Overall, home sales in Bellingham have become very good. But a simple analysis reveals that most homes sales are below $400,000; in fact, most are below $300,000. For homes sales below $300,000, it is a seller's market--there are not enough homes in that price range to supply the demand to buy them. This has resulted in some stability in price. But the stability is softened by the number or foreclosures and short sales (distressed sales). In contrast, homes sales above $400,000 are very weak. Typically, homes listed at $700,000 or more are selling for much less, sometimes as much as $100,000 less.

 

The graph on the left shows homes for sale and homes sold below $400,000. Notice that the number of homes sold is about 40% the number of homes for sale. That defines a seller's market.

The graph on the right is homes for sale and sold above $400,000. Notice that the number of homes sold is about 15% the number of homes for sale. That defines a buyer's market.