The current number of sales pending on homes in Bellingham is equal to last year.  Average and median prices at which homes in Whatcom County sold are higher for the second quarter of 2006 than they were in the first quarter.  We have personally been involved in five multiple offer situations over the past six weeks.  How would you describe that real estate market?On the other hand, there are twice as many homes for sale in Whatcom County as there were a year ago.  Interest rates for a 30-year loan are bumping 7 percent - up substantially over last year.  Houses, on average, are on the market 50 percent longer before selling than last year at this time.  All the articles in the media are talking about softening prices.

The explanation may well be that there are currently two markets operating – we could call them “The Sold” and “The Unsold” – and there are some significant differences between them.

“The Sold” houses are priced competitively with other homes similar to them; they are either in great condition or have some outstanding feature (yard size, location, view, finishes, etc.); they can be in any price range.

“The Unsold” houses are priced above their competitors; they are priced correctly now but started so high that they lost their momentum; they are very similar to many other properties on the market; they may be in any price range.

Judging by the pending sale numbers, there are just as many people in Whatcom County buying as there have ever been, but there is also a pool of latent buyers.  Some of these are the people who have been waiting for prices to drop for the past five years, but some are those who believe the gloom and doom that is currently being published and are waiting for the market to “bottom out.”

Our advice to any buyer?  Follow your heart.  If you love a house, someone else will love it, too. If you won’t pay the price, they will.  Don’t be one of those who are now looking back and wishing they had acted earlier, because the market has passed them by.