For the past 2 years we've talked about how home buyers have retreated from cities like Ferndale, Lynden, Blaine to buy homes in Bellingham. The argument has been that when the economy got bad 2-3 years ago, buyers realized that they could buy in Bellingham for prices they had been paying in outlying cities, so they chose to buy in Bellingham. Also, the price of gas may have contributed to their decision--drive fewer miles to work to save money.

 

To my surprise in the past 2 days, new homes sales in Lynden and Ferndale are booming (relatively). In the past 6 months, for example, 15 new homes sold in Lynden, only 4 in Bellingham. What's that all about?

 

This is only speculation, but it most likely is due to the price of building lots. Builders can buy a nice building lot in Ferndale for $56,000, in Lynden for $70,000, while lots are costing $100,000 or more in Bellingham. Also, for Lynden, there are fewer existing homes for sale to compete with new homes. So, new home construction is Lynden is booming. Didn't expect that. Way to go builders in Lynden.