Lake Harriet Minneapolis MN

What’s Going on in Lake Minnetonka?

Real Estate Update for Lake Minnetonka

Today I thought it would be good to give a market update for those who live around Lake Minnetonka to show what has been happening over the last year. Below are some details and graphs to help explain the current market, with colors for graphs indicating year of data.

Median Sales Price

For the last three years, Median Sales data for Lake Minnetonka has stayed relatively the same. While 2009 saw a 12.6 % decrease from 2008, the market has rebounded slightly this past year with median sales prices increasing…good news for luxury homes around the lake. Some of the hardest hit areas in sale price over the last year have been Excelsior and Wayzata, with Spring Park having the largest increase.

Lake Minnetonka Median Sales Price for Luxury Homes
Lake Minnetonka Median Sales Price


Housing Supply and Days on the Market

The housing supply, or current inventory of homes for sale in Lake Minnetonka, is considered healthy if it is around 5-6 months. As you can see, for the last few years, expensive homes in the area have been no where near that number. Currently at 23.9 months, it will take almost a full year to sell all of the current homes on the real estate market. This number takes into account all homes surrounding lake Minnetonka so each individual town will have a different number. For instance, Excelsior has seen the largest increase in housing supply, with Greenwood and Tonka Bay coming in at a close second, but on the other end, towns like Minnetonka Beach, Wayzata, and Orono have seen a decrease in housing supply.

Number of Months to Sell Lake Minnetonka Inventory
Lake Minnetonka Housing Supply
Amount of Days on the Market Lake Minnetonka Homes Sell
Lake Minnetonka Days on the Market

With home sellers, one of the most important real estate statistics they want to know is how long it will take to sell their home. For Lake Minnetonka homes, it’s going to take awhile. Over the last year, it has taken an average of 244 days for a home to sell (Agents call this “Days on the Market” or “DOM”).  The price of homes in an area will greatly effect the DOM, so naturally the more expensive the home, the longer it will take to sell due to the fewer number of buyers able to purchase a luxury home. For Lake Minnetonka, the towns with homes taking the longest to sell are Tonka Bay, Deephaven, and Minnetrista.


 New Listings Vs. Closed Sales

The amount of New Listings that have hit the market over the last year for upper tier homes around Lake Minnetonka  have decreased 20% from the amount in 2009. So far this year, Mound and Orono hold the records for most homes to come onto the market, but for the most part, sellers are deciding to wait out the market before selling. The decrease in available homes means that buyers have less to choose from, but in the same instance, the number of homes that have sold in the last year has increased. So I guess having less homes makes it easier for buyers to make a choice, but most likely, with the percent of the original list price received by home sellers declining in many Lake Minnetonka towns, buyers are just finding homes more affordable than in 2008.

Lake Minnetonka New Home Listings March 2010 to February 2011
Lake Minnetonka New Listings

 Closed Sales over the last year for Lake Minnetonka luxury homes has increased 11% for those near or above a million dollars, with homes $500,000+ having over 22% more closed sales.

Closed Sales March 2010 to February 2011
Lake Minnetonka Closed Sales

2 comments… Join the conversation and add your own!

Steve Levitan April 6, 2011 at 10:27 am

I have a real estate firm in Naples Florida. A lot of people from Minnesota here all winter. The numbers that you have amaze me in that they trend the same way here in Naples. The high end property like I sell has an average of about 242 days on the MLS. Interesting to see what is happening up north. Good luck to you.

Naples Fl Realtor June 14, 2011 at 1:52 pm

Our Team, The Curkovic Team, does real estate in Naples Fl. During winter season, I tend to see a higher demand in the real estate market, simply because people run from the cold weather up north. I enjoyed reading and viewing your statistics up north! Good luck in the future, Your Naples Fl Realtor!

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