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1 Q waterfront activity report mercer island, seattle and the greater eastside THEWATERFRONTREPORT.COM windermeremercerisland.com

2 Q SEATTLE waterfront report NUMBER OF HOMES SOLD AVERAGE SALE PRICE (M) $2.2 $2.1 $2.2 $2.0 $1.9 PRIVATE WATERFRONT SALES Year Square Lot Sale Price Per Acre Per Front Address Community Built Feet Acres (M) (M) Ft (T) th Ave E Washington Park $.0 $2.6 $83, Webster Pt Rd NE Laurelhurst $3. $9.6 $40, rd Ave NE Laurelhurst $3.4 $7.0 $90, Beach Dr NE Sheridan Beach $2. $4.3 $29, Edgewater Ln NE Sheridan Beach $1.8 $10.6 $2, Beach Dr NE Sheridan Beach $1.7 $2.9 $18, Riviera Pl NE Matthews Beach $1.4 $9.8 $4, Beach Dr SW West Seattle $2.0 $9.3 $39, Beach Dr SW West Seattle $1.9 $6.9 $24, Beach Dr SW West Seattle $1.4 $2.2 $27,000 MONTH'S SUPPLY OF INVENTORY SOLD % OF LIST PRICE 101% 9% 97% 93% 94% NOTABLE ACTIVITY IN SEATTLE Seattle s diverse private waterfront consists of both rugged Puget Sound saltwater coastline and protected Lake Washington shoreline, along with a number of smaller bodies of water (not included in this report). Of Q2 s 10 waterfront sales, 6 were sited on Lake Washington north of 20, 1 on Lake Washington south of 20, and 3 on Puget Sound in West Seattle. The highest sale, at $ million, was a Washington Park 192-built, 4296 square foot, Harrison Overturf designed mid-century modern remodeled in 1998 by Ralph Anderson with 60 feet of prime waterfront. Listed at $,40,000, it sold in 21 days at 92% of its asking price. The most affordable private waterfront home, a 1912 West Seattle Craftsman listed at $1,27,000 and sold for $1.3 million in 7 days. Located just steps from Lincoln Park, this 2930 square foot home was sited on a shy 2/3 acre (with much of the land as tide flats) and had feet of frontage on Puget Sound. DAYS ON MARKET seattle snapshot Average Sale Price (M) $2.4 Highest Sale (M) $.0 Lowest Sale (M) $1.4 Average Home Size (sq ft) 4,206 Average Lot Size (acres) 0.36 Average Front Feet 64

3 Q MERCER ISLAND waterfront report PRIVATE WATERFRONT SALES Address Community Year Built Square Feet Lot Acres Sale Price (M) Per Acre (M) Per Front Ft (T) 6226 E Mercer Wy East Mercer $2.3 $8.2 $28, E Mercer Wy South End $3. $.4 $34, W Mercer Wy Westside $3.6 $.8 $36, W Mercer Wy Westside $7. $9.7 $36, Avalon Place Beach Club $3.9 $11.9 $62, Roanoke Wy North End $.0 $12.6 $48,676 NOTABLE ACTIVITY ON MERCER ISLAND The pace of Mercer Island waterfront sales has slowed from 1 pending listings in Q2 201 to 8 during the same period this year. Closed sales are less than half of their typical pace from 14 in 201 to 6 during the same April-June time frame. This has resulted in a dramatic climb in the Month s Supply of Inventory from 4 months in Q2 201 to 9 month s supply in 2016 during a time when the market has otherwise been brisk. Of the 6 homes sold, 2 were Westside, 2 South End, and 1 each North End and Eastside. The highest sale, at $7. M, was of a 1989 traditional with 630 square feet on two extraordinary, side by side buildable waterfront lots with 204 feet of low bank West facing Gold Coast waterfront. Listed at $8,188,660, this home sold in 1 day at just shy of 92% of its listed price. Only one private waterfront home sold below $3 M in the second quarter. It was an Eastside, 192-built, 2400 square-foot basement rambler on a quarter acre lot with 80 feet of waterfront listed at $2,298,000 and sold for $2,290,00 after 14 days on the market. NUMBER OF HOMES SOLD AVERAGE SALE PRICE (M) $3.9 $3.9 $3.8 $3.8 $3.7 MONTH'S SUPPLY OF INVENTORY SOLD % OF LIST PRICE 91% 99% 99% 92% 98% mercer island snapshot Average Sale Price (M) $4.3 Highest Sale (M) $7. Lowest Sale (M) $2.3 Average Home Size (sq ft) 4,863 Average Lot Size (acres) 0.0 Average Front Feet 107 DAYS ON MARKET

