“After several quarters of steady increases, Bainbridge real estate prices dropped significantly in July.But according to local real-estate professionals, it’s a return to normalcy.Prices have dropped, no question about it, said Judy Nieukirk of Prudential Northwest Real Estate on Bainbridge Island. I see price reductions coming in daily. But I think this is a leveling out, and a return to what we normally see on Bainbridge. Georg Syvertsen of Deschamps Realty & Associates agreed.A lot of people were basing their prices on what was happening last year, but there have been some adjustments in July and August, he said.Statistics provided by the Northwest Multiple Listing Service, which track transactions handled through a member office, show that the median price of a single-family home sold in July was $365,000, a drop of over 12 percent from the $416,000 median price registered in July of 2000.The average home sold in July went for $384,500, a significant drop from the $423,700 recorded during that same month of 2000.Median price – meaning half the homes sold for more and half for less – is considered a less volatile market measure than average price, because average price can be skewed upwards by one or two sales of very expensive homes.But the very expensive end of the market was not a factor in July. While 14 homes have sold for more than $800,000 on Bainbridge this year, topped by a Manzanita Bay compound that sold for $3.3 million, the highest price paid for an island home in July was $715,000, according to the MLS numbers.Changes in the high-tech economy are being reflected in the upper end of the Bainbridge home market, Nieukirk said.Dot com types that were buying homes for $1 million last year might be looking in the $650,000 range now, she said.And some of the upper-end buyers are disappearing.I know of at least two cases recently where buyers in the $700,000 range left their earnest money on the table and walked away from deals because of changes in their work place, Nieukirk said.Recent economic uncertainties haven’t all been bad for the real estate market, Syvertsen said.The majority of people are coming in with very large down payments, he said. I think they’re putting their money into their homes instead of into the stock market. Despite – or perhaps because of – the price softening, sales activity increased in July. A total of 51 single-family homes and condominiums were sold last month compared to 35 in the same month of 2000, according to the MLS figures.We have lots of people looking at open houses, Nieukirk said, and the flyers we put at the houses are going fast.The lower end of the home market – by Bainbridge standards – was more active last month than a year ago. Of the 51 sales last month, 27 – or 53 percent – were for under $350,000, and 9 were for under $250,000. In July of 2000, by contrast, 14 of the 35 sales – 40 percent – were under $350,000, and only 5 were under $250,000.Nieukirk says lower interest rates have spurred activity at the more modest spectrum of the market.The July prices were off from those reported in June of this year. The 50 Bainbridge homes and condos sold in June of 2001 had a median price of $357,700 and an average price of $424,976, compared to the July median of of $349,000 for both homes and condos and the July average of $363,400.Even with July’s reversal, prices for 2001 remain significantly ahead of prices for 2000, as does volume. The MLS reported a total of 297 home and condo sales through Aug. 15 of this year, with a median price of $363,500 and an average price of $410,000. Through Aug. 15 of 2000, 261 homes and condos had sold for a median price of $358,150 and an average price of $394,600. There are plenty of homes on the market. As of Aug. 15, a total of 260 homes and condos were listed for sale, ranging in price from $129,880 to $3,200,000. The median price was $429,500, and the average price $531,700.The inventory has picked up some, said Erin Gallagher Whitson, associate broker at Coldwell Banker/Marie Gallagher & Associates. There’s more competition among the sellers.While acknowledging that prices are softening, Syvertsen said it’s too soon to spot a trend.A snapshot of any one month isn’t really indicative, he said. Overall, I think we’re in pretty good shape. I know business is booming in our office. “