2016 YEAR IN REVIEW
Mercer Island experienced an extreme shortage of homes for sale below $1 million and an overabundance of homes above $2 million in 2016.
Mercer Island’s real estate market was greatly compromised by a severe shortage of moderately affordable homes for sale. 230 of the 289 homes sold in 2016 were priced above $1,000,000—and 56 of those were priced above $2,000,000. Inventory tightened as the year progressed and the Island ended the second half with only a handful of homes for sale that were below the $2 million mark. The few homes priced below the $1 million price point were snatched up at aggressive prices while many homes in higher price segments sat out the dance on the sidelines.
The median sale price of single-family homes on the Island increased by 10.0% in 2016. The average cost per square foot kept pace evenly, increasing 10.1% to $497.
Many buyers looking to own on Mercer Island in affordable price ranges have turned to the very modest supply of condominiums for sale—with most condos having sold in mere days at an average of 2% above their listing price.
It is unsettling to see so few moderately affordable homes for sale on the Island and the dynamics of the market may change the Island community. We expect to see a continued strong seller’s market in 2017.
After beginning the year very low, interest rates rose briskly to 4.25% in the last weeks of 2016. The annual average for a conventional 30-year fixed rate mortgage was 3.65% in 2016.
Click here for the full report and neighborhood-by-neighborhood statistics!
© Copyright 2017, Windermere Real Estate/Mercer Island. Statistics provided by the Northwest Multiple Listing service and deemed accurate but not guaranteed.