The boost in home sales came outside of Bellingham. While sales jumped in Lynden (up 51.7 percent in the first quarter compared to a year earlier) and Ferndale (up 43.5 percent), Bellingham’s sales were down 11.3 percent.

Johnson said lower prices for recently built homes are attracting buyers to look outside of Bellingham.

Johnson said the overall jump in sales indicates that the housing market is finally starting to get back on track. Demand needs to increase, however, before prices start stabilizing again. She noted several factors that indicate prices might stabilize toward the end of the year:

• The percentage of distressed properties – those stuck in foreclosure or being listed as a short sale – continue to decline in Bellingham. Distressed property listings accounted for 8.7 percent of all Bellingham listings in March, down from 13.6 percent in October, according to Johnson.

• Inventory remains low. The number of homes for sale in Bellingham last month was 14.8 percent lower than a year earlier. Johnson said the typical surge in new listings when spring arrives hasn’t happened yet.

• Johnson said 23 percent of homes are being sold within 30 days of being put on the market, which is creating slightly more urgency among buyers to move forward on a newly listed house.

• Sales of Bellingham homes for more than $300,000 are accounting for a higher percentage of sales, suggesting that more “move-up” buyers are entering the market.

Johnson also noticed increased demand for duplex sales by investors. If that segment remains strong, it could mean an increase in investors buying single-family homes again to use as rentals.