Island Terrace Real Estate

Welcome to Island Terrace, a hidden gem nestled on the picturesque Mercer Island in King County, Washington. This enchanting neighborhood is renowned for its stunning waterfront views, lush greenery, and a tight-knit community that embraces the best of suburban living while being just a stone’s throw away from the vibrant city life of Seattle.

Island Terrace is characterized by its charming tree-lined streets and beautifully maintained homes, many of which boast breathtaking vistas of Lake Washington and the surrounding mountains. The area offers a variety of architectural styles, from cozy cottages to modern masterpieces, ensuring that there is something to suit every taste.

Residents of Island Terrace enjoy a wealth of outdoor recreational opportunities. The nearby parks, such as Luther Burbank Park and Pioneer Park, provide ample space for hiking, biking, and picnicking, while the waterfront access offers perfect spots for kayaking and paddleboarding. The community also hosts seasonal events, fostering connections among neighbors and creating a warm, inviting atmosphere.

Education is a top priority in Island Terrace, with access to some of the highest-rated schools in Washington, making it an ideal place for families. The neighborhood is also conveniently located near shopping, dining, and entertainment options, ensuring that residents have everything they need just moments away.

In Island Terrace, you’ll find a delightful blend of tranquility and convenience, making it the perfect place to call home. Discover the charm of this exceptional neighborhood and experience the idyllic lifestyle that Mercer Island has to offer!

Newest Listings in Island Terrace

$2,648,000

4 Beds ⋅ 5 Baths ⋅ 2591076 MLS ⋅ ACTIVE Status

Set on a quiet cul-de-sac, this warm and inviting home offers exceptional space, privacy and flexibility for everyday living and entertaining. With approximately 4,197 sq', the home feels both spacious and comfortable, with 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, thoughtful landscaping creates a private setting with a large deck for al fresco dining, a firepit for gathering and a flat backyard. Ideally located near south-end schools, parks, trails, athletic fields and shopping. Spacious yet welcoming, this is a home designed to be enjoyed in every season.

7803 89th Place SE, Mercer Island

Listing Broker: Coldwell Banker Bain; Katie Penny Shea; 206-755-5051; Katie.PennyShea@CBRealty.com

$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; 206-909-0622; sean.nielsen@evrealestate.com

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