Mercer Island Home Prices Dip in August

The latest Northwest Multiple Listing Service (NWMLS) statistics for August show real estate price gains gradually slowing on Mercer Island after a hot summer of record-low numbers of homes for sale and continued tight credit for buyers.

Realtors say business remains brisk with more than half of sellers reached agreements with buyers — 61 pending offers were recorded — and 40 homes and condos sold with a median price of $883,725, 11.8 percent higher than the same month last year. But that's 8.9 percent drop in price from last month, when 34 homes sold at a median price of $962,500.

Thirty-four single-family homes were sold at a median price of $937,900 — a 13.6 percent increase compared with last year, but again lower than last month's median price of $1,055,000.

The choice of homes on the market continues to skirt levels usually seen in winter — the local housing market's slow period — rather than summer. Just 115 homes were offered for sale in all of August: 104 single-family homes and 11 condominiums, according to the NWMLS, over 7 percent lower than during the same period last year. According to NWMLS statistics from 2001 to 2012, the closest monthly number Mercer Island Patch could find to compare to that number was 122 homes for sale in August 2005.

Prices on Mercer Island remain well above the King County median, thanks in part to a small inventory, according to an analysis by Lennox Scott, chairman and CEO of John L. Scott Real Estate. It shows King County median prices for August ($392,500, including single family homes and condos) are at 92.4 percent of the peak price of $425,000, set in July 2007. He credits a surge in sales activity and a shortage of homes for sale as primary drivers of spiking prices during the past two years.

“We have seen 22 straight months of strong-surge sales activity,” Scott reported. “Job growth, pent up demand by local home buyers, residential investors, incoming transferees, a strong local economy and historically low interest rates have led the way during this recovery phase of the residential housing market,” Scott said.

The most expensive home sold on Mercer Island in August was actually two homes in one: a Cape Cod-style house with additional rambler on separate tax lot at 7422 North Mercer Way. The 4-bed, 3.5 bath home on .69 acres sold on Aug. 16 for $4,985,000.

The most inexpensive home sold in August was a 2-bed, 1-bath Mercer Isle condo on the third floor, which sold for $165,000. The condo has 965 square feet of living space and was sold on Aug. 15.

As of Sept. 10, there were 122 residential properties on Mercer Island were listed for sale, according to Redfin.com.

Twelve properties for sale are condominiums or town houses, ranging in price from $318,000 to $1.1 million. Single-family homes range in price from $550,000 to $16.75 million.