A statistic that realtors use to assess the market is "months of inventory". Generally, we don't discuss it with buyers and sellers because it's difficult to understand what it means to them. It is defined as follows: amount of inventory for sale divided by the average monthly consumption (sales). For example, if 100 homes are for sale, and homes are selling at a rate of 10 per month, there is 10 months of inventory.

 

The "rule of thumb" for months of inventory is:

 The graph on the left shows months of inventory for Whatcom County. Months of inventory has decreased considerably. However, at 7 to 10 months of inventory, it is stlll a buyers's market, and prices continue to drop in the county.

 

The graph in the right shows months of inventory for Bellingham. Months of inventory has decreased considerably and is now around the magical transition point of 6 months of inventory. So Bellingham is neither a buyers' market or a sellers' market. It is in a balanced state where prices are stable. In contrast to the past year, this is very good news. Home prices seem to no longer be dropping in Bellingham. They do, however, continue to drop in the county. This is supported by anecdotal evidence.

 

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