Real estate stats are in for the second quarter (Q2) of 2017, and here are our latest infographics to give you a visual snapshot of what’s happening in the Mercer Island real estate market.
We saw double-digit appreciation (11%) in comparing average sale price over Q2 2016 for all Mercer Island residential sales. As we observed in our Q1 2017 market report, sometimes a few big luxury sales can skew the numbers, however when we compared all non-waterfront residential sales, we saw an even bigger appreciation rate – 16% over Q1 2016 (infographic below).
We’re often asked what we think is in the future for Mercer Island’s real estate market, and while we don’t have crystal ball, it’s often insightful to share local economic trends that point toward a continued strong sellers’ market and similar rates of appreciation.
For example, a recent Curbed.com article noted that housing construction isn’t keeping up with local job growth. According to the article, jobs in the Seattle Metropolitan area “grew more than twice as fast as housing from 2010 and 2015, with more than two jobs for every new unit of housing permitted.”
That makes for a hyper-competitive market for buyers, especially considering that since 2010, about 1,100 people move to the Greater Seattle area every week.
It’s the simple law of supply and demand that’s contributing to our steady rates of double-digit appreciation increases. As the supply of homes on Mercer Island remains low and demand continues to be high, then our housing prices will continue on the same upward trajectory.
The City of Mercer Island, along with all cities in Washington, are required by law (the Washington State Growth Management Act – GMA) to help accommodate the regional growth. Though with our shortage of vacant land, our contributions are mostly made through new apartment complexes in Mercer Island Town Center. In fact, the forthcoming Aegis Assisted Living Center on Mercer Island recently broke ground on SE 24th Street and will provide 89 new residences on the island.
Mercer Island also has about 60 new construction homes built on Mercer Island every year since 2013; however, these homes often replace smaller existing homes and don’t count toward meeting our GMA requirements.
Ultimately, due to Mercer Island’s geography as an island of developed neighborhoods in a desirable location between two major metropolitan areas, our local market will probably always lean toward a sellers’ market as long as the Seattle economy is strong.
That’s our best guess, though we would still love to have a crystal ball.
Mercer Island, Seattle, Eastside, Waterfront & Condo Market Reports
For a complete overview of last quarter’s numbers and trends – Mercer Island, Seattle, and the Greater Eastside – check out the full reports below:
Let us know if you would like a free, no-obligation market analysis for your home. We would be happy to help!
Questions? Feel free to reach out anytime!
Windermere Mercer Island
My MI Founder & Editor / Residential Broker
Windermere Mercer Island