May 2018 Real Estate Market Update

June 11, 2018 | by Erin Sirianni

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If you didn’t catch the recent Seattle Times article, “How to buy a home in the Seattle area: a survival guide,” it’s a must-read with funny illustrations included. While it accurately describes our current market’s intense competition and rising prices, it provides good information for successfully navigating the market with helpful tips for finding opportunities, writing a strong offer, and picking a lender and broker to help you secure a great home.

We also read a recent Puget Sound Business Journal article with interest as it describes market indicators that suggest a possible leveling out of the Seattle housing market – and last month’s data for the Mercer Island market showed similar trends.  Read on to learn more.

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

In May, there were 51 new listings, a significant increase from the 28 new listings that came on the market in April 2018. While this was quite a big jump month-over-month, the swell of new listings was expected – similarly, we saw 54 new listings in May 2017.

As the weather improves, more home owners are getting their properties on the market, eager to maximize exposure during the spring and early summer season. Buyers are active this time of year, as many families with children are looking to complete their purchases prior to the start of the school year. We expect June and July to be similarly active.

The number of sales marked a decrease with just 30 homes sold in May, compared to 36 sold in April and 37 sold in the same month last year. A possible explanation is that over 40% of new listings that came on the market between March and May were priced above $2 million. At this price point, the Mercer Island market shifts and becomes more of a buyers’ market.

We also noted that Mercer Island’s absorption rate dropped to 46.8% last month (see graphic below), demonstrating a slow down in the velocity at which homes are going under contract. Again, the higher-priced inventory may be contributing to the slight slow down.  Additionally, as new listings and inventory increases, buyers may be experiencing some relief and are sitting back a little longer before making offers.

The Mercer Island median and average sale prices increased month-over-month and year-over-year.  Despite slight decreases in the number of home sales and the absorption rate, Mercer Island home prices are still strong.

A Snapshot of the Current Inventory

As of today, Mercer Island has 59 active listings, and the market experienced a doubling of inventory for homes priced between $2 and $3 million, compared to our last snapshot. Single-family residential homes that are priced less than $1.25 million are hard to be found these days, while the mid-range price segment, $1.5 to $2 million, is experiencing a modest increase in inventory.

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.

May 2018 Real Estate Market Stats

Single-Family Residential Market (All)

  • 51 new listings
  • 30 sold homes
  • Median sale price:  $1,725,000
  • Average sale price:  $2,019,882
  • Lowest sale price:  $920,000
  • Highest sale price:  $6,500,000

Non-Waterfront Homes

  • 50 new listings
  • 28 sold homes

Waterfront Homes

  • 1 new listings
  • 2 sold homes (2 Westside)

Mercer Island Condo Market

  • 7 new listings
  • 8 sold homes
  • Lowest sale price:  $360,000
  • Highest sale price:  $660,000

Mercer Island “Nosy Neighbor Report” – May 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.

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: Stunning Kim Schademan Custom Home – we were thrilled to help our clients secure this beautiful property. Photo credit: NWMLS / Ruth Harle, Compass & Joan Bayley, Windermere Real Estate]