With winter quickly approaching in the Twin Cities, luxury home prices remain stagnant and overall continue to fall. Popular areas such as Edina and Lake Minnetonka are holding on, but as it happens ever year around this time, buyer activity decreases with the coming cold.
Inventory for upper bracket homes across the Metro area remain high as home sellers keep properties on the market in hopes of finding that one buyer who will purchase their home. Typically luxury inventory hits rock bottom around Christmas and New Years, as sellers concentrate on other things as buyer interest declines. As spring approaches, sellers get back on the selling wagon when buyers perk up from a winter of slush. With such a vast difference in locations across town, it is obvious that a micro analysis would need to be done for each specific city to see how the luxury market fares individually.
But probably the second most important statistic for home owners, behind price, is the number of days it takes for a home to sell in today’s real estate market. Known as Days on the Market (DOM), luxury homes are seeing some good news! The average amount of time a luxury home sits on the market, that being for homes priced above $500,000, is steadily declining in the Twin Cities. Currently sitting around 140 days, the contributing factorsmost likely result from a declining of the number of homes on the market (meaning less choices for buyers) and a decrease in overall prices.
If you are interested in a free micro market analysis of your home, please contact me !