Real estate stats are in for the second quarter (Q2) of 2018, and here are our latest infographics and reports to give you insight into the Mercer Island real estate market.
Overall median prices in Seattle rose 11.3% to $801,000, while the Eastside rose 9.1% to $960,000. On Mercer Island, the median sale price for Q2 2018 was $1,662,000, marking a 4.5% appreciation increase from the median sale price of $1,560,000 in Q1 2017.
Home mortgage interest rates have continued to rise, averaging 4.54% in Q2 putting continued pressure on buyers to purchase before they are simply priced out of the Seattle-Eastside market. The region is now entering a sweet spot where home prices are stabilizing and have likely peaked but interest rates are still affordable. Because rising interest rates have a much larger impact on the monthly mortgage than home price, values would have to fall pretty sharply to offset the impact of a 1-2% increase in mortgage interest rates.
Signs of transition to a more balanced market are becoming abundantly clear as we move further into 2018. As we discussed last month, the number of homes sold on Mercer Island has dropped, and price growth, while still climbing, is starting to level. We’re seeing more homes go under contract “pending inspection”, as buyers, facing less competition, have more leverage at the negotiation table and are including inspection contingencies with their offers.
There are still some homes that are attracting multiple offers and commanding incredible prices and terms, but as inventory increases, homeowners who are getting ready to sell their properties should expect a more balanced negotiation with a potential buyer of their home.
Mercer Island and the greater Seattle area have needed this return to balance for a very long time. It is likely that buyers who were beaten down and bruised over the past couple of years will return to the house hunt, but it will likely be on their own terms. Waiving all contingencies, releasing earnest money to the seller up front, and giving the seller a period of free possession after closing will be reserved for only the most coveted homes.
On the other hand, being able to conduct thorough due diligence on a prospective home over a comfortable period of time after offer acceptance is a buyer right that is returning to the picture. It has been a long time since that was “the norm” on Mercer Island and in the greater Seattle area in mainstream price points. Yet that equalization of power is long overdue and needed to stabilize the market.
As always, we are here to help you navigate the changing market, as we have helped other clients successfully buy and sell their homes on Mercer Island and throughout the greater Seattle area in recent months. Get in touch anytime.
Mercer Island, Seattle & Eastside Market Reports
For a complete overview of last quarter’s numbers and trends for the Mercer Island market, as well as for Seattle and the Greater Eastside, check out our reports below:
Reach out to us for a free, no-obligation market analysis for your home.
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
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]
