Why Columbia is one of my favorite Bellingham neighborhoods

Excuse me in advance but I’m going to gush for a minute about one of my favorite neighborhoods in Bellingham: Columbia!

This neighborhood is known for having a super strong sense of community. People who buy in Columbia tend to stay there for a very long time. There are many families in Columbia, but there’s also a ton of people that are retired; many folks have raised their kids in that neighborhood and still own, love and enjoy their homes. There are kids running around everywhere.

Ice cream trucks love to visit the streets of Columbia in the summertime.

People also love their dogs in this neighborhood. After hours, the playground at Columbia Elementary (a stately brick building situated in the middle of the neighborhood) becomes an off-leash dog park. While kids swing and slide on the play equipment, dog parents throw balls for their furry kids, and simultaneously everyone tends to socialize.

Playground at Columbia Elementary

Playground at Columbia Elementary

Walkability of the Columbia Neighborhood

Depending on where you live in the Columbia neighborhood, you will be walkable to downtown. I’ve walked from Columbia to downtown in about 20 minutes. Get on your bike and it will takes 5 minutes.

Restaurants in the Columbia Neighborhood

Goods Local Brews (a local tap house with a taco food truck reliably parked on-site) is located in the neighborhood, as well as Elizabeth Station (best pizza!) and Narrative Coffee. You’re also walkable to the restaurants and breweries on Meridian Street in the Fountain District, including Zeeks Pizza and Diamond Jim’s (a greasy spoon brunch spot).

Goods, the best place to grab a casual beer and tacos… or in December, buy Christmas trees!

Parks in the Columbia Neighborhood

Elizabeth Park is a large park that sits at the entrance of the Columbia neighborhood. There’s playground equipment, tennis/pickleball courts, and a lot of open space for walking or picnicking while you enjoy a beautiful and charming canopy of mature trees. Other parks include Carl Lobe and Lorraine Ellis.

Home Prices in the Columbia Neighborhood

The desirability of the neighborhood translates into a higher median sales prices than some other neighborhoods in Bellingham. The average sales price in Columbia in 2023 was $758,000, about 20% higher than the average sales price of Bellingham as a whole. Also, while there are some large historic stately homes (especially bordering Elizabeth Park), there’s also a lot of small bungalows. And people will get very creative in how to fit into said tiny bungalows! People sacrifice space (large closets, extra bathrooms, usable garages) for the neighborhood vibes.

A Day in the Life - in the Columbia Neighborhood

Below is a short video that features me and my dog running around some of the aforementioned favorite spots of Columbia… enjoy!

If you want to learn more about some of my favorite neighborhoods in Bellingham, please don’t hesitate to reach out. I love to share my knowledge.

Also, feel free to follow me on Instagram for more Bellingham life and real estate content.

Predictions for 2023

Interest rates are higher than they were a year ago and it's definitely impacting our local real estate market. We've had about 8% decline in median home price since summer of 2022 when our real estate had its peak.

So what's 2023 going to look like? Will this be a more prolonged market correction with further declines in 2023? If you are looking to buy in the next year, should you wait another 6-12 months? 

It's difficult to make predictions but I try to take all the puzzle pieces and give each person advice based on their own unique situation. I'll share some numbers that might provide a helpful framework.

Inventory

As of late last week, we had 117 homes for sale in Bellingham. (Under 100 if you look at Bellingham-proper.) So, the options for buyers are still not plentiful. But, last year at this time, we had about half this many homes on the market. It's all a matter of perspective.

The last time we saw this residential inventory this high in Bellingham was in 2020. But back then, buyer demand was also higher; we had 2.75% interest rates and buyers were fleeing Seattle to our "Zoom town" during the Covid shutdown. There's a different energy out there right now.

Until recently, the overall trend of inventory levels in Bellingham has been declining. In fact, up until recently, inventory levels have been steadily declining in Bellingham -- for the last 10 years.  Why? Bellingham is finally on the map. In addition to the influx of people moving to our community, the people that were already here know that it's a pretty special place and they haven't wanted to part with their real estate holdings. They know that building is difficult here, and we aren't building very many new single family homes.

Appreciation

Real estate appreciation in Bellingham is typically steady and high. In fact, Bellingham has enjoyed over 9% appreciation per year over the last 10 years, putting it in the top 10% markets nationally for appreciation. For this reason, if people can swing it, they'll hang on to their property when they upgrade, which leaves less on the market for people trying to get into the market. 