4 Q EASTSIDE waterfront report NUMBER OF HOMES SOLD AVERAGE SALE PRICE (M) $3.9 $3.8 $3.6 $3.7 $3.6 MONTH'S SUPPLY OF INVENTORY SOLD % OF LIST PRICE 96% 96% 97% 92% 90% DAYS ON MARKET PRIVATE WATERFRONT SALES Year Square Lot Sale Price Per Acre Per Front Address City Built Feet Acres (M) (M) Ft (T) 104 Cascade Key Bellevue $. $4.4 $0, Pleasure Pt Ln SE Bellevue $1.6 $. $32, SE Lake Rd Bellevue $2.8 $2.6 $2, Hunts Pt Rd Hunts Point $8.0 $7.2 $102, Hunts Pt Cir Hunts Point $3.0 $9.3 $37, st Ave NE Kenmore $1.9 $3.2 $23, NE Arrowhead Dr Kenmore $2.4 $9.0 $26, th St W Kirkland $3.3 $3.7 $3, th Ave W Kirkland $.0 $8. $86, Holmes Pt Dr NE Kirkland $2.1 $.0 $19, Champagne Pt Rd NE Kirkland $3.9 $1.3 $64, Holmes Pt Dr NE Kirkland $1.9 $9.3 $22, Holmes Pt Dr NE Kirkland $2.3 $13.1 $32, Evergreen Pt Rd Medina $.9 $3.8 $0, th Place NE Medina $6.7 $11.7 $112, Ripley Lane N Renton $1.1 $3.4 $8,000 NOTABLE ACTIVITY ON THE EASTSIDE Of the 16 private waterfront sales in Q2, half sold above $3 million. Kirkland had the highest concentration of sales, although not surprisingly, Medina ($6.3 M) and Hunts Point ($. M) boasted the highest average sale prices. Twenty-five new listings entered the market increasing the average listing count to 36 active listings. The pace of sales slowed, with only 17 pending sales reported between April and June in 2016 as compared to 30 during the same period last year. Scarcity in highly desirable market segments west facing, turn-key or blank slate, and with optimum usable land has been met with an overabundance of supply in other segments. This brought the average days on market of sold listings to a startling 23 while other homes remained on the market waiting for just the right buyer. eastside snapshot Average Sale Price (M) $3.6 Highest Sale (M) $8.0 Lowest Sale (M) $1.1 Average Home Size (sq ft) 4,283 Average Lot Size (acres) 0.62 Average Front Feet 8

5 Q LAKE SAMMAMISH waterfront report PRIVATE WATERFRONT SALES Address Year Built Square Feet Lot Acres Sale Price (M) Per Acre Per Front (M) Ft (T) E Lake Sammamish Shore Lane SE $1. $14.3 $46, th Ave SE $3.8 $10.9 $42,898 NUMBER OF HOMES SOLD NOTABLE ACTIVITY ON LAKE SAMMAMISH In spite of 14 new listings for sale, inventory on Lake Sammamish has been scarce averaging 13 active listings in Q2. Twelve pending sales are on the books awaiting closing but only 2 sales were actually closed the lowest number of quarterly closings in many years. The highest Lake Sammamish sale was listed at $3,788,000 and sold near asking price at $3,77,000. A spectacular,87 square foot, 2010-built award-winning traditional with 20 foot ceilings and sited on 88 feet of sandy level beach with its own private dock. Located on the east side of the lake and north of Lake Sammamish State Park, this home sold at nearly 100% of its list price in early April after 11 days on the market. The second private waterfront home sold in Q2 was listed at $1,9,000 million and sold at $1,487,00 in April after 17 days on the market. It was a 2000-built home with a mere 1,810 square feet on a sliver of land with 32 feet of waterfront along the east side of the lake. AVERAGE SALE PRICE (M) $2.4 $2. $2.1 $2.1 $2.1 MONTH'S SUPPLY OF INVENTORY SOLD % OF LIST PRICE 97% 99% 96% 94% 98% lake sammamish snapshot Average Sale Price (M) $2.6 Highest Sale (M) $3.8 Lowest Sale (M) $1. Average Home Size (sq ft) 3,843 Average Lot Size (acres) 0.22 Average Front Feet 60 DAYS ON MARKET

