Mercer Island Real Estate Market
Mercer Island Housing Market Report
Mercer Island is one of the Pacific Northwest's most constrained real estate markets — a 4,800-acre island with no room to build, sitting between Seattle and Bellevue with 10-minute freeway access to both. Mercer Island School District, island privacy, and Lake Washington waterfront create a demand profile that has sustained the island's premium through every market cycle.
Page author
Adriano Tori
Designated Broker, Founder & CEO — RexMont Real Estate · WA Lic. #27660
Adriano leads RexMont Real Estate — the most-reviewed real estate brokerage in Seattle and the Eastside. 1,200+ closed transactions, $1B+ in production, and 1,241 five-star Google reviews.
As of September 2026, the median listing price in Mercer Island is $2.45M ($789 per square foot), and homes are averaging 39 days on market.
Stats updated September 2026· refreshed monthly and reviewed by RexMont's brokerage team.
By property type
The headline figures above blend every active residential listing in Mercer Island. Single-family, condo, and townhouse markets move differently, so the breakdown below is what to quote when comparing one property type across cities.
| Property type | Median list price | Price / sq ft | Days on market | Active listings |
|---|---|---|---|---|
| Single-family | $2.68M | $819 | 34 | 110 |
| Condo | $550K | $516 | 46 | 13 |
Active listings is the sample size behind each row. Same source and refresh date as the headline figures.
Methodology & data sources
Market statistics on this page — median listing price, price per square foot, and days on market — are computed from active residential listings in Mercer Island, WA, sourced from RentCast, a licensed real-estate data provider aggregating MLS records and county public records. Figures refresh the first week of every month (current data: September 2026) and are reviewed by RexMont Real Estate's brokerage team (WA firm license #21220). Individual property listings shown on this page come from the live NWMLS feed. Historical figures are not restated after publication.
Journalists: monthly figures for 47 Puget Sound cities are available on a citable, dated page for each market. For custom cuts, methodology questions, or to receive the monthly refresh, contact adriano@rexmont.com. Please attribute "RexMont Real Estate market report" with a link to this page.
Thinking of selling in Mercer Island?
Is it a good time to sell in Mercer Island? The numbers above are the market. Your number is your home.
RexMont builds a Mercer Island comparable analysis from closed sales in your neighborhood, not the citywide median, and shows the net after commission, Washington excise tax and closing costs before you decide anything. 1,241 Google five-star reviews; an agent calls back within minutes.
Market context
Why Mercer Island holds its premium.
Mercer Island's market is defined by scarcity. The island cannot expand — its boundaries are Lake Washington — and its zoning has been consistently low-density for decades. When a home comes on the market, it's competing against a small pool of alternatives rather than a deep inventory. This structural constraint keeps values elevated regardless of broader market conditions.
Mercer Island School District is a primary buyer motivation. MISD is a small, high-performing district with a single K-5, middle school, and high school. The intimacy of a small district combined with academic performance comparable to Bellevue SD makes MISD a genuine draw for families who can afford the island entry price.
The location advantage compounds the scarcity premium. From Mercer Island, Seattle's downtown is approximately 10 minutes via I-90; Bellevue's downtown is approximately 10 minutes in the other direction. For executives, lawyers, and senior professionals who need to access both cities regularly, Mercer Island eliminates the directional commute trade-off entirely.
Waterfront tiers are the island's most stratified pricing segment. North-end and south-end waterfront homes with private dock access and unobstructed Lake Washington views trade infrequently at $5M–$20M+. Interior ridge homes command view premiums proportional to their sightline quality. Non-view, non-waterfront homes on the island still carry a significant premium over comparable Eastside cities based purely on MISD access and island cachet.
Coverage
Service area at a glance
RexMont represents buyers and sellers across these Seattle and Eastside markets. Click any city for the full local guide.
Bellevue, WA
ZIPs: 98004 · 98005 · 98006 · 98007 · 98008
Schools: Bellevue SD
Medina, WA
ZIP: 98039
Schools: Bellevue SD
Clyde Hill, WA
ZIP: 98004
Schools: Bellevue SD
Mercer Island, WA
ZIP: 98040
Schools: Mercer Island SD
Kirkland, WA
ZIPs: 98033 · 98034
Schools: Lake Washington SD
Redmond, WA
ZIPs: 98052 · 98053
Schools: Lake Washington SD
Sammamish, WA
ZIPs: 98074 · 98075
Schools: Lake Washington / Issaquah SD
Issaquah, WA
ZIPs: 98027 · 98029
Schools: Issaquah SD
Newcastle, WA
ZIPs: 98056 · 98059
Schools: Renton SD
Woodinville, WA
ZIPs: 98072 · 98077
Schools: Northshore SD
Kenmore, WA
ZIP: 98028
Schools: Northshore SD
Seattle, WA
ZIPs: 98101 · 98109 · 98112 · 98115 · 98118
Schools: Seattle Public Schools
Buying on Mercer Island
Mercer Island buyers must be prepared before inventory appears — the island trades too infrequently to be reactive. Pre-approval at your target price tier, a clear understanding of island pricing tiers, and a buyer agent who is alerted to every listing the moment it hits are the three requirements. RexMont has represented island buyers across the full price range from $1.5M to $10M+.