Krista’s Prediction

My prediction is that we will either hold steady in 2023. I think our market correction has mostly happened. If we see further decline it will almost go unnoticed. It's worth noting that 44% of economists believe the FED will lower rates later this year. If this happens earlier than expected (like, in the 2nd or early 3rd quarter), I think we’ll see minimal appreciation (3-5%) in home values this year.

I don't think the traditionally charming or super cool homes in super desirable neighborhoods (think South Hill, Edgemoor, Columbia) will see much of a decline in value, if anything at all. I do not think Bellingham's waterfront properties will be affected. Certain properties will continue to get quick offers, multiple offers, and will support Bellingham’s median home value.

When interest rates show a slight steady/downward trend, I predict we will quickly go back to a heated housing market. The job market is super hot right now. Unemployment is at historic lows. Employers cannot find enough employees to fill their positions. Consumer demand is still there, inflation is bonkers. The Feds have raised interest rates to cool the job market, inflation, and the overall economy. When we see signs of the rate hikes working, interest rates will likely drop and Bellingham's market will heat up (red hot!) again.

In summary, we've seen about an 8% drop in median home price since the peak of 2022. When interest rates go down (which is expected later this year), I think our market will quickly heat up again. I believe Bellingham will continue to stay in the top 10% nationally for appreciation, and real estate here will continue to be a solid investment over the next 10 years.

Market Update: Seller Concessions Are Now the Norm

Interest rates are more than double what they were a year ago and many buyers are paralyzed.

But did you know? Right now almost every new contract coming across our desk includes "seller concessions"— meaning, sellers are contributing cash out of their proceeds to help the buyers with their closing costs, which can include, buying the rate down.

Sometimes the "buy downs" are fixed, and sometimes they're graduated Temporary Buy Downs. Here's how the Temporary Buy Down works:

My buyer client purchases a $750,000 home. Their loan is $562,000. Let's say I am able to help said buyer get $30,000 in seller concessions. Buyer uses these funds for a Temporary Buy Down. The note rate is 6.5% but with this buy down...

- 1st year rate = 3.5% (a savings of over $1000 per month on their mortgage)
- 2nd year = 4.5%
- 3rd year = 5.5%
- 4th year it would go to the note rate—at which point we all hope rates are lower again and buyer can refinance (don't expect 3% though!).

If this buyer refinances before all of the $30,000 Temp Buy Down funds are used, the leftover funds will go towards the payoff of their loan.

So all of this is to say, there are options if you want to make a move. In addition, escalations are rare, inspection contingencies are common, and offers contingent on the sale of your current home are plausible... It's not all bad out there!

Best time of year to sell

“What is the best time to list my home? ”

— Almost Every Seller

I get this question a lot and even though many real estate agents consistently claim it’s a “great time to sell!” there has to be a BEST time, right? I believe there is a better time of the year to sell, and it might surprise you.

It’s less about green grass and bright flowers. It’s less about weather or the school year ending. It’s largely an inventory question, so let’s dig into the numbers.

This is kind of crazy, but in Bellingham, we have almost three times as many houses for sale right now than we did earlier this year!

A similar trend occurred in other areas across Whatcom County:

It’s not surprising that Days On Market (a metric we often track to assess the market we’re in) is also creeping up. Which means the window of opportunity for buyers to negotiate opens wider. Whether that negotiation is price-related, or inspection-related or other, it can translate into dollars lost for sellers.

But it’s also important to acknowledge that the real estate market is hyper local, and just ONE week can drastically change the inventory we see in the market. If three sellers go to market in the same neighborhood in the same week, you can almost guarantee that it will diffuse the market, making it less advantageous for those sellers. And how could you predict (other than having a broker who networks and often knows what’s coming)? ;)

This is one of the reasons that stats can be misleading. We have to draw big picture conclusions and commit to refreshing the strategy based on what’s going on around us at the time. But I still think the numbers are valuable— especially since this is a trend that has been around year after year.

So here it is, the golden nugget…free to all of you eager readers. I have had the busiest, most frenzied listings in February…right after buyers get out of the holiday zone and into an excited “spring is coming” mindset…and while most sellers are still waiting for their lawns to green up and their flowers to bloom. Sellers who beat the rush of inventory and list earlier in the year have tended to have more offers, higher escalations and fewer contigencies to navigate.

