October 2016 Real Estate Market Update

Donald Trump’s election last week caught many people by surprise. We looked to Windermere economist Matthew Gardner to shed light on what Trump’s election may mean for the US economy and housing market. He shared his thoughts and analysis in a recent blog post, discussing the possibilities for a re-energized market or a temporary lull.

Predictions aside, we are seeing interest rates ticking up, which is not unusual post-election and will likely continue in small increments for the foreseeable future. Buyers have just started to feel the impact, and in the long term, with every 1% increase in rates, buying power decreases by approximately 10%. Historically, when interest rates go up, home appreciation slows.

So without further ado, here’s what happened last month in Mercer Island real estate.

Mercer Island October 2016 Market Report

The September real estate trends continued in October, though new listings dropped slightly from 33 to 29 and sales dropped from 41 to 33 sold homes.

We still have a strong sellers’ market for homes priced approximately below $1,800,000 (provided these homes are priced and prepared properly). We are still seeing offer review dates, most often for homes in the $900,000 to $1,300,000 price range. Buyers should note, however, that many homes with offer review dates are selling prior to the review date. This was our experience for our recent listing in the Mercer Terrace neighborhood, and we noticed that another recent listing on First Hill was also sold before the offer review date.

It’s a buyers’ market for homes priced over $2,000,000, which currently makes up over 75% of current single-family homes for sale on Mercer Island. Over 45% of the current inventory is priced over $3,000,000.

Overview of residential / condominium market:

• 75 active listings (as of 11/13/16)
• 29 new listings in October
• 33 sold homes in October (October 2015: 25 sold homes)

Single-Family Residential Homes*

• 25 new listings
• 27 sold homes (October 2015: 21)
• Average sales price:  $1,474,609
• Median sales price:  $1,365,000
• Lowest sales price:  $830,000
• Highest sales price:  $2,800,000
• Homes sold under $1 million:  5
• Homes sold between $1 – 2 million:  18
• Homes sold over $2 million:  4

*Non-waterfront

Waterfront

• 2 new listings (1 Eastside, 1 Undisclosed)
• 0 sold homes
• Lowest sales price: N/A
• Highest sales price: N/A

Downtown Condos

• 2 new listings
• 6 sold listings
• Lowest sales price:  $429,000
• Highest sales price:  $750,000

Current Mercer Island Listings

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

Final Design Review for Aegis Assisted Living Center

The Mercer Island Design Commission met on Wednesday, October 12th, to provide a final design review for Aegis Assisted Living Center, a new 89-unit assisted living community planned for downtown Mercer Island.  The commission granted final design approval for construction of the new building, parking, site improvements and landscaping. Aegis can now move forward with obtaining building permits.

The assisted living community will be located at 7445 SE 24th Street, near Town Center (behind the Aviara Apartments building).

Sirianni Group News

Our Mercer Terrace listing didn’t last long. Even with an offer review date a week after listing, buyers couldn’t wait. It was pending in less than 48 hours on the market.

Last week, I attended an fantastic conference in Tacoma specifically organized for real estate agents who take a community-focused approach to their business. My colleagues from around the country came to share the innovative ways they are creating and celebrating community with their blogs, video series, social media efforts, and through community events. It was right up my alley, and I have some exciting ideas for My Mercer Island in 2017. Stay tuned!

If you are considering a move in 2017 or just need a recommendation for a handyman or another service provider, feel free to reach out to us anytime.