March 2018 Real Estate Market Update

April 16, 2018 | by Erin Sirianni

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With March in the books, the spring real estate market season is in full swing. It’s an interesting time to look at stats, since the quarterly data is in as well. As we note below, the market on Mercer Island has been more active this year than last year with over 10% more listings and sales from January to March.

Monthly inventory remains exceptionally low as most homes in the entry and mid-level price ranges are snapped up as soon as they hit the market. Homes priced above $2 million, which currently represents about 60% of Mercer Island’s current inventory, are selling more slowly. Those that sell more quickly are well prepared for the market, in regard to price, home preparation, and presentation.  Of the 16 new listings priced above $2 million that came on the market in March, 7 are either sold or under contract, which includes our listing at 8059 West Mercer Way. All of these were well presented and also had spectacular Lake Washington views, a highly desired feature of Mercer Island real estate.

Last month’s Seattle Times market update again noted impressive home price gains in the greater Seattle area; though in March, the Eastside lagged behind Seattle. By comparison, Seattle gained 17.1% in median home prices over last year; while the Eastside gained 6.4%.

[Above image: Westside shared waterfront on Mercer Island; a wonderful feature of our recent listing – sold in two days at full price! Credit: Sirianni Group]

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

In March, there were 41 new listings on Mercer Island, a slight drop from the 44 new listings that came on the market in February, though a slight increase year-over-year, as there were 39 new listings in March 2017.
The number of sales marked a considerable increase with 27 homes sales in March compared to 16 in February.

This is to be expected as inventory begins to increase during the year, more homes go under contract, and closings take place in about 30-45 days. Home sales are also up year-over-year, as there were 23 home sales in March 2017.  So far 2018 has been a more active market than the early months of 2017; there have been about 15% more listings and 12% more home sales in the first quarter of 2018 compared to that of 2017.

The Mercer Island median and average home price decreased month over month and year over year. Our quarterly market report is now available, which also suggests a decrease in average home prices. However, a much higher percentage of mid-range homes sold in the first quarter than in quarters past, giving the appearance of falling prices. In reality, it was actually a downward shift of the segment of the market that is selling.

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 46 active listings and very limited inventory for homes priced under $2 million. Over 60% of the current available inventory is priced over $3 million, and approximately 80% of the inventory is priced over $2 million.

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.

March 2018 Real Estate Market Stats

Single-Family Residential Market (All)

  • 41 new listings
  • 27 sold homes
  • Median sale price:  $1,517,448
  • Average sale price:  $2,014,683
  • Lowest sale price:  $850,000
  • Highest sale price:  $8,500,000

Non-Waterfront Homes

  • 39 new listings
  • 25 sold homes

Waterfront Homes

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

Mercer Island Condo Market

  • 7 new listings
  • 3 sold homes
  • Lowest sale price:  $525,000
  • Highest sale price:  $632,000

Mercer Island “Nosy Neighbor Report” – March 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]