While hyper local market dynamics make it difficult to unequivocally state the best time to list your home, it's interesting to look at inventory trends to try to time new listings to minimize competition and maximize bottom line. In recent years it’s been a case of: the earlier in the year, the better!

Just Sold: 2317 Crestline Dr (Alabama Hill)

2317 Crestline Drive | 4 beds | 1.75 baths | 3,600 sq ft

This one came in hot! Showings were non-stop, and the open house was probably my busiest one ever.

In the end, multiple offers resulted in a sale that was $80,000 over list price.

Staging specific to the era of the home helped show buyers what this estate sale property could be. Did you know a lot of times I do my own staging, especially for mid-century homes? It’s my thing!

My listing strategies are fueled by over a decade of real-world marketing experience across multiple industries. It’s all about envisioning the target audience for the particular home at-hand, and crafting the marketing strategy. The tactics often include the right messaging/copy (I obsess over language!), appropriate staging, impactful video/photography, and maximizing digital/social opportunities). It’s also about leveraging the pre-list services, regional/national broker networking, and powerful digital platforms that Compass has to offer.

I have to admit that I’m kind of excited that the market is shifting to a more balanced market because as days on market wrack up, sellers will find more value in a true marketing professional.

If you’re thinking about selling and want a similar level of service, don’t hesitate to reach out!

Behind the Scenes - Before & After Photos

My absolute favorite part of my job is a good before and after!

This mid-century home was a quality build and well taken care of, but cosmetically needed some help before list.

The family of this estate took my recommendations on a few key cleanup and easy upgrades which included landscaping, removing a screen door and trellis, interior paint, new flooring in living room and bedrooms, and a few other small items.

First, I helped them pick out the right flooring and paint color. We needed a warm white, and an inexpensive flooring that would tie a bunch of finishes together. We kept as much of the original finishes as we could, not only for cost savings, but also because there is absolutely a market for original homes! (Renovate don’t replace! Many buyers are looking for that well-kept, authentic mid-century feel.)

Then I came in to stage with my mid-century furniture. (And I might have wallpapered a bathroom…) The goal was to help buyers see that this home is beautiful as-is, and very move-in ready.

Above: this walnut frame was nailed to stucco finished walls, so it had to stay for now, and we had to help it make sense on the cheap. Hmmm…how ‘bout using the leftover wallpaper??

Admittedly, it turned out a little weird for real life purposes….but for this, it sort of set the tone right away… “Welcome, and please enjoy this fun, whimsical vintage experience!”

I also had fun transforming bedrooms…from creepy pink to cute pink!

And tried to figure out how to really capitalize on the coolest features of the home, like architectural windows...

I am happy to say that after taking my advice and spending 2 months and $22k to make it happen, we closed for $150k more than what they were originally told they could expect to get for this home. We listed for $535k, received 4 offers and closed $90k over list price. Everyone, including the buyer, is thrilled!

Just listed: A mid-century dream

200 Cedar Street | 3 beds | 1.5 baths | 1,760 SF

I am happy to present this sweet mid-century rambler for its first time on market!

It’s houses like this that can inspire you, as you are transported to another time. Here are some of the reasons why this house will catch your attention:

• Built by Feller Construction (known for quality) in 1968

• Walnut built-ins throughout the house

• Eye catching multi material fireplace

• Cedar-lined closets

• Built-in laundry hamper

• Original light fixtures

• Spacious floor plan

• 1760 sq ft unfinished basement (clean and dry!) with a second fireplace - equity opportunity! Easily double your square footage!

• Clean yard ready for finishing touches!

• Tons of storage space

• Cute and clean one car garage

This house is truly one of a kind, clean and well cared for! Listed at $535,000.

Call to set up a showing soon! This gem won’t be available for long.

Just sold: architectural home with jungle vibes on South Hill

This was a fun one! We had the opportunity to sell this stunning one-owner home on South Hill. The stand out feature here was a two-and-a-half story solarium in the middle of the house. Incredible jungle vibes! (And yes, the plants were included with the sale.)

The home was mostly original. It was overall well kept and in good shape, but it needed new windows and other exterior maintenance. We priced accordingly ($1,250,000) and knew that we’d receive a ton of interest, which is what we wanted so that our clients could avoid inspection-related hassles.

