Issaquah and Sammamish both saw drops in median sales price of homes and inventory compared to one year ago in both single family and condominiums.

In Issaquah, median sales price for single family and condos combined dropped 31.33 percent from $515,500 a year ago, to $354,000 last month. Sammamish east to North Bend, saw median price drop 8.64 percent from $474,500 a year ago to $433,500 last month.

There were 66 closed sales in Issaquah last month, up from 52 a year ago, and 120 closings in Sammamish compared to 114 a year ago.

Pending sales, which are the best barometer of what’s happening right now, are new contracts that have not yet closed.

In Issaquah, 120 pending sales were reported, compared to 95 last year at this time.

But Sammamish really saw some action, with 204 pending sales last month, up from 199 a year ago.

Inventory is dwindling, too, perhaps for seasonal reasons. Issaquah’s overall inventory dropped from 536 a year ago to 421, and Sammamish from 939 properties a year ago to 796 last month.

Bob Richards, a broker with Windermere in Issaquah, said the drop in inventory is attributed to winter knocking at the door, coupled with the frantic desire by some of the sellers to sell their home no matter what.

“A lot will succumb to a lower offer,” Richards said. “Some sellers will jump at any offer so they can sell before winter.”

Breaking out single family only, median price dropped 16.14 percent in Issaquah from $593,750 to $497,944, with 46 closed sales last month. In Sammamish, median price dropped 10.73 percent from $508,000 a year ago to $453,500, with 104 closed sales, up from 97 in October 2010.

Looking at condominiums, closings doubled from last year in Issaquah, with 20 condo closings compared to 10 a year ago. The change in price was 7.29 percent, from $191,450 in October 2010 to $177,500 last month.

Sammamish had 16 condo closings at a median price of $205,000 down 10.09 percent from $228,000 a year ago. In October of 2010, 17 condos closed in Sammamish.

Richards said that investors are starting to show up and condominiums make sense for them. The downside to investors buying up too many units in any given condominium project, is that the lower owner-occupant rate can affect future financing for the project.

He said since so many of the condos are distressed properties, the seller, usually an institution, feels it’s much better to get someone in there paying condo dues now.

“You can starve to death waiting,” Richards said.

But the new buyers need to beware of their ability to re-sell if there is no financing available due to a low owner-occupied ratio of units.

Prices were down almost 11 percent area-wide compared to a year ago, according to the Northwest Multiple Listing Service, an organization that includes more than 22,000 real estate brokers.

In a press release, listing service director Frank Wilson said, “What is holding back the housing market has little to do with houses.”

He said it has more to do with uncertainty in the stock market, volatile global economies, and lack of job creation.

It doesn’t help, either, that the ceiling for jumbo loans dropped. Buyers in need of a mortgage above $506,000 must now qualify for a jumbo loan which is more restrictive and carries a higher interest rate than a conventional loan. The previous limit on jumbo loans was $567,500

According to the listing service, in King County, nearly one-third of the available inventory is priced above the more restrictive loan limit.

Richards said this could be the last hurrah before March, and he suspects a sleepy winter, but he said buyers will come out if it’s a great deal.

“We still have low interest rates and banks are loosening up,” he said, adding that these factors point to a stable 2012.

Linda Ball can be reached at 206-232-1215 ext. 5052.