Whatcom County brokers reported 283 pending sales during the month of April, representing an increase of more than 70% from the same month a year ago. MLS figures show local home inventory has increased 14.3% during this same period, closed sales jumped by almost 15%, and median sales prices dropped nearly 4%.

Homes For Sale Vs. Sold Vs. Pending Vs. New Listing

The following graph compares the number of homes for sale vs. the number of homes sold vs. the number of pending sales vs. the number of new listings, between Feb of 2009 and April of 2010 (click to enlarge).

The Homebuyer Tax Credit Impact

The homebuyer tax credit did what it was designed to do: it helped with stabilizing the housing market, which in turn helped stimulate the economy. You can see how the number of pending home sales rose consistently leading up to the expiration of the homebuyer tax credit, in the graph above.

However, the market remains bifurcated, with the lower end (under $300,000) selling and the high end (over $500,000) struggling. Price is incredibly important, especially when it comes to high-end homes.

There are two types of homes on today’s market: 1) Well-priced homes in good condition that are selling within 60 days, and 2) Over-priced homes that will be sitting on the market a long time.

Moving Forward

Moving forward, local home buyers will continue to experience a purchase power advantage thanks to historically low interest rates and lower adjusted home prices.

2010 So Far

Lastly, here’s a table that summarizes a plethora of local housing statistics for the first four months of this year:

*All reports are published May 2010, based on data available at the end of April 2010. This representation is based in whole or in part on data supplied by the NWMLS. Neither the Board or its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Board or its MLS may not reflect all real estate activity in the market. Report reflects activity by all brokers participated in the MLS.

Western Washington real estate brokers are crediting the federal tax credit and its impending expiration deadline for a surge in home sales last month. Members of the Northwest Multiple Listing Service reported a 63% jump in pending sales during October, compared to the same month a year ago. The other reason for such a surge of sales was that October, 2008, was the first month after the financial meltdown and sales dropped like a rock.

As of this writing, the homebuyer tax credit has been extended to April 30, 2010. You can read more about this here, in a previous article on our blog.

Pending Sales Up

In Whatcom County, pending sales increased nearly 75% in October compared to the same month a year ago. In Bellingham, pending sales increased 63% for October. Lynden was up 63%, Ferndale increased 105%, and Blaine/Birch Bay increased 67%, while Sudden Valley was up 39%.

The new figures show continued signs of some stability in the market and improving consumer confidence. Inventory levels are down about 10% and Whatcom County added about 313 residential new listings in October: about the same as one year ago.

Median Prices Down

The median price for October was $260,000. And, if you add condominium sales, the median price is $251,000. Overall value decreased 7.1% and 5% respectively.

Majority of Activity Under $350K

For the month of October, 80% of residential sales were under $350,000, versus only 71% a year ago. The upper-end market accounted for about 9% of the sales over $500,000 in October, as opposed to 7.7%  in October, 2008.

Interest Rates Remain Low

The weekly average interest rate borrowers were quoted for 30 – year fixed mortgages at 4.87 percent. Rates for a 15-year fixed mortgage were 4.31 percent.

Delinquencies on single-family homes continued to rise at the two big government-sponsored  mortgage lenders, Fannie Mae and Freddie Mac, indicating that problems have yet to level off.

There have been several interesting trends happening in the local housing market as of late. Here’s a look at some of those trends, both for the month of September and year-to-date (compared to 2008 numbers).

Pending Sales Up

In September, Whatcom County’s pending home sales climbed 16.5% over the same results from a year ago (from 254 Pending Sales in Sept. 2009 to  218 in Sept. 2008). September’s performance brings a 9% increase in Pending Sales for the year so far (over 2008).

There are several factors leading to this increase in the number of Pending Sales we’re seeing locally: (1) low interest rates, (2) the first-time home buyer tax credit, and (3) lower home prices.

Closed Sales Down
Fewer Pending Sales are becoming Closed Sales locally, as Whatcom County Closed Sales are down 11.5% this year. The greatest obstacle to closing Pending Sales comes from the bank-owned and short sale properties. Lenders on short sales are taking anywhere from two to four months to make a decision on approving or denying the sale.

Despite the challenges with bank-owned and short sale properties, momentum is picking up in the market. Over the past few months, Closed Sales more closely match 2008 results.

Median Prices Down
The median sales price for a Whatcom County home is $260,000 this year: down 7% from the same time in 2008. In September, the median price slipped 9% (compared to September 2008). The following chart shows year-to-date median home prices in Whatcom County, by city.

The pace of local home sales is slowly but steadily absorbing the excess inventory of homes on the market. We are now at eight months of supply of homes for sale, which is still a buyer’s market, but the lowest since this time last year. The return to a better balanced market will bring back longer-term sustainability in Whatcom County.

Importance of Price
Of all the positive forces in the market, however, none is bigger than price. Where a home is well-priced, we are seeing it move in record time.  When the home is not well-priced, it languishes on the market months longer.  Even then, it sells only after reducing to the appropriate price.

Home sellers can save themselves a lot of headaches by pricing their home right, the first time.

Whatcom County Numbers By Community (year-to-date)

Here’s a year-to-date breakdown of the median price, average price, number of units sold and days on market for each area in Whatcom County:

Bellingham:  Median Price, $260,000 (down 7%); Average Price, $295,000 (down 3%); Units Sold, 662 (down 10%); DOM, 96 (down 3%)

Lynden:  Median Price, $266,000 (down 9.5%); Average Price, $281,000 (down 13.5%); Units Sold, 109 (down 26%); DOM, 115 (down 9.5%)

Blaine/Birch Bay:  Median Price, $221,000 (down 10.5%); Average Price, $266,000 (down, 3.5%); Units Sold, 187 (down 13.3%); DOM, 126 (up 15.5%)

Ferndale:  Median Price, $265,500 (down 8.5%); Average Price, $287,500 (down 7.5%); Units Sold, 188 (down 11%); DOM, 103 (down 3.5%)

Sudden Valley:  Median Price, $240,000 (down 10.8%); Average Price, $249,000 (down 9.8%); Units Sold, 106 (up 2%); DOM,  118 (up 9%)

Mount Baker:  Median Price, $130,000 (down 21%); Average Price, $152,000 (down, 17.8%); Units Sold, 80, (down, 20%); DOM, 93 (down 6%)

Nooksack Valley:  Median Price, $215,000 (down, 11.5%); Average Price, $231,000 (down, 16%); Units Sold, 67 (down, 16%); DOM, 82 (down 15.5%)