2015 1st Quarter Summary for the Lake Minnetonka Luxury Home Market

2015 1st Quarter Summary for Lake Minnetonka's Luxury Home MarketWarmer 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.    

If you would like additional information on the local market or a complimentary market analysis based on your real estate needs, please contact us.    

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