National study names Bellingham in top 3 areas to expect home prices to drop

Bellingham is the No. 3 market at risk of home price decline, according to a national study by Corelogic, a global property information and analytics provider.

Corelogic released its Home Price Index and home price index forecast for August 2022, which found that the year-over-year home price growth decreased for the fourth month in a row in August.

Bellingham was also featured in the study, as the market is expected to have the third-highest risk of home price decline in the next year, following Crestview-Fort Walton Beach-Destin, Florida, and Bremerton-Silverdale, Washington, markets.

Bellingham has a “very high” chance of home price decreases, with over a 70% chance of price drops.

Bellingham recently saw a decrease in home prices in September, decreasing by $64,000 between Sept. 12 and Sept. 19, according to recent reporting from The Bellingham Herald.

Home prices in the country continued their 127-month run of annual gains and increased 13.5% year-over-year in August compared to August 2021. Home prices also declined by 0.7% between July and August 2022, according to Corelogic.

By August 2023, Corelogic expects home price gains to slow down to 3.2%, compared to the 13.5% rate in August 2022.