2012 marked a change of course for Mercer Island home prices with year-over year gains in both the median and average sales price for the first time in five years. Sales activity has continued at a brisk pace with 297 residential homes sales compared to 260 in 2011 and 220 in 2010.
While rising prices are a welcome sight to sellers, buyers are benefiting from our record-low interest rates. The Annual Monthly Cost Index shows that the monthly interest expense of owning a home–what matters most to the bottom line–is on par with that of 1998.
2012 also saw the number of Mercer Island homes for sale drop to its lowest level in the past 15 years (as far back as we have been keeping record). The success of the 2013 real estate market will pivot on the available inventory of homes for sale to meet the demand of serious buyers in the market.
Of the year’s home sales, 106 were above $1,000,000, while only 24 were below $500,000. Bank-owned and short sales made up only 5% of the sales in 2012.
At 45 condominium sales for the year, buyers have purchased almost all of the available units for sale. Distressed sales dropped to 16% as compared to 50% in 2011. While sales prices continue to be impacted by the previous distressed sales, all indications are that they will rise in 2013.
Private waterfront homes continued to sell at a brisk pace with 29 sales in 2012 ranging from $1,132,000 to $21,625,000. The average cost per waterfront foot increased 14% to $39,274 and the average cost per home square foot increased 13% to $780.
With its proximity to major employment centers, excellent schools and strong community presence, Mercer Island continues to be positioned for solid growth in 2013.
Click here for the full report and neighborhood-by-neighborhood statistics!
© Copyright 2013, Windermere Real Estate/Mercer Island. Statistics provided by the Northwest Multiple Listing service and deemed accurate but not guaranteed.