
Despite dual headwinds of stubborn mortgage rates and election uncertainty, the real estate market in Whatcom County remained strong in 2024. Residential sales (not including condominiums or manufactured homes in parks) increased county-wide by 7.6% to a median sales price of $635,000, and Bellingham’s median price jumped by 8.8% to $775,000. All areas saw an increase in sales price, while the number of closed sales remained very similar to 2023. The results are summarized below:
Area Median Price Closed Sales Days on Market
Whatcom County $635,000 (+7.6%) 2,278 (+1.6%) 15 (+0.0%)
Bellingham $775,000 (+8.8%) 693 (+2.26%) 7 (-12.5%)
Sudden Valley $573,000 (+1.6%) 135 (+2.3%) 10 (+11.1%)
Ferndale $637,450 (+6.3%) 344 (+3.3%) 16 (-5.9%)
Blaine / Birch Bay $618,000 (+11.4%) 355 (+0.3%) 21 (+5.0%)
Lynden $685,000 (+6.8%) 200 (-2.0%) 21 (-4.5%)
Buyers who had been waiting for falling prices or rates were disappointed on both fronts, and will likely be faced with the same prospect in 2025. Demand continues to outpace supply, both in new houses being built, and from existing homeowners reluctant to sell and give up the record low rates they locked in a few years ago.
Mortgage rates are forecast to stay in the “new normal”. The Mortgage Bankers Association released their forecast for housing and mortgage rates at the end of the year. They see rates in the mid-6% range through 2026 (and possibly 2027). On a more positive note, they show home sales and new mortgage originations growing steadily during this period, indicating an influx of homebuyers who are unwilling to keep waiting on the sidelines for better news while prices continue to climb further out of reach.
Additionally, the Fannie Mae conforming loan limits have increased for 2025. The economists at Fannie Mae have approved an increase of 5.21% for Whatcom County, to a conforming (non-jumbo) loan limit of $806,500 for a single family residence. This is a positive sign for future home values, and an indication that we are not moving toward a declining market.
My advice to buyers is to get off the fence and get into the market. Everything always seems expensive when you buy, but when you look back ten years from now you will be glad you jumped in when you did. Don’t beat yourself up over prices or rates that got away. As is still the case, “The best time to plant a tree was 20 years ago. The second best time is now.”