A nearly new waterfront home along West Mercer Way is on the market for $28 million.

The 14,000-square-foot stone and stucco home, on 1.2 acres and 120 feet of waterfront, has eight bedrooms and nine bathrooms, and was designed by Vassos Demetriou. It was completed in 2007.

The home is the second most expensive property presently for sale on the Island. The highest-priced house is a not-yet-complete waterfront estate on Boulevard Place that is said to be the largest residence on Mercer Island. It is going for $32 million. A home initially listed for $40 million in 2007 that has been reduced to $25 million is the third highest-priced property.

Earlier this year, a 1932 waterfront estate adjacent to Proctor Landing in the East Seattle neighborhood sold for well under its original asking price. The 15,000-plus-square-foot, 1.3-acre waterfront estate includes an indoor swimming pool, game room, sport court and home theater with a carriage house, a guest house and a dock with a boat lift. After nearly two years on the market, it sold for $15 million. The original asking price of the brick Tudor-style home was $39.5 million in February 2007.

Two years ago, there were just over 170 residential properties on the Mercer Island market. Over 30 homes were priced between $2.5 and $9.5 million, and five homes were for sale at $14 million or more. Today, there are 18 homes between $3 million and $10 million. Just three homes are for sale over $10 million.