Home Mortgage Activity Slips in Washington, But Not Severely

It’s no secret that, in recent months, the red-hot housing market has been cooling down. That’s true on a national scale as well as in much of Washington State, the Bellingham Herald reports.

Reports show drops in the median and average home prices in a number of areas accustomed to annual double-digit price appreciation rates. In Whatcom County, Washington, signs of a slowing real estate market have been creeping up, but not to the extreme other places have.

More “for sale” signs are popping up in the county’s neighborhoods as the inventory has increased from 30 days to a more normal six months. It’s taking more time for sellers to unload their homes, particularly those in the $350,000-450,000 price range.

However, there have also been signs of strength in the local housing market for some sellers. For one, mortgage rates remain at relatively low levels. Moreover, the median price continues to rise, and high-end homes, if priced right, continue to find buyers.

“I think the story that needs to be told here is that Washington state, including Whatcom, is behaving differently than most other parts of the country, said Glenn Crellin, director of the Washington Center for Real Estate Research at Washington State University.

“The rise in housing prices came later to this area than other parts of the country, so there wasn’t the same kind of run-up. Now we’re returning to more normal circumstances. Prices will level off, but I’m not anticipating lagging demand.”

It will be interesting to see if Washington State weathers the worst of the housing downturn, or if it starts to feel more like the California housing market, where experts are predicting potentially substantial declines.