Lake Minnetonka Luxury Real Estate Update, October 2008
Today I thought we could take a look at what real estate is doing out on Lake Minnetonka. Not that it is any big surprise, but things have slowed down a little in 2008 on the famous lake. High end buyers don’t seem to be coming out of the woodwork anymore, either because they already bought a home in the last five years, or can no longer afford the luxury lifestyle.
Anyway, the news isn’t all that great. About the only positive number coming out of the area is that closed sales for the month of September were up 9%. The not-so-good “positive” numbers show that the number of days a home is on the market has gone up to 181, almost 9% higher from this time in 2007.
The good news to buyers is that the average price of home on Lake Minnetonka has gone down 10.3%. It helps that many million dollar homes are now no longer million dollar homes, but instead priced in the $800,000 – $999,000 range. Most interesting is the fact that the list price, when compared to sale price, shows a 10% difference. That tells me sellers are pricing their homes too high from the get go. Maybe if sellers started off more realistic, their homes would sell quicker.