From a marketing standpoint, we started with a target audience in mind — which we dubbed, the “Berkeley professor.” We crafted a strong out-of-state digital marketing campaign around specific areas where the buyer might be coming from.

After a whirlwind week on the market, including back-to-back showings for 6 days straight, we received 7 offers and it sold for $262,000 over list price — at $1,512,000. We have very happy clients!

229 S Garden Terrace | 3 beds | 2.5 baths | 3,059 SF

Blue Skies and Tired Thighs! These Are Bellingham’s Best Hikes.

We could send you an hour east to places like Excelsior Pass, Yellow Aster Butte, or Skyline Divide to get your hike on, and you absolutely should check out those incredible areas, but to get a great hike in Bellingham you don’t even really need to leave town! We are so lucky to have an awesome array of great trails just outside of our front doors. From epics that will leave you with tired legs to a quick jaunt through the woods Bellingham proper has you covered.

If you’re the ultra-fit hiker and want to challenge your cardio, consider hiking or running up Oyster Dome to Samish Overlook. After a few initial sweeping switchbacks off Chuckanut drive, the trail turns to steep rooty goodness that will have you begging for the top. This is a true reward hike, as once you’ve reached Oyster Dome you’re met with a giant rock outcropping and stunning views of Bellingham Bay and the San Juan Islands. Round trip up and back down is just about 7 miles with a 2,100-foot elevation gain. It might not sound like much for experienced hikers, but take our word for it, it’s a bit of a lung buster.

Photo by Kelsey Bumsted

If you love the idea of Oyster Dome but want to do something a bit less popular that same area offers a ton of other options on both the front and back side of Chuckanut and Blanchard Mountains. Starting from the same lot as Oyster Dome, you can take the PNW Trail Connector to Lizard Lilly Connector and Max’s Shortcut. This will mostly keep you in the trees, shrouded in massive canopy of old growth cedars. On summer days huckle and thimble berries provide trailside nutrition. This hike is less intense and less crowded. It also has a couple lakes in case you want to filter water or go for a quick swim!

Swim you say? There’s no better swimming in Bellingham than the cool, crisp waters of Lake Whatcom. Fortunately, the Chantarelle Trail ends at the North Lake Whatcom Trail and offers bountiful swimming options from beaches to private little coves and ample opportunities to jump and splash around. The trail and surrounding area are dog friendly too, so if Fido is along for the stroll, it can cool down too. The Chantarelle Trail is a multi-use trail shared most often with mountain bikers but have no fear, they’re very friendly and happy to share the forest. It’s a 4.2 mile out and back that offers a great view of Lake Whatcom and surrounding local mountains. This trail gets lovely evening light so plan for a finish and a sunset picnic at the lake!

If you’re looking for something much mellower and close to everything, you simply can’t beat a stroll through Whatcom Falls Park. Bellingham is an oasis and it’s on full display in this beautiful, urban sanctuary that features several gorgeous and full waterfalls throughout its trail network. The Park is packed with miles of trails, creeks, a duck pond, plenty of resting spots, and lots of quiet areas tucked away. This is a busy area, but it’s still easy to find quiet among the gorgeous trees and rushing water. In the summertime people swim in the creek and even jump off some of the bigger cliffs for a cool down. While there’s essentially no elevation gain in this park, it’s a great place to trail run, walk with the kids, or take the dogs for a stroll. It truly is one of our local gems.

Photo by Kelsey Bumsted

Last but not least is the mountain that has something for everyone: Galbraith. Located in the heart of Bellingham, Galbraith Mountain boasts over 80 miles of trails. It’s used by hikers, equestrians, and mountain bikers alike and offers incredible views of the city, Mt. Baker, the Sisters and north to the Coast Mountains in Canada. You can go as far as you want in this monstrous maze of trails and enjoy everything from clear cuts bustling with Foxgloves and Fireweed to beautiful dark forests with creeks running through the vicinity. Trails range from mellow to very technical for hikers and can be as steep or as easy as you want. Be sure to download an app like Trailforks as it is easy to get lost in the web!

Whether you’re planning an all-day exploration of Galbraith or just trying to get out to stretch the legs and lungs on Oyster Dome, there’s no shortage of trails. We’ve only listed a small sampling of what’s in store for you in Bellingham. So, lace up your boots, grab your water, and get hiking!