Talk to a Mercer Island buyer agentSelling on Mercer Island
Mercer Island sellers operate from a position of structural advantage — there is always a qualified buyer pool for island homes. The risk is mis-pricing. Waterfront tiers require precise comparable analysis that reaches across to Madison Park and Laurelhurst; interior homes require accurate school premium pricing versus Bellevue and Kirkland equivalents. RexMont has the transaction history to price both correctly.
Get your Mercer Island home valueLive NWMLS data
Active homes for sale in Mercer Island
The latest active NWMLS listings in Mercer Island, refreshed hourly.
- Median price
- $2.45M
- Median $/sqft
- $789
- Avg days on market
- 39
- Listings for sale
- 95+
Active3 days active · 102 cumulative$3,450,000
MLS# 25875324889 Forest Avenue Se
Mercer Island, WA 98040
5 bd3.25 ba4,910 sqftListing courtesy of COMPASS
Active1 day active · 1 cumulative$880,000
MLS# 25851623206 80th Avenue Se #3
Mercer Island, WA 98040
3 bd1.75 baListing courtesy of Realogics Sotheby's Int'l Rlty
Active4 days active · 20 cumulative$1,850,000
MLS# 25871444057 96th Avenue Se
Mercer Island, WA 98040
4 bd3.5 ba2,140 sqftListing courtesy of Realogics Sotheby's Int'l Rlty
Active4 days active · 4 cumulative$900,000
MLS# 25871607800 Se 27th Street #206
Mercer Island, WA 98040
2 bd2 baListing courtesy of Windermere Real Estate/East
Active5 days active · 76 cumulative$2,385,000
MLS# 25858625 Lindley Road
Mercer Island, WA 98040
5 bd1.75 ba3,350 sqftListing courtesy of COMPASS
Active7 days active · 7 cumulative$10,680,000
MLS# 25853558493 W Mercer Way
Mercer Island, WA 98040
5 bd4.75 ba5,370 sqftListing courtesy of COMPASS
Showing the 6 newest of 95 active homes for sale in Mercer Island, pulled directly from NWMLS and refreshed hourly. See all 95 Mercer Island homes for sale, each with photos, price history, and a per-listing mortgage estimate.
Listing data courtesy of NWMLS. Provided for the consumer's personal, non-commercial use. Market stats reflect representative market data for Mercer Island; current listings and individual neighborhoods may vary.
Search all Mercer Island listings →Related markets
Compare Mercer Island to nearby luxury markets.
Bellevue Market
BSD schools and downtown Bellevue proximity — the natural comparison for Mercer Island buyers and sellers.
Seattle Market
Seattle's luxury neighborhoods — Madison Park, Laurelhurst, and Capitol Hill — for buyers comparing city to island.
Mercer Island Waterfront
Lake Washington waterfront homes on Mercer Island — dock access, views, and the island's most exclusive tier.
Mercer Island Luxury Homes
Luxury home listings on Mercer Island — estates, ridge views, and island prestige properties.
Eastside Overview
The full Eastside market for buyers weighing Mercer Island against other Eastside communities.
Work With a Mercer Island Real Estate Agent
Waterfront valuation, MISD timing, and the island's thin-inventory offer strategy from RexMont's Mercer Island team.
FAQ
Questions buyers and sellers ask first.
What is the median home price on Mercer Island?
Mercer Island median home prices typically range from $1.8M to $2.5M depending on the quarter. Waterfront homes trade at $3M–$20M+. The island has essentially no entry-level inventory — the lowest-priced homes are typically smaller lots or older condition properties starting around $1.3M–$1.6M.
Which school district serves Mercer Island?
All Mercer Island homes are served by Mercer Island School District, a small, highly-regarded district with a single high school. MISD consistently ranks near the top of Washington school systems and is a primary reason buyers pay the island premium.
Is it hard to find homes for sale on Mercer Island?
Yes. Mercer Island is a constrained island with no room to build — inventory is limited to whatever existing homeowners put on the market. Annual turnover is low, and when good homes appear they typically sell quickly. Buyers who wait for the right listing often miss it without preparation.
How does Mercer Island compare to West Bellevue?
Mercer Island and West Bellevue/Medina are natural comparables for luxury buyers. Mercer Island offers island privacy, MISD schools, and Seattle freeway access; West Bellevue and Medina offer BSD schools, more inventory, and downtown Bellevue proximity. Buyers who value island living and MISD consistently choose Mercer Island even at equivalent prices.
Does RexMont sell homes on Mercer Island?
Yes. RexMont has represented buyers and sellers across Mercer Island including waterfront estates, island ridge homes, and traditional neighborhood properties. Our experience spans the full island market from under $2M to $10M+.
Mercer Island requires an island-specialist.
Island real estate trades differently — infrequently, competitively, and at price tiers where the right agent relationship matters enormously. RexMont has 1,241 Google 5-star reviews and direct Mercer Island transaction experience at every price level.
Talk to a Mercer Island real estate expert