Market Overview
Home Prices in Mercer Island, WA
The median home value in Mercer Island, WA is $2,328,509 as of mid-2026, according to Zillow's Home Value Index (ZHVI).That's down 2.2% compared to a year ago and up 2.4% from two years prior.
Compared to the U.S. national median of $410,000, homes in Mercer Island are priced468% above average. Mercer Island is part of the Seattle-Tacoma-Bellevue, WA metro area.
Over the past five years, Mercer Island home values have risen by approximately18.0%, reflecting steady appreciation in this market.
Price History
Mercer Island Home Price Trend
City Comparison
Mercer Island vs. National Median
At $2,328,509, homes in Mercer Island cost 468% above the national median of $410,000. Buyers in Mercer Island should expect to pay a premium compared to most U.S. markets.
Affordability
What Does It Cost to Buy in Mercer Island?
20% Down Payment
$465,702
on $2,328,509
Monthly P&I
$12,144/mo
30-yr @ 6.8%
Total Monthly Est.
~$15,423/mo
incl. taxes & insurance
Income Needed
$616,920
gross annual (30% rule)
10% Down Option
$232,851
+ PMI applies
Loan Amount (20% dn)
$1,862,807
at current rates
Estimates assume a 30-year fixed mortgage at 6.8%. Monthly total includes estimated property taxes and homeowner's insurance. Actual costs vary.
FAQ
Frequently Asked Questions
What is the average home price in Mercer Island, WA?
The median home value in Mercer Island is $2,328,509 as of mid-2026, according to Zillow's Home Value Index (ZHVI). That's down 2.2% year-over-year.
How much have home prices changed in Mercer Island?
Over the past year, home values in Mercer Island have decreased by 2.2%. Over five years, prices have risen approximately 18.0%.
How much do I need to earn to buy a home in Mercer Island?
To comfortably afford the median home price of $2,328,509 with a 20% down payment ($465,702) at today's rates (6.8%), you'd need a gross annual income of approximately $616,920. This assumes keeping total housing costs at or below 30% of gross income.
How does Mercer Island compare to the national average home price?
The national median home value is approximately $410,000. At $2,328,509, homes in Mercer Island are 468% above the national average.
What metro area is Mercer Island part of?
Mercer Island is part of the Seattle-Tacoma-Bellevue, WA metropolitan area. Home prices and market conditions can vary across the broader metro region.