Bellingham Housing Market 2026: A Shift Toward Balance
If you have been watching the Bellingham real estate scene for the last few years, you know the drill: competitive bidding wars, waiving inspections, and homes flying off the market in 48 hours.
But as we settle into February 2026, the narrative has finally changed.
We are seeing a genuine shift from a frantic seller’s market to something that looks and feels much more like a balanced market. While prices haven't plummeted, the intensity has cooled. For the first time in a long time, inventory levels are offering real relief. If you are thinking about moving to Bellingham WA, you actually have options to choose from this year, giving you more leverage than buyers have seen since before 2020.
Key Market Statistics (February 2026 Update)
Let’s get straight to the numbers. Understanding the data is the best way to cut through the noise and figure out what your monthly payment or net proceeds might actually look like.
Here is a snapshot of where the Whatcom County housing market stands right now:
Median Sales Price: Across the city, the median price is hovering in the $650,000 to $750,000 range. This varies heavily by neighborhood, but it’s a solid baseline for what a standard single-family home costs today.
Inventory Growth: This is the biggest story of 2026. We are finally seeing active listings reach 3+ months of supply. That is a significant jump from the lows of 2024 and 2025.
Days on Market (DOM): Homes are sitting a bit longer, averaging 30 to 45 days before going pending. The "sold in a weekend" era is largely behind us.
List-to-Sale Ratio: Sellers are getting closer to 96% to 98% of their asking price on average. This means price reductions and negotiations are becoming common again.
If you want to dive deeper into specific neighborhood numbers, check out our latest market trends report.
Home Price Trends & Forecast for 2026
A lot of buyers ask me if the increase in inventory means prices are about to crash. The short answer is: probably not.
While inventory is up, prices in Bellingham have remained remarkably stable. We aren't seeing a freefall; instead, we are seeing a flattening. Year-over-year growth is sitting at roughly 0% to 2%. This stability is actually healthy—it means the market is taking a breath.
However, we are seeing a "split" market emerge. The competitive, affordable tier (homes under $750,000) is still seeing multiple offers if the home is turnkey. Meanwhile, the luxury tier (homes over $800,000) is softer. Buyers in that higher price bracket have much more power to negotiate right now.
Interest rates are the main driver here. With rates stabilizing in the mid-6% range, it has put a cap on rapid appreciation. It keeps a lid on prices going up, but it also creates a floor that prevents them from crashing, as most current homeowners are locked into lower rates and aren't panic-selling.
Neighborhood-Level Market Watch
Bellingham isn’t just one market; it’s a collection of micro-markets. What is happening in Fairhaven can be totally different from what is happening in the northern part of town.
Premium Markets (Fairhaven, Silver Beach, Edgemoor): These areas continue to command the highest price tags, generally starting north of $800,000. However, sales velocity here has slowed down. Inventory is sitting longer, and buyers can take their time to find the right view property or historic renovation without feeling rushed.
Affordable & Growth Areas (Cordata, Birchwood, Northern Bellingham): If you are looking for best neighborhoods in Bellingham for first-time buying or investment, these northern corridors are where the action is. We are seeing higher turnover here and more competition, simply because the price point is accessible. There is also more new construction appearing here, specifically townhomes and condos, which helps keep options open.
Sudden Valley: This area remains a distinct sub-market. It often offers the most house for your money, with prices frequently dipping below the Bellingham median. However, high HOA dues and special assessments can impact your monthly budget, so it’s vital to run the full numbers—not just the mortgage payment—before diving in.
Rental Market Overview
Not ready to buy yet? The rental market has shifted slightly as well.
Due to several multi-family construction projects completing in late 2025, vacancy rates have softened just enough to stop the skyrocketing rent increases we saw previously. currently, the average rent for a 1-to-2-bedroom unit is hovering around $1,550 to $1,750 per month.
For investors, this makes cash flow challenging. With interest rates near 6% and rents stabilizing, you generally need a significant down payment to see positive monthly returns immediately.
Bellingham vs. Seattle & Nearby Markets
When you zoom out, Bellingham’s value proposition becomes clearer.
Compared to Seattle, where the median home price is still pushing $900,000+, Bellingham remains a relatively "affordable" urban alternative. However, that gap is narrowing.
For those finding themselves priced out of Whatcom County, we are seeing more buyers look south to Skagit County (Mount Vernon or Burlington) or north to Lynden and Ferndale. Lynden and Ferndale, in particular, often offer newer housing stock for the money. You might get a 2020-built home in Ferndale for the same price as a 1970s fixer-upper in the Bellingham core.
Buying vs. Selling in 2026
So, what does this mean for you? The strategy changes depending on which side of the table you are sitting on.
For Buyers: You have time. That is your biggest asset right now. Don't feel pressured to waive contingencies. In this market, it is completely reasonable to request repairs, ask for closing cost credits, or negotiate the price down based on inspection results. If you are a first-time buyer, check out our first time home buyer guide to understand what concessions you should be asking for.
For Sellers: Pricing is absolutely critical. If you price your home based on 2022 stats, it will sit. Overpricing leads to stagnation, and once a listing hits that 45-day mark, buyers start wondering what is wrong with it. Staging and preparation are non-negotiable now that you are competing against 3+ months of inventory. For more on how to prep, read our home selling tips.
FAQ: Common Questions About the Market
Will house prices drop in Bellingham WA in 2026?
We do not expect a significant drop or "crash." Prices have flattened and are seeing very modest growth (0-2%), but steady demand and stabilized interest rates are keeping values consistent. It is more of a correction to normal than a drop.
Is Bellingham WA a buyer's or seller's market right now?
It is currently a balanced market, leaning toward a buyer's market in the higher price tiers ($800,000+). Buyers have more inventory to choose from and more negotiating power than they have had in years.
What is the average price of a house in Bellingham in 2026?
As of early 2026, the median sold price for a single-family home in Bellingham generally falls between $650,000 and $750,000, though condos and townhomes can be found in the $400,000 to $500,000 range.
Final Thoughts: Is Now a Good Time to Buy?
The "panic buying" era is over, and that is a good thing. The new normal in Bellingham is stability.
If you are looking for a quick flip, this might not be the market for you. But if you are looking for a long-term home, 2026 offers a great opportunity to buy without the chaos. Bellingham remains a highly desirable destination with its access to the outdoors, the bay, and a vibrant community—factors that protect your equity over the long haul.
Real estate is hyper-local. If you want to know what your specific home is worth or what is available in your favorite neighborhood, contact us today. Let’s look at the numbers together.