February 2018 Real Estate Market Update

March 12, 2018 | by Erin Sirianni

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February marks the beginning of the first peak market season in real estate on Mercer Island. Typically in the greater Seattle area, the major season occurs in the spring and another (though smaller) peak season occurs in the fall, with activity slowing down slightly during the months of July and August as well as during the winter holiday months.

This year’s “major season” is off to a strong start with a swell of new listings seen locally and regionally. The Seattle Times notes in its monthly report that home price records continue to be “smashed” across Seattle and the Eastside, and the market is especially challenging for homebuyers as interest on home loans creeps up. Today’s average 30-year fixed rate is 4.28%, up from 4.22% in January, according to Zillow.

The Times credits a “hyper job market” to the hyper competition for homes, thus causing home price to grow “faster than anywhere else in the country for the last 16 months in a row.” 

[Above image: The southwest shore of Mercer Island with the Seattle city skyline on the horizon | Credit: Sirianni Group]

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

In February, there were 44 new listings on Mercer Island, more than doubling the number of new listings that came on the market in January, and a significant year-over-year increase as well, as there were 28 new listings in February 2017.

The new listings included homes across all price ranges, from a $875,000 “townhome alternative” on Island Crest Way to a $9,500,000 north end waterfront estate – featured as one of Patti Payne’s Cool Pads in the Puget Sound Business Journal.  Both of these homes are already under contract, and we listed a beautiful shared-waterfront home on the south end of Mercer Island that was under contract in two days. Of the 44 new listings in February, only 11 are still on the market today, 6 of which are priced over $4 million.

The number of sales was fairly consistent compared to January 2018 and the same month last year.  There were 16 sales in February –  one more than in January, and the same as the number of homes sold in February 2017.
The Mercer Island median home price increased month over month and year over year, though with only 16 sales, the median and average prices were exceptionally high due to a $6.5 million sale and two other homes sales of approximately $3 million each.

A quick note about our new “Trends at a Glance” table in regard to median and average sale price:  The Mercer Island monthly sales data set is small, and we provide the median and average sale prices from one month ago and one year ago as an interesting comparison. However, waterfront or luxury sales can skew the average and median monthly sale prices to the high side. To get a more accurate sense of appreciation on Mercer Island, we suggest that you look at quarterly and annual Mercer Island market reports.

A Snapshot of the Current Inventory

As of today, Mercer Island has 43 active listings and very limited inventory for homes priced under $1.75 million. Over 50% of the current available inventory is priced over $3 million, and over 70% of the inventory is priced over $2 million. The entry price point for first-time home buyers on Mercer Island is approximately $1,200,000. The more affordable homes that are currently available require major remodeling or may be appropriate sites for new construction homes.

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.

February 2018 Real Estate Market Stats

Single-Family Residential Market (All)

  • 44 new listings
  • 16 sold homes
  • Median sale price:  $1,762,500
  • Average sale price: $2,073,264
  • Lowest sale price:  $1,000,000
  • Highest sale price:  $6,500,000

Non-Waterfront Homes

  • 37 new listings
  • 14 sold homes

Waterfront Homes

  • 7 new listings (1 Westside, 2 North End, 4 Eastside)
  • 2 sold homes (1 Eastside, 1 North End)

Mercer Island Condo Market

  • 2 new listings
  • 2 sold homes
  • Lowest sale price:  $399,960
  • Highest sale price:  $538,000

Mercer Island “Nosy Neighbor Report” – February 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.

Click here to download full-size PDF.

Our listing at 7 Holly Hill Drive is now sold! This wonderful property received 7 offers and sold well above list price. 

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]