October proved to be an interesting month for real estate in the Bellevue and Seattle area, and some of the unique factors affecting the trends are a microcosm for the local recovery.

Brokers in the area agree that real estate has been behaving relatively normal and healthy for most of 2011, and it has done so through a mix of positive and negative factors that affect the real estate market. An example of a positive trend for both Bellevue and Seattle is the ease in which appropriately presented and priced homes are selling (average time on market for sold, single family homes is only 52 days in Bellevue and 50 in Seattle).

Additionally, the supply of homes (months it takes to sell all existing listings at the current sales pace) in Bellevue and Seattle has bounced around the four month mark for the majority of 2011. An inventory of five to six months is considered a neutral market while below five months favors the seller and more than six months is considered a buyer's market. Inventory levels teetering slightly in favor of the buyer have led to quicker sales and have helped stabilize prices, serving as a promising stepping stone into 2012.

Still, with all the good the local real estate market is seeing, there are still many national factors that have kept the real estate market in check. The volatility in the stock market, the White House quarrel over raising the debt limit, and the European debt crisis all effect consumer sentiment which keeps some buyers on the sideline.

A current example of a national factor affecting the local real estate market is the adjustment in October of the conforming loan limits for government backed loans. The government previously raised the conforming loan limit years ago in many areas of higher priced real estate, the Seattle area being one, and the temporary increase in conforming loan limit just expired in October. The reason this is important is because loans above the now $506,000 limit are considered "jumbo loans" and come with a higher interest rate. Many buyers were surprised to see their loan programs and payments change prior to closing and were suddenly unable to qualify for a loan on the home they chose; this may be one of the reason closed sales of single family homes in Seattle fell 6.1% month over month while pending sales only dropped 2.4% the previous month. Further, buyers completing fewer sales in the $500,000+ price range would lead to fewer sales for the month of October as well as lower median selling prices. This was the case in both Seattle where the median selling price of single family homes fell month over.

For a comprehensive list and analysis of the stats and trends, click on over to our Bellevue Real Estate Statistics and Seattle Real Estate Statistics pages.