Warmer than normal spring temperatures contributed to the April 5th ice out date on Lake Minnetonka; 19 days earlier than last year! The warmer temps also brought a total of 30 real buyers to the Lake Minnetonka luxury home market during the 1st quarter of 2015, a 7% increase over the 1st quarter of last year. The closed transactions had an average of 315 days on market, a year over year increase of 128%. The increase was supported by the additional of homes on the market over last year's 1st quarter. As we mentioned in the 2014 year-end review, the $800k to $900K price range remains extremely active fueled by the continued lower interest rates. However, for the first quarter of 2015 the $900K to $1M price range set the mark as the highest percent of original list price received at 98.3%. The local luxury market as a whole stands at 90% of original list price received for 1st quarter. The absorption rates increase by 50% from the start of the year to 22.27 months with the $800K to $900K range as the standout; jumping by 230% to 29.4 months. The large increase is due to the added inventory of homes as sellers are entering the marketplace as local prices continue to increase. In summary, the stats provide us with a positive start to 2015 and with consumer confidence at levels we have not seen since 2007 this trend should continue into the 2nd quarter as the lake heats up.
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