For all that we have made a lot of progress in our housing market, most of that progress has been in the low to middle price range. A couple of months ago we talked a bit about how Months Supply suddenly jumped from about 6 months in the low and middle price range to about 15 months or more on the higher end. The break point seemed to be in the $600,000 – 800,000 range. Recently a friend of mine who lives in east Bellevue asked me to figure out if there really is a fairly sharp break point in that Months Supply curve that might be useful to Buyers and Sellers who are working in that price range. So being a registered data junkie, I decided to give it a try. The charts below suggest that there really is a fairly pronounced break in the East Bellevue market, and it does seem consistent with my earlier analysis of the King County market overall.
The conclusion: there really does seem to be a pretty sharp break in the $650-$660k area. Why is that? My only useful speculation is that is about the price point for maximum conventional mortgage (i.e. good interest rates) of $567,000 + 10% down = $630,000 purchase price. 15% down gets you to a $667,000 purchase price. So the break point seems to be the transition from good rates to significantly higher rates. Seems to make sense. Other ideas welcome 
