Real estate stats are in for the second quarter (Q2) of 2016, and we’ve created this infographic to give you a visual snapshot of what’s happening in the Mercer Island real estate market.
The most surprising statistic for Q2 2016 was our virtually non-existent median sale price increase (0.4%). If you’ve been following home appreciation trends on Mercer Island (consistently in the double-digits for previous quarters), this stat probably caused you a double-take too.
But the number is correct. Looking at all residential sales on Mercer Island for Q2 2016, the island’s median sale price increase was a mere .4% over Q2 of 2015.
I also calculated the change in average sale price for the quarter year-over-year, and that was a negligible increase of .0042%.
By contrast to last quarter, there appeared to be a massive increase in values in Q1 2016 compared to Q1 2015 – a whopping 27.3% increase in average sale price (though the sample size was only 37 homes).
So what’s up?
As we noted in our June market update, we have a considerable inventory of luxury listings on Mercer Island. Fifty new listings priced over $2 million hit the market in Q2 2015, and only 10 of those are currently pending or sold.
With this surge of inventory and tapered buyer demand, the luxury market has stagnated somewhat and is now one of the strongest buyer-favored market segments in the region.
This explains the appearance of flat-lining home appreciation – the transition in the luxury market over-shadowed solid price gains at more modest price points.
In fact, year-over-year appreciation in Q2 for homes under $2 million on Mercer Island was about 9%, and the entry-level market, especially for turnkey homes priced below $1.5 million, remains very competitive.
I’ll be curious to look at home appreciation trends in Q3 and Q4. The steep appreciation that we’ve seen in past quarters isn’t sustainable in the long run, and I’m hearing reports of market stabilization or a “healthy plateauing” in similar markets, like the Bay Area, which could be good for Seattle, Mercer Island, and the Eastside as well.
Download your complete market report for Q2 2016 below:
Considering buying or selling a home on Mercer Island? We’d love to help. Erin is a local neighborhood expert and a residential real estate broker with Windermere Mercer Island. She is co-founder of the Sirianni Group, in partnership with her husband, Charlie Sirianni. Charlie is a Mercer Island native, Managing Broker with Windermere Mercer Island, and former real estate attorney of 10+ years. Get in touch with Erin (email / phone) or Charlie (email / phone) today.
