Market Trends

Q1 2018 MARKET REPORTS:

Click to view quarterly market reports for Mercer Island, Seattle and The Eastside.
Published April 2018

Mercer Island Report Seattle Report Eastside Report

Q1 prices in the Seattle-Eastside region have escalated yet again with no sign of slowing in the immediate future. An unprecedented lack of inventory for sale coupled with rising interest rates has prompted buyers to compete with reckless abandon to win the prize of their very own home, albeit with a steep price tag.

Overall median prices in Seattle rose 16.1% to $770,000, while the Eastside rose 13.0% to $944,000. Those regional numbers certainly don’t tell the whole story, especially when you consider the highest change in median sale price was nearly 46% and the lowest was a -4%. New construction sales, or lack thereof, made the biggest impact on home sale prices. Existing homes, offering good walkability or commute options, and those that were on the more affordable end of the pricing spectrum saw the strongest appreciation overall.

Rising mortgage interest rates, now up a full percentage point from their lows, are adding fuel to the fire. While not dampening buyer demand yet, further increases will likely begin to price home buyers out of the core Seattle-Eastside region. Homebuyer fear of being priced out of the market is at least partly to blame for the crazed demand at more modest price points.

As predicted, many who don’t have a need to be close in to the metro region are choosing to sell at a high and buy more affordably outside of the Seattle-Eastside area. The rate of tear-down new construction infill has escalated at staggering numbers as builders capitalize on the market’s appetite for fresh and new.

Buyers today should consider their purchase thoughtfully as buying at or near the peak of the market can limit their resale options when the market corrects. Planning to stay put for five to seven years is a good strategy at this time.

 

WATERFRONT Q1 2018 Market Report:

Click to view the quarterly waterfront report for Mercer Island, Seattle and the Greater Eastside.
Published April 2018

Waterfront Report

 

CONDO Q1 2018 Market Report:

Click to view the quarterly condo report for Mercer Island, Seattle and the Greater Eastside.
Published April 2018

Condo Report

© 2018 Windermere Real Estate/Mercer Island
Information and statistics derived from Northwest Multiple Listing Service.

 

King County Sales Trends:

Seattle Sales Trends:

Eastside Sales Trends:

Mercer Island Sales Trends:

2017 YEAR END REVIEWS:

Click to view annual market reports for Mercer Island, Seattle and The Eastside.
Published January 2018

Mercer Island Report Seattle Report Eastside Report

Seattle area real estate paid off big yet again in 2017 with a 14.1% median price increase to $708,000. The Eastside fared even better—up 15.2% to $868,000. In fact, over the past five years, prices are up 58.7% and 54.8% respectively. A Seattle house that was $446,000 in 2013 would sell for a whopping $708,000 today, or $262,000 more.

Stack that up against nearly any other investment—oh, and don’t forget that gain is based on the value of the entire asset and not just what you invested in it (i.e. down payment and closing costs). If you purchased said home in 2013 for $446,000, putting 20% ($89,200) down and financing the remainder with about $10,000 in loan fees, you would have invested about $100,000 for a gain of $262,000. A 262% return in five years assuming no major improvements were made.

While 2018 should be another good year for real estate, it might not see the hefty appreciation gains of 2017. Expect to see some slowing and a build-up of inventory in the luxury sector while the tight supply of entry-level homes steals the attention (and dollars) of would-be buyers. Other big winners will be highly coveted one-level homes that allow boomers to age in place, and communities with high walkability or those adjacent to highly-reliable rapid transit.

Seattle’s higher cost of living (and traffic) may push telecommuters and retirees alike further from the Seattle-Bellevue metro region as they cash-in their blooming equity for a lower-cost lifestyle in the burbs and beyond—leaving the costlier in-city abodes to high-income earners who want the hip urban life despite the cost.

 

WATERFRONT 2017 YEAR END REVIEW:

Click to view the annual waterfront report for Mercer Island, Seattle and the Greater Eastside.
Published January 2018

Waterfront Report

 

CONDO 2017 YEAR END REVIEW:

Click to view the annual condo report for Mercer Island, Seattle and the Greater Eastside.
Published January 2018

Condo Report

© 2018 Windermere Real Estate/Mercer Island
Information and statistics derived from Northwest Multiple Listing Service.

 

King County Sales Trends:

Seattle Sales Trends:

Eastside Sales Trends:

Mercer Island Sales Trends: