2008 MERCER ISLAND RECAP
• LISTING INVENTORY in the third quarter decreased slightly from 195 properties on the market at the end of June to 192 by the end of September, a change of -1.59%. This continues a trend where inventory growth has not only slowed but has begun to reverse itself. The average price for listed properties so far this year has remained flat for two quarters at the $2,300,500 level compared to $2,946,500 for 2007, a change of -28%. The median price for an active listed home is $1,419,250 which is down 16% compared to the third quarter 2007 which came in at $1,690,000.
• PENDING SALES are properties that went from an active listing status to a pending sale status (offers made and accepted, but not yet closed). Pending sales for the third quarter of 2008 were down 33% from last year with 262 homes going pending in the first three quarters of 2007 and 176 going pending through September of this year. The decline in the number of pending transactions has been at the 30% mark for two quarters. The good news on pending prices continues for Mercer Island residents in that the average listed price for pending sales through September is $1,667,835 ($1,466,446 in 2007), a change of 12.07%.
The median list price for pending sales has remained flat at $1,100,000 from third quarter 2007 through the end of September of this year.
• SOLD AND CLOSED properties on Mercer Island are beginning to show the effects of the slow down in the broader Puget Sound market. Through the third quarter of 2008, 163 properties closed on Mercer Island compared to 239 for the first three quarters of last year, a change of -31%. Again the number of units sold has remained steady at 30% below last year for over six months. The average price for a sold property during 2008 is $1,472,219 ($1,364,345 in 2007), a change of 7.91%. The median sales price for sold properties through September of 2008 is right at $1,050,000 exactly the same as in 2007. The average time on the market for sold properties has fallen in the third quarter to 77 days down from 80 days at midyear but up from 55 days in the third quarter of 2007.
• THE MARKET the first three quarters of this year continues to show strength in prices on Mercer Island. While inventory is up and the average listing price is lower than last year the fact that average sales prices are up nearly 8% and median prices are flat again underscores the strength in our local market. While inventory seems to have reached its peak and has actually begun to drop prices are flat or are up slightly depending on the statistic you look at. Buyers continue to recognize the value of the Mercer Island community. While the fourth quarter will most likely reflect the problems in the larger US economy we expect prices on the Island to remain stable.
2008 SOUTH BELLEVUE MARKET RECAP
• LISTING INVENTORY: 2008 listing numbers through the third quarter of the year remain flat with a total of 1,346 homes coming to market this year (1,376 in 2007), a decrease of 2.2%%. The average list price for September 2008 is $996,843 compared to $1,029,530 for 2007, a decrease of only 3.2%. The median price for an active listed home in September of this year $765,000 a change of -2.6% compared to $785,000 in September of 2007. The average market time for active listings is 97 days compared to 86 days in 2007.
• PENDING SALES are homes that went from an active listing status to a pending sale status (offers made and accepted, but not yet closed). Pending sales for 2008 total 550 (852 in 2007), a change of - 35.5%. The average asking price for a pending home is at $657,065 slightly up from $653,354 in September of 2007. The median list price for pending sales is $628,500 ($689,970 in 2007) a change of -8.9%
• SOLD AND CLOSED properties for 2008 so far total 479 (777 in 2007) a change of -38.35%. The average sales price of homes sold through September of this year is $706,109 which is 8% less than a home sold for last year ($767,557). The median sales price for a sold property through the third quarter of 2008 is down 9.34% over the third quarter of 2007, $621,000 in ’08 Vs $685,000 in ‘07 The average time to sell a home is 88 days (65 days in 2007).
• THE MARKET in area 500 appeared to be recovering at mid-year. That recovery seems to have stalled. While the inventory of homes for sale is flat the numbers of pending and closed sales are still down over 30% from this time last year. And while average and median sales prices were up in June they are now down 8% and 9% respectively. What we hoped was a trend in June has not carried through to September. Certainly these decreases look modest compared to the losses in the general financial markets and underscore the fact that even in troubled times real estate is still one of the best investments around. The real issue may be whether the broader problems in the US economy will create more softness in area 500 during the next quarter. While low interest rates and a continuing strong local economy make it a great time to buy in South Bellevue many buyers are still taking a wait and see attitude.
• Statistics compiled from the NWMLS statistical report 10/01/2008.
