It’s time for a look at the health of the Mercer Island real estate market. Windermere said, “September 2009 Awesome for Mercer Island!”
But was it awesome? Homes were indeed selling this summer:
With the exception of two bigger sales, $4 million was about the top of the market– Mercer Island’s biggest and blingiest homes either weren’t selling or were selling for much less than normal.
Comparing 2009 (YTD) to 2008
More interesting is to look at what homes have been selling for. Here I’ve broken it down by month and neighborhood.
Some interesting findings:
- Prices down: Though it’s hard to see in the line chart, prices have declined from 2008 to 2009. On the Island as a whole, the average price per square foot dropped from $440 per square foot to $341.
- Especially in South Island: South Island houses saw the biggest decline, from $485 per quare foot to $323 per square foot.
- Lower offers: As you might expect with these drops, owners were getting less than they listed their houses for. Average sale-to-original-list price dropped from 91% Island-wide to 87%. This means that in 2008, when an owner put a house for sale, the ultimate price would be on average 91% of the list price (excluding any price drops), but in 2009 the ultimate price would be only 87% on average.
- Volume down: 262 homes sold in 2008 and 176 have sold year-to-date in 2009, with about two months to go.
- More condos: Already 41 condos have sold on the Island vs. 27 last year, probably due to the new developments in the business district.
Methodology & sources: I downloaded the last two years of home sale records from Redfin and did a bit of analysis with them with Tableau Software. Areas are somewhat arbitrarily designated as North Island (north of SE 40th St), Mid Island (north of SE 60th St), and South Island (south of SE 60th St). And by the way, I’m not affiliated with any real estate organization, just a homeowner.
In part 2 we’ll look at listings: homes currently for sale on the Island.