Real estate stats are in for the first quarter of 2019. As the market has become more balanced in recent months, the numbers for Q1 2019 show that the Mercer Island market is off to a slower start than we’ve seen in the past few years.
Following a 10% median sale price increase in 2018, the Mercer Island median sale price fell 1.9% to $1,530,750 in Q1 2019 from $1,560,000 in Q1 2018. The total number of sales was similar with 56 sales in Q1 2019 compared to 58 in Q1 2018, but we saw fewer luxury price point sales. Only one waterfront property sold in Q1 2019. By comparison, there were 4 waterfront sales in Q1 2018, and looking back further, there were 8 waterfront sales in 2017.
Another notable market change is increased inventory – we saw a 63% increase in Q1 2019 from Q1 2018. As of today, there are 83 current active listings on the market. Recently, we’ve received a number of questions in regard to inventory, since it is an unusually high historic number. While Mercer Island is certainly becoming a more balanced market, we observed that about 25% of the inventory is new construction homes completed in 2018 and 2019.
Many of our readers will remember that a few years ago, the City of Mercer Island updated the residential development code, which led to a buying rush of entry-level properties by builders, who hurried to submit their plans for permitting before the new code went into effect on November 1, 2017. Now those homes are complete, and we have a surplus of inventory in that market segment, thus contributing to more inventory overall.
Properties in the market segment below $2 million that are priced well, that are updated and/or in good condition, and with desirable lot amenities and settings, have generally been seeing favorable market activity, and we expect this segment to do well into Q2 2019, as it is met with demand from active buyers during the busy spring season.
We’ve also noted a longer average market time. While the average market time in Q1 2018 was 38 days, the average market time in Q1 2019 extended to 58 days. Buyers are taking more time to consider their options, and as Mercer Island has become a more expensive market, the buyer pool has become smaller, and first-time homeowners who may have considered Mercer Island a couple of years ago may now be looking in more affordable areas throughout greater Seattle.
Here’s a look at inventory and price trends for most Mercer Island neighborhoods and a one-year trend overview below. These charts also available along with additional trends in our Q1 2019 Mercer Island Year in Review report.
Interested in the real estate trends for the greater region or trends by specific property type? Find additional reports for Seattle, the Eastside, Condo, and Waterfront properties here.
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, CRS, ABR
Managing Broker | Premier Associate
Windermere Mercer Island
Call: 206-992-6151
Email: [email protected]
Erin Sirianni / CRS, ABR
Residential Broker | Premier Associate
Windermere Mercer Island
Call: 206-992-5272
Email: [email protected]
