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Summer Heats Up Mercer Island Real Estate Market

Decade-low numbers of homes for sale and an increased number of successful closed sales are returning the local real estate market to something approaching a normal, seasonal cycle

The median price of a single family home sold on Mercer Island rose above $1 million for the month of June, nearly 16 percent higher than the same month a year ago, according to statistics released by the Northwest Multiple Listing Service (NWMLS).

Twenty-eight single-family homes were sold in June at a median price of $1,019,975, compared to a median of $880,975 last year. Mercer Island home values overall, including condos, actually fell slightly to $855,000 on 35 closed sales, about 2 percent lower compared to last June, when 31 homes were sold.

But decade-low numbers of homes for sale and an increased number of closed sales are returning the local real estate market to something approaching a normal, seasonal cycle, with demand at its highest in summer months. There were 18.4 percent fewer homes for sale in June: 115 were for sale in 2012; there were 141 homes on the market in 2011.

According to Redfin.com the mean value of local homes sold was 98 percent of asking price, and a declining number of homes (26 percent) that are sold had offered a price reduction.

There were 41 pending sales for the month.

A tight supply of affordable condominiums, selling in a range of $160-$230 per square-foot, helped keep median prices for Mercer Island below $1 million. Last year there were 19 for sale, but only 1 unit sold. This year, seven condos closed with a median sales price of $240,000.

The most expensive home sold on Mercer Island was a 4,300 square-foot waterfront home built in 2000 in East Seattle at 2749 60th Ave. SE. The 4-bed, 2.75 bathroom home, which sold for $4,690,000 on June 15, rests on a half-acre of land and includes a dock with covered moorage.

The least expensive home that sold was a third-floor, one-bedroom unit at Monaco Villa Condominiums in the Town Center area, sold for $168,000 on June 27. The condominium, located at 2929 76th Ave. SE, is 800 square-feet in size.

As of July 6, there were 111 residential properties on Mercer Island were listed for sale, according to Redfin.com. A mere four properties for sale are condominiums, ranging in price from $170,000 to $389,950. Single-family homes range in price from $449,000 to just under $19 million.

Jerry Gropp Architect AIA July 06, 2012 at 09:10 PM
. I've seen a lot of these RE cycles on Mercer Island. Of course the real trick is to guess the low point. J-
Kendall Watson July 06, 2012 at 09:18 PM
Not nearly as many homes to chose from as yesteryear, however. Seems there's a lot of people hanging on to their homes and hoping the sales prices rise ever higher. Still a lot of economic fundamentals that are pointing in the wrong direction, though.
Greg Johnston July 07, 2012 at 03:55 PM
Realtors I've talked to feel that as soon as home prices go up enough to increase inventory, the market will return to some semblance of normal. They say the homes that are on the market are selling quickly.
Jerry Gropp Architect AIA July 09, 2012 at 03:44 AM
. As far as Mercer Island goes, buyers are always looking for "special situations" at a good price. Things like lake views & wooded ravines. That's how we came to MI. J- http://mercerisland.patch.com/blog_posts/ravine-homes-lots-of-them-are-on-mercer-island

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