The median sale price of single family homes in Bellevue has dropped to near 2011 lows in July, and first time buyers and investors looking to snatch up lower priced homes appear to be a leading factor. A drop in the median sales price was expected as pending sales, the leading indicator for future sales, had fallen in June, although the price drop was more significant than the numbers would have suggested.

July's median selling price of single family homes in Bellevue was $475,000 and far below June's mark of $594,695. Obviously, home values haven't actually declined 20% in just one month, so it is important to keep in mind the variable nature of analyzing one month's tallies. Bellevue has seen its fair share of good real estate news throughout the year as median sale prices and total sales volume saw marked increases throughout the year, and July's sales tally is a good example of the of the rocky road of recovery.

On the bright side, pending sales increased 15% month over month to 238 pending sales, which is higher than May's pending sale volume of 233 (which led to June's impressive median selling price). So, a significant uptick in August's future median sales price is a strong possibility. Another positive note was that the supply of homes (amount of months it would take to sell the existing inventory at the current sales pace) was 4.41 months and below the 5-6 months analysts say is "normal" (favoring neither the buyer or seller). A lower supply of homes spurs buyer competition and typically leads to rising sale prices.

To shed some more light on last month's low median sales price we see that of July's 93 single family home sales in Bellevue, 26.9% were in the 300k-400k price range compared to only 12.6% in June. Further, only 34.4% of home sales occurred at 600k+ in July compared to a whopping 48% in June. So, these numbers suggest a much larger proportion of first time buyers and investors buying in the more affordable price range. Foreclosure sales are commonly a culprit of lower median home values, however July only saw a modest increase in the volume of bank owned and short sales.

Altogether, given the monthly ups and downs, seasonal trends, and government tax incentive induced trends, the overall trend has been largely flat for about two years now. Ultimately, a sustained bottom of the market builds a more solid foundation for future growth.

- Prospera Real Estate's Seattle and Bellevue real estate market statistics, trends, news and blog