Bellingham, Wash.: Signs of stabilization in housing market
— -- Bellingham, Wash., close to Vancouver, British Columbia, may seem off the beaten track. But its natural beauty and city life have attracted many home buyers over the years.
From 2003 through 2006, the housing bubble sat right atop Bellingham, the county seat of Whatcom County. New homes were cranked out at high prices because buyers from California and Canada bought vacation and retirement homes.
The Bellingham bust, however, came in 2007, when new construction permits in the county dropped to 492 from 1,723. Only now are there signs of stabilization: In June, sales in Whatcom County were up 12.2% compared with June 2008.
While home prices remain down, they are not diving.
"By the end of summer, if there isn't another hit, we should be in equilibrium," says Bill Henshaw, chairman of the Whatcom County Real Estate Research Report.
Homes for sale at $300,000 and less are the current hot spot. "That is a seller's market in Bellingham," says J.D. Merris, president of the Whatcom County Association of Realtors.
The county hasn't been beset by home foreclosures, but the tighter credit market has hurt refinancings, Henshaw says.
"The inability to be able to refinance has exacerbated the problems," Henshaw says.
Though Whatcom has major employers, such as Western Washington University and Alcoa Intalco Works, the June unemployment rate was 8.4%.
"The recession hurt us as much as other places," says Joe Giannamore, regional labor economist for the state.
"Wages are slightly lower here," Giannamore says. "But there is a belief that there is a tradeoff between wages and quality of life. And a lot of people come here for the charm and quality of life."
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