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Market Intelligence · WA / Mercer Island

Mercer Island, WA 98040 Housing Market

The typical home value in Mercer Island, WA 98040 is $2,212,672, down 0.8% over the past year as of September 2026. The median list price is $2,746,500, and homes are spending a median of 44 days on the market.

Updated September 2026Median value$2213K

The median home value in Mercer Island, WA 98040 is $2.21M as of September 2026, down 0.8% year over year, according to Zillow ZHVI. For a read on your own home, start with a free consultation: a licensed local pro will walk you through your numbers and your options, with no obligation.

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Typical 98040 range

$2.04M to $2.39M

This is an automated estimate, not an appraisal. Actual value is determined by current market conditions and professional evaluation. It is provided for informational purposes only and is not an offer to buy or a promise of value.

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12-month value trend

-0.8% over 12 months

Typical home value in 98040 over the last 12 months: $2.23M in Sep 2025 to $2.21M in Sep 2026 (-0.8%).

Sep 2025$2.23M

Sep 2026$2.21M

The numbers

What is the 98040 housing market like?

Typical home value

$2.21M

Down0.8%YoY

Median list price

$2.75M

Up0.8%MoM

Days on market

44

Up2.3%MoM

Homes for sale

85

Down2.3%MoM

Price cuts

17.2%

Up4.2%MoM

New listings

24

Down14.3%MoM

Sources · Zillow ZHVI (September 2026) / Realtor.com (September 2026) / FRED (October 2026)

The outlook

98040 housing market forecast 2027

-0.3%

Zillow forecast, 12 months to September 2027

Zillow forecasts typical home values in 98040 to stay roughly flat by September 2027 (down 0.3%).

Over the 12 months through September 2026, typical home values in 98040 fell 0.8%, per the Zillow Home Value Index.

Will home prices drop in 98040?

Zillow's forecast does not point to a meaningful drop: it expects typical home values in 98040 to stay roughly flat by September 2027 (down 0.3%), after a 0.8% decline over the past 12 months. Forecasts are not guarantees: mortgage rates, inventory, and the wider economy can move values either way.

Forecast: Zillow Home Value Forecast, published October 2026. A forecast, not a guarantee.

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The comparison

How do 98040 home prices compare?

  • 98040$2,212,672
  • Mercer Island$2,212,672
  • Washington$496,668
  • United States$285,347

Median Zillow home value (ZHVI), as of September 2026. Comparison levels are medians across every ZIP code with Zillow data (Mercer Island: 1 ZIP; Washington: 485 ZIPs; United States: 26,262 ZIPs).

Context

As of September 2026, there are 85 homes for sale in 98040, with 24 new listings coming on the market. The median list price is $2,746,500, while the typical home value sits at $2,212,672, down 0.8% over the past year. Homes are taking a median of 44 days to sell, and 17.2% of listings have had a price cut. That combination suggests buyers on Mercer Island have room to negotiate and are pushing back on asking prices. For a seller, pricing realistically from the start matters more than usual right now.

Monthly payment

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20% · $442,534

Common questions

What people ask us.

How much is a home in 98040 worth?

The typical home value in 98040 is $2,212,672, down 0.8% over the past year as of September 2026.

How long does it take to sell a home in 98040?

Homes in 98040 spend a median of 44 days on the market as of September 2026.

Are sellers cutting prices in 98040?

Yes. As of September 2026, 17.2% of listings in 98040 have had a price cut, out of 85 homes for sale.

Discover

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