Here’s our monthly snapshot of the latest trends and data for the Mercer Island residential real estate market.
Mercer Island Real Estate by the Numbers | July 2020
Check out the real estate stats for last month on Mercer Island as they compare to market activity in July 2019.
- 56 homes for sale | -42 compared to one year ago
- 43 homes under contract | +14 compared to one year ago
- 37 homes sold | +25 compared to one year ago
- 47 – Average number of days homes spent on the market | -6 compared to one year ago
- Homes sold for an average of 101% of list price.
What’s Happening in the Market Now?
While July and August are usually slower months in local real estate with homeowners off on vacation or focused on back-to-school activities, recent trends have continued to buck the norm. On Mercer Island and across the greater Seattle area, COVID-19 impacts resulted in an inventory shortage, and market conditions typical of a hot spring market are continuing late into summer.
Looking back at July, the number of sales and pending properties on Mercer Island continued its upward trajectory from June, while the number of new listings remained steady. Available inventory in July was about 38% less than the same month last year, and buyers are feeling the crunch and moving quickly to make offers on the most desirable properties in the $1 million to $2.2 million price range soon after they hit the market. Many of the properties that have offer review dates are garnering multiple offers that result in an escalated final sale price.
The graphic below shows the velocity at which properties are going under contract. With 43 homes under contract at the end of the month, the absorption based on pending sales in July was a remarkable 76.8%.
The Absorption Rate based on Pended Sales (%) equals the number of properties pended divided by the number of properties for sale (in percentage). The Rate of Absorption measures the inverse of Months of Inventory and represents how much of the current active listings (as a percentage) are being absorbed (sold or pended) each month. Absorption Rate is presented as a percentage (%) of the current inventory.
While a frenetic pace of the real estate market during a pandemic may be surprising, COVID-19 has also inspired more mobility for a segment of the workforce who now have work-at-home flexibility and some with new-found inspiration to explore a suburban lifestyle that provides a bigger lot and more square footage.
Additionally, today’s historically low 3% interest rates are expanding home buying power, and many renters are pursuing home ownership. Here’s a helpful article about how interest rates impact buying power. It’s also a great time to refinance.
Looking ahead, we expect a continued active real estate season through the fall months leading up to November and December.
Brought to you by The Sirianni Group
This market update is brought to you by Erin and Charlie Sirianni, co-founders of The Sirianni Group, a leading team with Windermere Real Estate.
We work with clients on Mercer Island and throughout the greater Seattle area. If you are looking for real estate assistance, we would love to help.
Reach out today to begin the conversation!
Charlie Sirianni, JD, CRS, ABR
Managing Broker
Windermere RE Mercer Island
206-992-6151
[email protected]
Erin Sirianni, CRS, ABR
Residential Broker
Windermere RE Mercer Island
206-992-5272
[email protected]
Recent Sales & Reviews | Sirianni Group Website | Contact Us
