1.) I am not sure this article answered the sentence preceding the link “..Bellingham and Whatcom County Real Estate is being increasingly affected by short sales and foreclosures…” In what way is it being affected?

2.) Real Estate prices are still too high in Whatcom. More specifically, too high for this economy. The cost of buying a home is out of balance with incomes, so either incomes need to rise or housing needs to fall. I own a home and hate to say this but it is true…what my home is “worth” greatly exceeds what I paid for it only a few years ago even after the bubble burst. Sure I would want to sell it for as much as I could….but that doesn’t mean it is really worth the so-called “market” price.

3.) Banks or mortgage companies are part of the problem. They make statements that they can’t sell a house for less that xxx, or refuse to sell a home at a loss (which is rather funny since they have insurance to cover this event). They have failed to yield to a simple fact that just because someone bought or paid for a car, home, or anything else….that doesn’t mean it is worth that much in this economy. If I buy a used truck and get a loan for $30,000 and default a couple of months later, that doesn’t mean the truck is (or ever was) worth $30,000. Until banks “let go” and clear the market of these properties ((by selling at reasonable prices even if at a loss to the bank to eager first time buyers)) this market will continue to struggle. But, I am just a lowly amateur economist so what do I know?