Whatcom County & Bellingham Real Estate Market Report – Q3 2025
- Michael Shkurat
- 2 days ago
- 4 min read
A Detailed Breakdown by Michael Shkurat, Your Local Real Estate Expert
The third quarter of 2025 delivered one of the most interesting and dynamic shifts we’ve seen in the Whatcom County real estate market in years. After years of extremely tight inventory and intense buyer competition, the market is now transitioning into a more balanced environment, but with a surprising twist: prices actually increased heading into October, which is highly unusual for the fall-to-winter season.
As someone committed to staying at the forefront of market data, local trends, and strategic insight, I’ve broken down exactly what happened this quarter, and what it means for buyers and sellers heading into 2026.
1. Inventory Has Risen — The Market Is More Balanced
One of the standout charts from the Q3 report is the Months of Inventory graph. In October 2025, Whatcom County sits at 4 months of inventory, compared to 2.7 months in 2024 and 2.6 in 2018. This is a meaningful shift.
What this means:
Homes are no longer selling in a frenzy.
Buyers have more options, reducing urgency.
Sellers must price strategically and ensure their homes are well-prepared.
The market is returning to a healthy balance.
This is not a downturn — it’s a return to balance, something we haven’t seen in several years.
2. Bellingham Prices Have Softened Year-over-Year
According to the Bellingham For Sale vs. Sold price chart, both average list and average sold prices declined Year to Date compared to last year
Median YTD price: down ~3.3%
Average YTD price: down ~3.9%
This modest softening is a natural result of increased inventory. When buyers have more choices, price acceleration cools. However, it’s important to note that homes are still selling, and well-priced properties continue to attract strong offers. The softening is not steep, it’s controlled, healthy, and expected in a balanced market.
3. The Surprise of the Year: Prices Increased from September to October
The most compelling insight from the Q3 data is that Both year-over-year October prices AND month-to-month prices from September to October increased.
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This does not happen in a typical fall market.
Normally, prices flatten or decline heading into the winter season. Instead, the data shows:
Higher average pricing in October 2025 than October 2024
A month-over-month increase from September to October
This indicates the market still has significant buyer demand, even with more inventory on the market. It also signals forward momentum heading into Q1–Q2 of 2026.
This anomaly is a major indicator of underlying market strength.
4. The Luxury Market ($1M+) Continues to Outperform — With Higher Sales, Higher Prices, and Strong Buyer Demand
The luxury market in Whatcom County remains one of the strongest and most resilient segments heading into 2026. When comparing 2024 to 2025:
Luxury sales increased by over 22% year-over-year (254 → 311).
Inventory remained nearly unchanged (140 → 143), showing strong demand outpacing supply.
Bellingham luxury listings rose slightly (61 → 70), but demand remains high.
Average days on market increased from 35 to 51 days, still fast for this price segment.
Price-per-square-foot jumped from $456 to $526, a 15% increase.
List-to-sale price ratio remained strong, with a slight softening from 100% to 98.1%.
What this means: Even as the general market softened and balanced out, the luxury market continued to strengthen. High-end buyers (paying over $1M) are active, well-funded, and decisive. The segment is absorbing inventory efficiently and pushing values upward year-over-year.
This is a clear signal that the luxury market in Whatcom County, especially in Bellingham, remains robust, stable, and one of the most reliable parts of the market.
Spring 2026 Forecast: Stable, Competitive, and Upward-Trending
With rising inventory and surprising late-season strength, my projection for Spring 2026 is:
Expected appreciation: +1% to +4% from late winter into late spring
Bellingham mid-market: +1% to +3% — stable with modest growth.
Whatcom County overall: +1% to +4% — slightly more upward movement due to broader buyer pool.
Luxury Market ($1M+):Still strong, with +2% to +4% appreciation projected.
Market Tone: Balanced, steady, and fueled by stronger-than-expected late-season demand. Spring 2026 is likely to be active, not overheated, but competitively healthy.
What This Means for Sellers
If you are considering selling, the current market offers a strategic window of opportunity.
1. Do not assume winter is slow — buyers stayed active far longer than normal.
The September to October price increase proves demand is still strong.
2. Preparation matters more now than in previous years.
With 4 months of inventory, buyers can be more selective.
Your home needs:
Strong presentation
Pre-listing prep
High-quality photography/video
Clear pricing strategy
Professional marketing
Homes that come to market polished and priced correctly are outperforming the competition.
3. Don’t wait too long if you're planning to sell in 2026.
The early momentum suggests that listing in late winter or early spring will position you perfectly to capture the next surge of buyer activity.
What This Means for Buyers
Buyers finally have room to breathe again, but opportunities vary depending on timing and preparedness.
1. You have more negotiating power than in the past 3 years.
With more inventory on the market, buyers can negotiate repairs, credits, and pricing in some situations.
2. However… well-priced, well-prepared homes still sell fast.
You’ll want a fully underwritten pre-approval and a clear strategy to act quickly on good listings.
3. The increase in October pricing means the window of maximum leverage may be short.
If October momentum carries into spring, competition will increase again .Early 2026 may be the best time to secure a home before prices push further upward.
Final Thoughts
The Q3 2025 market is telling a clear story:
Inventory is rising
Prices softened slightly in Q3
But demand came in stronger than expected heading into October and November
And momentum is building for early 2026
This makes Whatcom County and Bellingham a strategic, balanced market where both buyers and sellers can succeed, if they have the right guidance.
As someone deeply committed to knowing this market at a granular level, I’m here to help you make the smartest, most informed real estate decisions possible.
Whether you’re thinking about selling, buying, investing, or just understanding where things are headed — I’m here for you.
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