an offer in by the end of April.
Keep in mind this would not extend the credit for new offers-only existing pending contracts.
We wanted to find another way to give back to the community and help someone in need. With that in mind, I have partnered with John L Scott to once a year, offer to list a home for Free (no listing commission). This is not a gimmick. John L Scott Real Estate and I will take zero commission and zero fees. This is donating time and money to help someone in need, and it’s as simple as that.
We are trying to find a candidate with a specific circumstance, to be sure we offer this service to someone truly in need.
The criteria is as follows:
-A building or property owned by a Non-Profit Charitable Organization.
OR
-A “Distressed” sale. Loss of job, or divorce, or job relocation, or other financial hardship making mortgage difficult to pay.
-Less than 10% equity (difference between how much you owe, and how much your home can sell for). We offer a free market analysis if you’re not sure of how much equity you have.
-Home or Condominium and located in Whatcom or North Skagit County
Things to note:
-This does not include 2.5 or 3% commission offered to buyers agent. If we find the buyer, we will not charge ANY commission (Zero), but if a buyers agent brings an offer, we still offer a commission to the buyer agent/broker.
-If you owe more than your home is worth, this would not qualify for the Free Listing offer. But we can help you sell your home and negotiate a shortsale on your behalf with your lender. Commissions are discounted and usually paid out of closing costs and negotiated during shortsale process.
Example of situation we are looking for:
Seller owes $190,000 on house, but house is only worth about $200,000. Seller can no longer make payments. Paying full commissions would require a shortsale or other distressed sale. With the “Free” listing, seller saves approximately $6,000 in commission. With this savings in closing costs, seller can then afford to sell and payoff mortgage. This may help save some one’s credit, and ultimately payoff the liens they owe on there home.
Due to the time, and costs that go in to marketing a home, we are offering just One Commission-Free listing a year. Right now, the Free Listing for 2010 is available. To inquire, email paulbalzotti@johnlscott.com or call 360.920.5901.
Pending homes sales were way down in Bellingham in May, year over year, and down from April.
This was not a surprise, since many buyers pushed up there purchase a month early in order to qualify for the $8,000 tax credit deadline (of the end of April).
The amount of homes for sale in Bellingham WA, also increased, which is typical for this time of year, but still an increase year over year.
What does this all mean? It means we are in the middle of a mini dip in home sales in Bellingham and Whatcom County, which is a natural effect after just ending a $8,000 tax credit incentive. Expect home sales to improve as we get into the summer, as weather improves and families try to make the ideal move while the kids are out of school.
Whatcom County residents in some stage of foreclosure was 0.86% in April. That’s below Washington’s rate of 1.3%, and well below the U.S. rate of 3.2%. So Washington Real Estate, and Whatcom County specifically, is looking a lot more stable than the national average.
A main reason Bellingham amd Whatcom County homes have a much lower foreclosure rate, is because in our area, we did not have nearly as many fancy subprime loans that became really popular in states like Nevada and California. Also, values have not dropped as much as they have in many areas of the country… So many homeowners who have been unable to make there payments have been able to sell and still get out with a little bit of equity, or through a shortsale.
