2025 has been the year of a power shift in the real estate market, as we experience more balance in the market. Increased inventory has provided the biggest advantage for buyers, giving them more selection, which has tempered price growth and aided affordability. In Whatcom County, there were 38% more available listings in July 2025 over July 2024, and 27% more in Skagit County. This, along with the new normal of interest rates, has buyers who are ready to make a move in a positive position to pounce. We have even seen rates come down close to 6.5% for a 30-year conventional loan and to 6.15% for FHA and VA loans in the last two weeks!
Surprisingly, as we find ourselves in the dog days of summer with many people enjoying the last bits of kids being out of school, taking vacation time, and savoring all the PNW has to offer during the summertime, we have seen buyer activity start to increase. Month-to-date this August, pending sales are up over July 2025 by 37% in Whatcom County and up 25% in Skagit County. With 35% more homes for sale in Whatcom County YTD and 24% more in Skagit County, buyers are starting to understand the opportunity increased selection brings. According to the Mortgage Bankers Association (MBA), mortgage applications are also up year-over-year.
The increased selection has created more room for buyer negotiations and further opportunity to perform due diligence. Compare this to the previous onslaught of bidding wars, buyers now have a calmer environment to make big decisions. We have even seen the return of successful home sale contingencies when the right situation presents itself. Basically, the market has become more fluid and less of an uphill battle for buyers to secure a home. Evidenced by the average list-to-sale price ratio for a home in Whatcom County at 98% and Skagit County at 96% in July. With that said, we are still seeing homes that are brought to market that are well priced and in prime condition getting multiple offers and selling for over list price. It is just no longer the norm and more so the exception.
This has resulted in median price growth becoming flat, but not faltering. In Whatcom County, the median price is down 4% this July over July 2024, and up 6% in Skagit County. Further, when you calculate the average median price over the last 12 months compare it to the previous 12 months, median price is up 2% in Whatcom County and up 4% in Skagit County. We are nowhere near a free fall in prices; what we are experiencing is a deceleration in price growth. Since this has followed the unprecedented double-digit, year-over-year price growth we saw during the pandemic, some may see this as the sky is falling, which is simply wrong. This is a good thing!
The abundance of equity that was gained over the last five years and certainly over the last decade has many sellers making great gains. Median price in Whatcom County, for single-family residential homes is up 47% since 2020 and up 118% since 2016; and in Skagit County, it's up 47% since 2020 and up 149% since 2016. Bear in mind, real estate is a long-term hold investment, and timing a sale after the original purchase can have an impact. We are seeing many Baby Boomer sellers start to make big moves towards retirement, enjoying their well-earned financial freedom and, in some cases, addressing health needs. The move-up buyer/seller is returning to the market as well, putting their equity to work for them to purchase a home that better fits their household size and preferred location.
With interest rates predicted to only slowly recede, some buyers are using negotiated credits to buy down their interest rate and decrease their monthly payments. Buyers who are finding a way to make the monthly payments work, either through buy-downs or budgeting, are getting themselves into homes that feel better for their lives. They are also setting themselves up for long-term gains as their nest egg grows while they enjoy their home. It is important for everyone to understand that real estate is not typically a quick come-up investment. The pandemic years skewed that perspective, and returning to more historical norms should be welcomed, as that growth was unsustainable.
If you have been considering a move or know someone who is, now is a great time to consider your options and start planning. We have even seen first-time home buyers eager to jump into the market and start building wealth. I could easily apply the statistics above to your specific location, and we can apply the market conditions to your goals. Meeting up in person or via Zoom to discuss what this market has to offer and answer your questions is the foundation of my service. It never hurts to dream, plan, and discuss whether your desired outcome results in doing something sooner or later. This consultation meeting will lead to confident decision-making based on clarity and trust. It is a positive and proactive step forward, and is always based on the pace of my clients' wants and needs. It is my goal to help educate in order to empower strong decisions. Please reach out if you want to chat about how your goals align with today's market or if you know someone who could use this counsel.