6 LOCAL WATERFRONT communities SEATTLE Notable waterfront communities along Lake Washington include Matthew s Beach, Sand Point, Windermere, Laurelhurst, Mount Baker and Leschi. On Puget Sound, private waterfront homes are located just north of Discovery Park along the inlet to the locks, in Magnolia along Perkins Lane, and in West Seattle along Alki and Fauntleroy. MERCER ISLAND THE EASTSIDE Mercer Island s private waterfront homes are situated along the shores of Lake Washington around the perimeter of the Island. While it s an island, Mercer Island is connected to Seattle and Bellevue via Interstate 90 making it an ideal location to commute to either metro locale. The sunny west side of the Island benefits from afternoon sun, Seattle views, and spectacular sunsets. The rugged eastside is more forested in true NW style with brilliant sunrises and afternoon shade. The Eastside s private waterfront is sited along Lake Washington from just north of St. Edwards State Park to Newcastle Beach Park; encompassing the cities of Kenmore, Kirkland, Bellevue, Medina, Newcastle and Renton. This region includes many desirable points, bays and vistas especially those centrally located in the Yarrow Point, Hunts Point and Medina neighborhoods. Most Eastside waterfront homes enjoy exceptional sunsets from their vantage point along the eastern shoreline. Many homes feature Seattle or even Bellevuecity skyline views and are low or no-bank waterfront providing level beach access and spacious docks. A bluff and the Burlington railroad track runs from Richmond Beach past waterfront landmarks such as Carkeek Park, Golden Gardens, Shilshole Bay, and the Ballard Locks separating many prominent water view communities from the waterfront. LAKE SAMMAMISH Lake Sammamish is the sixth largest lake in the state of Washington, located 8 miles east of Seattle and just north of the I-90 corridor. The lake is an outstanding freshwater community with a 24-mile circumference and an abundance of local recreational activities. It is bordered by two large and active regional parks Marymoor Park to the north and Lake Sammamish State Park to the south. The sunny east side of the lake benefits from afternoon sun and stunning sunsets. The shady west side boasts morning sun and is more likely to offer forested protection from the elements. Lake Sammamish enjoys convenient access to Bellevue, Seattle and the Microsoft campus.

7 LIVING ON THE WATER is a lifestyle By Premier Director Kelly Weisfield. Enjoying direct and private access to the water is typically the primary motivator for buyers seeking a waterfront property. As such, it s really important to consider how you intend to use your waterfront. For example, if you re a boater, evaluate the moorage at the property. Is the water deep enough for your particular type of boat? Is there a boat lift to keep the boat out of the water when not in use, or do you plan to dry dock for the winter? If you re looking forward to peaceful days on your stand-up paddleboard, is the water in front of your home typically choppy or calm? When you entertain, is there ample parking for guests or space for visitors to tie up their boats on your dock? The golden rule of real estate, location, location, location, is even more true when considering a waterfront property. The ratio of land value to total property value is generally higher in waterfront properties. You can always update and change your home, but you cannot change the location. Consider especially the following features of the property: Waterfront properties are subject to very strict regulations and codes from various local, state and federal agencies. These limitations are likely to get even more restrictive in the near future as the shoreline regulations are being updated. If you re planning to build or significantly remodel, do a thorough feasibility analysis given city codes and shoreline regulations and engage an architect and builder who have significant experience building waterfront properties in your area. There is a reason that owning a waterfront home is a life-long dream for so many people it brings an extraordinary lifestyle. As a significant financial investment and very unique type of real estate, it s especially critical to engage professionals who understand the complex issues inherent in waterfront properties. Equipped with the right expertise, guidance and knowledge, you ll be ready to turn to your waterfront dream into a reality. View. One of the great perks of being on the water is enjoying the beautiful views. Understand if your view is protected by CC&Rs or view easements. Identify any viewobstructing trees or structures and your ability to maintain your view. Proximity to the Water. If the home is not close to the shoreline, consider how you ll access the water. If you plan to entertain lakeside, think about how you ll get food, beverages and supplies down to the waterfront easily. Directional Orientation. East-facing waterfront will allow you to enjoy wonderful sunrises. If you prefer sunsets, west-facing waterfront is preferable. South-facing properties generally enjoy light all day but can also experience more direct weather. Privacy. The property s feeling of privacy usually corresponds to its waterfront frontage. The larger your waterfront frontage, the more buffer you ll have from your neighbors. Topography of the Land. Is the waterfront property on a level lot or a steep slope? Access to the water is easier on a flat lot many lakefront lots are steep and can be difficult to get up and down to. Again, this impacts the value of the property.

8 WAIT THERE S MORE! HOMES & STATS ONLINE While having an historical perspective like this annual review is valuable, you may be looking for real-time information on today s real estate market. If so, your search is over! We publish weekly reports to TheMarketTalks.com, providing a summary analysis of what s happening in 16 different micro-markets, including Mercer Island. Interested in what s happening with waterfront properties? We are too! That s why we analyze waterfront sales each month and post results at TheWaterfrontReport.com. Easily compare neighborhoods on LiveOnGuides.com with local info including maps, links and school data. You can search for every property listed for sale by any real estate company on WindermereMercerIsland.com. Data prepared and analyzed by Windermere Real Estate/Mercer Island from NWMLS provided data. For questions or comments, Julie Barrows at julie@windermere.com Windermere Real Estate/Mercer Island REAL ESTATE BROKER, SRES INABAHNER@WINDERMERE.COM INA BAHNER

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