WSU's Real Estate Report

What is going on with the Whatcom County real estate market? Have we reached the bottom? How low will prices go? Is this a good time to buy or should I wait?

These are just a few of the questions that we frequently hear around Bellingham and Whatcom County these days.

Of course no one really knows the answer but most will give you their opinion. If you listen to the popular media outlets you might believe the sky is falling. If you listen to some in the industry you might hear “what housing slump?”

While we certainly are not in a booming market, real estate in Whatcom and Skagit Counties is also not at a standstill.

Matthew Gardner of the Central Puget Sound Real Estate Research Committee with Washington State University states it this way in the executive summary of their Real Estate Research Report.

“It is without question that we are in a state of change as it pertains to our own marketplace. After several years of stellar growth in the residential market, although not record-breaking by more macro standards, we are seeing the effects of the sub-prime debacle hit our area. It would be extremely short-sighted for anyone to believe that we are immune to this national event; however, I would contest that we are currently faring better than the country as a whole, and that we will come out the other side somewhat scarred but not totally beaten. The market continues to move to a substantively more moderated pace of activity as media influenced buyers expect large discounts or fence sit waiting to see where 2008 will take us.”

In this report he goes on to conclude that the report shows a market that is growing and actually benefiting from some of the turbulence that surrounds us. He also states that we tend to lag the U.S. into negative growth and come out of recession at a quicker rate.

One of the final statements that Matthew Gardner makes is a sentiment that we have had for some time now;

“There are numerous consumers imposing a substantive level of self-imposed cautionary posture that can be attributed to the national media’s “doom and gloom” predictions.”

Whether you listen to hyperbole that appears so frequently in the general media or take a more optimistic view one thing is true, Whatcom County’s real estate has taken a slight hit in value and a slowdown in sales activity. The question now is; are we at or near the bottom? As the overused cliche goes “buy low, sell high”.