This graph shows one of the primary metrics of Bellingham’s real estate market: the number of months of inventory. It dates back to October 2008, and it doesn’t take a Harvard educated economist to tell it’s been on a steady decline.
Look, for example, at November 2008. In that month Bellingham had 13.3 months of inventory. A basic way to interpret it would be to say that in that month, for every 13 houses listed, one was selling.
Now look at November 2009, and you’ll see we had 5.1 months of inventory. One sale for every 5 listings. Anything better than 6 is considered a seller’s market. 5.1 is solid!
No question, November ’09 was a hot, HOT month. THICK were the fears that the first time home buyer tax credit was about to expire. It’s estimated that, nationwide, fully HALF the homebuyers in November will be applying for the tax credit. Of course, you know it’s been extended. Now, you have through April 30th to be under contract. The tax credit also now includes a $6500 credit for existing homeowners who sell after at least 5 years of ownership before buying.
Months of inventory is also important for a seller to know, as it shows how much competition exists. If you were selling, would you rather go up against 13 other houses, or 5?
