Lake Minnetonka Real Estate Update – February 2007

The Lake Minnetonka area is known for its beautiful lakes and surrounding wildlife. This month I think I found my dream home on the lake…too bad it is listed in the $2 Million range (just a bit out of my price range). Here is a breakdown of market statistics for the month of February:

1 Million – 2 Million : Once again, the most homes are for sale in this price range. There are currently 96 active listings, up 15 homes from last month. In addition, 12 homes are in pending status and waiting to close. Only 1 home sold, and that at $1.8 Million.

2 Million – 3 Million : February only saw two more homes listed than January, currently at 26 active listings. Five homes are now pending, and there was 1 sale at $2.15 Million.

3 Million – 5 Million : This group of upper tier homes saw a little more activity. There are currently 5 active listings, 5 pending homes, but no sales.

5 Million + : No real activity this month. The same 6 homes are for sale as in January and the 2 pending sales are roll overs as well. No homes have sold.

According to the Minneapolis Area Association of Realtors, the housing supply outlook for homes $1 Million + is about 15 Months (up two months from January) for Previously owned homes and 25 months for New Construction. New construction luxury townhomes are having a hard time selling, taking on average 102 months to sell! To compare, homes below the 1 Million mark, range between 7-9 months of supply. It is also taking luxury real estate longer to sell, about 18 months (average) in fact for the Minneapolis area. Please remember that the higher priced a home is in the Luxury market, the longer it usually takes to sell! It takes a special type of buyer to purchase a high priced home.

Written by Jennifer Kirby

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