Northwest Living | Bellingham Real Estate Market

“5 superstar cities should outperform the rest of nation over time, thanks to healthy economies and rising incomes.” It’s believed that even if markets like Seattle do experience a small downturn in prices, the long term trend will outperform most other big markets over time.  Seattle, WA and the Puget Sound in general from Vancouver, BC to Portland, Oregon are very desirable areas to live.  With the land restrictions in place, there just isn’t much area to build new homes on.  This fact, along with the areas strong employment figures, positions the Puget Sound area for good long term growth in the housing sector.It’s believed that even if markets like Seattle do experience a small downturn in prices, the long term trend will outperform most other big markets over time.  Seattle, WA and the Puget Sound in general from Vancouver, BC to Portland, Oregon are very desirable areas to live.  With the land restrictions in place, there just isn’t much area to build new homes on.  This fact, along with the areas strong employment figures, positions the Puget Sound area for good long term growth in the housing sector.I’ve always believed that when the real estate market toughens up at times like this, it’s best to be in an area of high demand.  I call it the “ripple affect”…If you drop a rock in a pond, the ripples are largest at that spot and get smaller as you go farther out.  For instance in my market, Bellingham is the most sought after real estate in Whatcom County.  The farther you go out from Bellingham, prices tend to be softer, for the most part.  We do have some secondary markets like Lynden, Ferndale and Birch Bay that hold their own.  However, in general Bellingham is the center of our market (pond).

It’s believed that even if markets like Seattle do experience a small downturn in prices, the long term trend will outperform most other big markets over time.  Seattle, WA and the Puget Sound in general from Vancouver, BC to Portland, Oregon are very desirable areas to live.  With the land restrictions in place, there just isn’t much area to build new homes on.  This fact, along with the areas strong employment figures, positions the Puget Sound area for good long term growth in the housing sector.I’ve always believed that when the real estate market toughens up at times like this, it’s best to be in an area of high demand.  I call it the “ripple affect”…If you drop a rock in a pond, the ripples are largest at that spot and get smaller as you go farther out.  For instance in my market, Bellingham is the most sought after real estate in Whatcom County.  The farther you go out from Bellingham, prices tend to be softer, for the most part.  We do have some secondary markets like Lynden, Ferndale and Birch Bay that hold their own.  However, in general Bellingham is the center of our market (pond).So it’s reasonable to speculate that markets like Seattle, Portland, San Francisco, Boston & Los Angeles should in the long term do very well.  The standard of living is high, employment is great in these areas and there’s a lot of money flowing through these areas of the country.

Limits on the supply of new land and buildings factor heavily, but even more important are trends in household income. According to the study, prices are likely to keep climbing in cities where poor and middle-class households are being nudged out by rich ones. The phenomenon skews prices higher than the national average because more dollars are chasing fewer properties.

According to Joseph Gyourko, who coauthored the study with Sinai, living in these areas is akin to owning a scarce luxury good.  Via Business 2.0 Magazine.

Jerry Campbell - Bellingham WA Realtor - The Muljat Group - Bellingham, WA 98225