Island Terrace Real Estate

Welcome to Island Terrace, a picturesque neighborhood nestled in the heart of Mercer Island, Washington. Renowned for its stunning waterfront views and serene atmosphere, Island Terrace offers an idyllic blend of suburban charm and natural beauty, making it one of the most sought-after communities in King County.

As you stroll through the tree-lined streets, you'll be captivated by the well-maintained homes that reflect a variety of architectural styles, from classic mid-century designs to contemporary masterpieces. The sense of community is palpable here, with friendly neighbors and local gatherings that foster a warm, inviting environment.

One of the standout features of Island Terrace is its proximity to the breathtaking shores of Lake Washington. Residents enjoy easy access to a variety of outdoor activities, including kayaking, paddleboarding, and fishing. The nearby parks, such as Luther Burbank Park, provide ample opportunities for picnicking, hiking, and enjoying the stunning views of the Seattle skyline.

Families will appreciate the highly-rated Mercer Island School District, known for its commitment to academic excellence and extracurricular opportunities. Additionally, Island Terrace is conveniently located just a short drive from downtown Seattle, offering residents the perfect balance of suburban tranquility and urban accessibility.

With its combination of natural beauty, community spirit, and convenient location, Island Terrace is more than just a neighborhood; it’s a place where memories are made and cherished. Discover the charm of Island Terrace and envision the lifestyle that awaits you in this remarkable corner of Mercer Island!

Newest Listings in Island Terrace

$2,795,000

4 Beds ⋅ 5 Baths ⋅ 2582245 MLS ⋅ ACTIVE Status

Move right in and enjoy this warm and welcoming South Mercer Island home, tucked on a quiet cul-de-sac close to schools, parks, trails, athletic fields and south-end shopping. Offering approx. 4,197 sq. ft. with 4 bedrooms and 5 baths, the home feels both spacious and intimate, with wonderful privacy and abundant natural light throughout. A light-filled entry sets the tone with an open, airy feel, warm hardwood floors and an inviting sitting area. At the heart of the home, the generous kitchen is designed for those who love to cook, gather and entertain, with an adjoining casual dining area. French doors open to a bright office with a wall of built-in workspaces—ideal for work, homework or hobbies. The dining room features a built-in buffet and connects easily to the fireside living room. Upstairs, the primary suite is joined by three additional bedrooms, including one with its own en suite bath. The lower level offers a recreation room with gas fireplace and surround sound, a flexible bonus room ideal as an additional office, studio or possible 5th BR, plus a utility room with 3/4 bath. Brand new gas furnace, A/C and water heater (Aug. ’26). Two-car garage with generator and abundant storage. Outside, enjoy thoughtful landscaping, a large deck for al fresco dining, firepit and flat backyard for play. Comfortable for everyday life, yet equally suited for gatherings large and small. Welcome home!

7803 89th Place SE, Mercer Island

Listing Broker: Coldwell Banker Bain; Katie Penny Shea; ;

$3,875,000

5 Beds ⋅ 4 Baths ⋅ 2544375 MLS ⋅ ACTIVE Status

Perched above Lake Washington in one of the Island’s most peaceful neighborhoods, this extensively remodeled luxury home captures sweeping views of Lake Washington, Mount Rainier, and the Cascade Mountains. Thoughtfully reimagined with exceptional craftsmanship, custom finishes, and state-of-the-art systems, every detail has been curated for elevated Northwest living including a sprawling deck wraps around the home, creating seamless indoor-outdoor living and offering the perfect setting to entertain, relax, and take in the spectacular panoramic views year-round. The elevated primary retreat serves as a private sanctuary, featuring its own view deck with hot tub and a spa-inspired bath complete with custom cabinetry, a freestanding soaking tub, oversized walk-in shower, and breathtaking vistas. At the heart of the home, the chef’s kitchen is appointed with premium Miele and Wolf appliances and refined finishes designed for both everyday living and effortless entertaining. A main-floor office with an ensuite bath and private deck provides flexibility as a guest suite or multigenerational living space. The lower level offers generous living spaces including a rec room, three additional beds, and fully remodeled bath featuring heated floors, a designer tile shower, and dual vanities. Located within the sought-after Mercer Island School District and tucked away on a quiet street, this exceptional home offers a rare combination of luxury, privacy, and commanding Northwest views.

7712 89th Place SE, Mercer Island

Listing Broker: Engel & Voelkers Mercer Island; Sean Nielsen; ;

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