When looking at Bellevue home prices as an average, it can be misleading. The west and east sides of Highway 405, as well as single-family homes and condos, have all moved differently.

Let me clarify the reference point. The latest data from NWMLS (Washington State Multiple Listing Service) that I checked while organizing this article is based on September statistics. The sales figures are from September, while the rental and interest rate data are from early October and November.

NWMLS divides Bellevue into two mapped areas for aggregation. Area 520 is west of Highway 405, and area 530 is east of Highway 405.

Looking at the inventory, both sides have significantly increased. Active listings on the west side rose to 285, a 43.94% increase from 198 a year ago. The east side saw an increase from 201 to 281, a 39.80% rise.

If the term "active listings" is unfamiliar, think of it as homes currently on the market available for purchase.

However, the number of homes sold has actually decreased. In September, completed transactions were down from 40 to 34 on the west side and from 98 to 66 on the east side. There are many homes coming onto the market, but buyers are not keeping pace.

The number of pending contracts was slightly different. To put it simply, these are transactions where offers have been accepted but are not yet closed. The west side remained nearly unchanged at 43 pending contracts, while the east side dropped from 109 to 81, a decrease of 25.69%.

The months of inventory have widened significantly. This indicates how long it would take to sell all current listings at the current sales pace, with the west side at 8.38 months and the east side at 4.26 months.

King County as a whole is at 4.70 months, so the east side is slightly faster than average, while the west side is notably slower. I was somewhat surprised by the figure exceeding 8 months.

Prices are also diverging. The median price for combined single-family homes and condos on the west side is $1,965,000, down 17.28%, while the east side is up 1.85% to $1,374,999.

When looking solely at single-family homes, the median price on the west side is $2,720,000, which is 26.25% lower than $3,688,000 a year ago. The numbers alone are shocking.

However, it would be misleading to read that home prices have dropped by a quarter. Only 19 single-family homes sold on the west side in September, compared to 23 in the same month last year. With such a small sample size, the median price can fluctuate significantly based on which homes sold.

The east side single-family market is much steadier. The median price remains the same at $1,550,000 compared to last year. However, inventory increased from 110 to 167, a rise of 51.82%, while transactions decreased from 69 to 51.

The condo market is moving in a different direction. West side condos increased to $836,000, up 16.92%, but with only 15 transactions, this figure is not very reliable.

The median price for east side condos is $503,000, down 5.98%, with transactions nearly halving from 29 to 15. Inventory stands at 8.47 months on the west side and 7.60 months on the east side, indicating a more favorable market for buyers.

Looking at the entire Eastside, active listings have increased to 2,738, a rise of 42.23%, while the median price is $1,264,000, down 6.37%. The overall median price for King County remains at $850,000, unchanged from last year, making this adjustment more noticeable.

We also need to consider interest rates. According to Freddie Mac, as of November 5, the average 30-year fixed rate is 7.18%, compared to 6.22% a year ago.

If we assume a loan of $1 million and calculate principal and interest, the monthly payment would be $6,138 at 6.22% and $6,774 at 7.18%. That's a difference of over $600 a month.

What about rents? According to RentCafe data as of October 30, the average rent in Bellevue is $2,772, which is a 0.17% increase from a year ago. Essentially, it's holding steady.

A one-bedroom apartment averages $2,535, while a two-bedroom averages $3,215. By neighborhood, downtown averages $3,271, while Crossroads is at $2,115, showing a significant difference.

ApartmentList reported the mid-October rent at $2,391, down 1.7% from the previous month but up 1.2% from last year. The differences in amounts are due to sample sizes and aggregation methods, so focus on the trends.

If you're a tenant, keep next year's regulations in mind. The Washington State Department of Commerce has set the rent increase cap for 2027 at 10%, while this year it is 9.683%. To increase rent, landlords must provide written notice at least 90 days in advance.

This does not apply to all properties. Buildings with a certificate of occupancy issued within the last 12 years are exempt. There are various conditions, so check the construction date and RCW 59.18.710 before renewing your lease.

If you're looking to buy, start by checking which side of Highway 405 the home is on. Determine whether it's a single-family home or a condo, and look at the months of inventory in that area. For school districts, verify directly on the school district website using the address.

I would likely start by negotiating on condos. In a market with over 7 months of inventory, it's worth discussing terms like closing cost assistance.

If you're selling, it's best not to base your price on last year's neighbor's sale. Even if the median price for east side single-family homes is holding steady, the number of competing listings has increased by more than half, making the initial price crucial.

If you're aiming for rental income, you need to calculate more conservatively. Rents are not rising much, while interest rates are in the 7% range. If it's a condo, include HOA fees and reassess your cash flow.

It's premature to draw conclusions from a sample of 15 or 19 transactions in just one month. When the October NWMLS statistics are released, compare them with the same area codes. I plan to observe trends over three months before making any moves.

Reference materials include NWMLS September area statistics, Freddie Mac weekly rates (November 5), RentCafe, ApartmentList, and notices from the Washington State Department of Commerce and RCW provisions.