April 2018 Real Estate Market Update

May 7, 2018 | by Erin Sirianni

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With Mercer Island in full bloom, Rhododendron lovers are rejoicing and allergy sufferers are, well, suffering – though the rhodies are probably not to blame and maybe you’re doing both – enjoying spring even if it means some suffering too. April was also met with mixed reactions and emotions for those active in the real estate market. Our clients looking to purchase a home faced fierce competition, and the weeks surrounding spring break brought fewer listings just as hopes of a dream house to hit the market ran high. Thankfully, the first week of May brought on more listings, and meanwhile, our clients who have recently sold their homes have been very satisfied with their successful outcomes.

In its monthly real estate report, The Seattle Times also reported on tough times for buyers and conditions that are a long way off from a balanced market. Additionally, the article shared the results of a recent poll by the Puget Sound Regional Council that found that the high cost of living has become the number one complaint of regional residents.  Previously, traffic and the lack of transportation options were the biggest complaints. But again, there’s a bright side as 65% of surveyed residents “feel that the quality of life in the region is positive.”

An Overview of Mercer Island’s Single-Family Residential Market

In April, there were 28 new listings, a significant drop from the 41 new listings that came on the market in March 2018. The Mercer Island School District’s spring break falls in April, which results in lighter listings. Similar to the holiday season, sellers don’t want to limit their property exposure by listing just before or during spring break – the city is markedly more quiet during this week with many families traveling to their vacation spots (and taking a break from house hunting as well).

The number of sales marked a considerable increase with 36 home sales in April compared to 27 homes sold in March.  Home sales are also up year-over-year, as there were 22 home sales in April 2017.  Mercer Island’s absorption rate climbed to 75.5% last month (see graphic below), demonstrating the velocity at which homes are going under contract – buyers are exceptionally active and appear even more so this year than last year, as the absorption rate was 41% in April 2017.

The Mercer Island median and average sale prices increased month-over-month and year-over-year.  Five waterfront sales last month contributed to this boost, three of which were North Mercer waterfront homes with one sale at $8,150,000 and the other two at over $4 million each.

A Snapshot of the Current Inventory

As of today, Mercer Island has 54 active listings, and the market has experienced a moderate increase in inventory of homes priced between $1.25 and $3 million, while the ultra-luxury market has remained unchanged in numbers compared to our last snapshot. Last week, there was a swell of new listings in the $1.3 to $1.4 million range, though most of these homes will be under contract within the week.

Mercer Island new listings, pending sales, homes for sale, and homes sold for the past 15 months (single-family homes – does not include condos)*

*Trendgraphix data may vary from other data provided in this monthly market update. For example, while a listing may appear to be a “new listing” to Trendgraphix, it may have been canceled and re-entered into the MLS as a strategy to repopulate IDX feeds. Additionally, town homes are occasionally listed as both a single-family home and as a condominium home. We filter for these types of “new” listings and duplicate listings.

Mercer Island absorption rate based on homes sold for the past 15 months (single-family homes)*

The absorption rate indicates how quickly homes are selling. It is calculated by taking the number of properties sold divided by the number of properties for sale (as a percentage). In a buyer’s market, the absorption rate is 16.67% or lower. In a balanced market, the absorption rate range is from 16.67% to 33.33%, and in a seller’s market, the absorption rate is 33.33% and above.

April 2018 Real Estate Market Stats

Single-Family Residential Market (All)

  • 28 new listings
  • 36 sold homes
  • Median sale price:  $1,614,708
  • Average sale price:  $2,188,085
  • Lowest sale price:  $879,000
  • Highest sale price:  $8,150,000

Non-Waterfront Homes

  • 28 new listings
  • 31 sold homes

Waterfront Homes

  • 0 new listings
  • 5 sold homes (3 North End/North Mercer; 1 Westside; 1 Eastside)

Mercer Island Condo Market

  • 6 new listings
  • 4 sold homes
  • Lowest sale price:  $519,000
  • Highest sale price:  $590,000

Mercer Island “Nosy Neighbor Report” – April 2018

Here’s our monthly “nosy neighbor” report with data for all single-family home sales on Mercer Island (not including unlisted sales). If you’re curious about a recent sale in your neighborhood, you can learn the details with a quick glance at the report below or by clicking on the map for sale details.

Current Mercer Island Listings

By Home Type / Location

  • Mercer Island Condos
  • Single-Family Residential Homes (All)
  • New Construction Homes
  • Waterfront Homes
  • Search by Neighborhood

By Price

  • $1 million or less
  • $1 million to $1.5 million
  • $1.5 million to $2 million
  • $2 million to $2.5 million
  • $2.5 million to $3 million
  • $3 million to $4 million
  • $4 million to $5 million
  • $5 million or more

If you are in need of real estate services, we would love to help. Get in touch today. Check out all of our recent sales here, visit our Listings Portfolio here, and read our testimonials here.

Charlie Sirianni, JD, ABR
Managing Broker
Windermere Mercer Island
Call: 206-992-6151
Email: [email protected]

Erin Sirianni
My MI Founder & Editor / Residential Broker
Windermere Mercer Island
Call: 206-992-5272
Email: [email protected]

Feature image: Wonderful south end home steps from Pioneer Park. We were thrilled to help our clients secure this lovely property. Credit: NWMLS / Erin Ewing, Windermere RE Mercer Island