We are enjoying these clear, cold days on Mercer Island and seeing the neighborhoods fill with holiday lights. There is a two-story Santa that now stands in our neighborhood, and for another fun inflatable display, you’ll find the entire casts of Disney and Star Wars in a festively decorated home (pictured above) just off of Merrimount Drive and Island Crest Way (if you haven’t spotted it already!).
The holiday season has also brought a seasonal real estate slowdown, which means fewer new listings though buyers have remained very active. While October brought a swell of new listings bringing inventory to its highest level in a year (72 available homes for sale at the end of the month), November marked the lowest inventory level in a year with only 43 homes available for sale at the end of the month. Some listings were cancelled as homeowners opted to take their properties off the market during the busy holiday season, though the majority were purchased by eager buyers anticipating the lean month of December, which historically brings the fewest number of new listings to the market every year.
Inventory was also down approximately 30% throughout the greater Seattle Area in November, and in local real estate news, The Seattle Times noted Seattle’s condo shortage, where buyers are now paying an average of $500,000 for a one-bedroom condo. The Puget Sound Business Journal reported that buyers lined up 18 hours to purchase condo units in the upcoming Nexus tower in Denny Square.
The Times also noted the low inventory in the single-family home market in Seattle and the Eastside, continued increases in home prices, and the average income now needed to afford the monthly mortgage payments on a median priced home in Seattle.
We were also curious to read Windermere’s Chief Economist Matthew Gardner’s predictions for the 2018 housing market.
An Overview of Mercer Island’s Single-Family Residential Market
In November, there were 12 new listings on Mercer Island, a considerable drop from the 38 new listings that came on the market in October, though a year-over-year increase from November 2016, which brought only 8 listings to the market.
The number of sales was very similar month over month. November marked 24 sales, including the sale of a $6.8 million waterfront home, a $3.1 million waterfront home, and 4 new construction homes (all with sale prices above $2.5 million) – note the exceptionally high median and average sale price figures in the table below. Sales were also consistent year over year, as there were 24 sales in November 2016.
A quick note about our new “Trends at a Glance” table in regard to median and average sale price: The Mercer Island monthly sales data set is small, and we provide the median and average sale prices from one month ago and one year ago as an interesting comparison. However, waterfront or luxury sales can skew the average and median monthly sale prices to the high side. To get a more accurate sense of appreciation on Mercer Island, we suggest that you look at quarterly and annual Mercer Island market reports.
A Snapshot of the Current Inventory
As of today, Mercer Island has 39 active listings available (with only one single-family home priced below $1.25 million), and inventory will likely continue to dip through December. If this year is similar to last year, buyers can look forward to more new listings in January (January 2016 brought 31!), and we expect an active first real estate quarter in 2018.
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.
November 2017 Real Estate Market Stats
Single-Family Residential Market (All)
- 12 new listings
- 24 sold homes
- Average sold price: $1,955,225
- Median sold price: $1,720,000
- Lowest sold price: $900,000
- Highest sold price: $6,800,000
- 12 new listings
- 22 sold homes
- 0 new listings
- 2 sold homes (1 Westside, 1 Eastside)
- Lowest sold price: $3,135,000
- Highest sold price: $6,800,000
Mercer Island Condo Market
- 1 new listing
- 1 sold listing
- Sold price of listing: $389,000
Mercer Island “Nosy Neighbor Report” – November 2017
Here’s our new 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.
Current Mercer Island Listings
By Home Type / Location
- Mercer Island Condos
- Single-Family Residential Homes (All)
- New Construction Homes
- Waterfront Homes
- Search by Neighborhood
- $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
Windermere Mercer Island