Upper tier Historic Home Market Update

Statistics on Lake of the Isles Historic Homes 2006

This weeks featured Luxury Community is the Lake of the Isles/Lake Calhoun area in Minneapolis. Similar to last weeks snapshot of St. Paul Historic Homes, this one will also only consider those homes listed at $1 Million and above, built before 1940, and single family residential.
In 2006, 60 homes were listed, ranging in price from $1 Million to $5 Million. They break down into the following categories:
  • Currently 18 active listings
  • 17 Homes were sold in 2006
  • 11 Listings were cancelled and not re-listed for sale
  • 14 Listings Expired and were not re-listed

The average adjusted days on the market were:

  • Current active listings = $1-2 Million, 160 DOM $2-5 Million, 292 DOM
  • Homes that sold = 11 Homes sold with in 23 days of list date, whereas 6 took on average 238 days to sell
  • all Cancelled/Expired listings =

To sum up the Historic Home Luxury market in the Lake of the Isles area, roughly 42% of the listings were taken off the market because they were not selling. Only 28% sold and the remaining 30% are still active. Of those remaining on the market, it is interesting to note that homes priced between $1-2 Million are selling more quickly than those price at $2 Million and up. But it is still taking a while to sell, anywhere from 6-10 months.

I would have to say that the short selling time of 11 homes was probably due to them being priced correctly from the beginning. If a home is priced too high when it hits the market, it quickly becomes forgotten by buyers. The most important statistic to report is that of listing price vs selling price. Of the 17 homes sold, the final selling price was on average 7% lower than the original list price. Obviously, home owners would like to sell for full price, but affluent home owners have the luxury of being more flexible with the bottom line. In this case, sellers in 2006 were able to sell their homes quickly, and buyers walked away with a home they loved and with a feeling of accomplishment of negotiating the purchase price!

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