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In Minneapolis, the most expensive single family homes are situated around the beautiful area known as the Chain of Lakes just southwest of downtown. Lake of the Isles and Lowry Hill, settled by some of the wealthiest in the city, are home to many of the grandest properties in all the Twin Cities. Currently the most expensive home comes in at $6.5 Million!
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They may not exist in vast numbers, but currently there are 51 condominium units available city wide priced over $1 Million. Here is the top five countdown for most expensive luxury condominiums in the Twin Cities area:
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It’s always fun to know what’s for sale, especially when we’re talking about multi-million dollar homes. In St. Paul, the most expensive homes sit on or around Summit Avenue, one of the most famous streets in the Nation for historic homes, so it should come as no surprise that the following home sits just a few blocks away.
Known as the Frederick Weyerhaeuser Mansion, it is currently listed for sale at $2.75 Million. It sits on the bluff overlooking St. Paul and has quite a large yard at 1.3 acres.
Learn more about this historic home, please visit Historic Homes of Minnesota.
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Minneapolis Luxury Homes for Sale
So you’ve decided that your next home will be in Minneapolis and now you have to find somewhere to live. Minneapolis is a pretty big city, so where do you begin? While the task might seem daunting, luxury homes in Minneapolis are quite easy to find as most of them are located in the Chain of Lakes region southwest of downtown, as seen in the listing snapshot showing current luxury homes for sale in Minneapolis.
Probably the most important decision to make is how much you want to spend on your new home as it will determine on which lake you can afford to buy and of course how close to one of the lakes you can live. The most expensive and prominent area of the Chain of Lakes is around Lake of the Isles and just northeast of this area – calledLowry Hill. Some of the premier mansions were built in this area by prominent architects and are in wonderful condition. Others are in need of repair and updating so you will want to take that into consideration as well, but no matter what condition they are in, prices for these homes can range from $2 Million- $7 Million.
Surrounding Lake Calhoun and Lake Harrietare old historic and luxury homes nestled along beautiful landscaped streets that are a little more affordable when compared to Lake of the Isles – by affordable, prices start at $800,000 and go up to $2 Million. No homes sit directly on the lakeshore, but are located starting a block away. One of the biggest draws to the area are the trails surrounding the lakes, which accommodate cyclists, joggers, walkers, and rollerbladers.
Now that you have thought about the price tag of your new Minneapolis luxury home, it’s time to drive around the area and see which lake you like the best. While all three are close together, each lake along the Chain of Lakes as its own atmosphere. Lake Calhoun has a younger vibe, with families and young entrepreneurs, not to mention the close proximity to Uptown which features shops, restaurants, and a local bar scene. Lake of the Isles has a more upscale feel with the more expensive homes, featuring neighborhoods that twist and turn along winding streets and a hilly landscape. The southern most lake, Lake Harriet, is more structured with cottage style homes and gardens, not to mention a fantastic park on the northern shore. Residents can enjoy concerts at the bandstand, ride the trolley, or enjoy swimming or boating on the lake.
Purchasing a luxury home in Minneapolis is a big decision, but one that can easily be helped by talking to a real estate agent. Many times I find that the home is what buyer’s fall in love with, not necessarily the lake it sits near. If you are ready to start shopping, you can begin your real estate search here, or give me a call – I’d love to help!
Probably one of the last things a luxury buyer thinks about when shopping for a new home is how he is going to insure it and how much is it going to cost. One of the hardest things to figure out is WHO is going to insure it. Luxury homes are not insured by every insurance company out there, and most likely, buyers will have to choose from a small pool of companies.
For instance, Minneapolis and St. Paul have an extensive inventory of historic homes with many showcasing architectural elements that would cost a fortune to reproduce today. Sorry, but Allstate just won’t do. Buyers and home owners can’t just pick any insurance company to cover these beautiful and rare items; therefore, the best way to protect your home is to choose an insurance company that has a specific policy covering old homes. Placing a value on items can be tricky, so agents can come to your home and evaluate original stain glass windows, rare woodwork, imported tile, expensive wall coverings, stone carvings…you name it, they have the expertise to value your home’s special attributes.
The initial appraisal and inventory of your home is crucial. Agents will take photos and detailed notes of everything in your home, so that should a disaster strike, your home can be reconstructed as best as possible to its original state. Most of these special insurance companies will go above and beyond the policy to make sure your home is returned to you better than before, even updating your home to current code at no additional expense to the home owner.
Some companies that you might look into for insuring your luxury home include:
Many of these companies offer increased coverage for Wine Collections, Jewelry, multiple properties, flood insurance, Kidnap and Ransom, Fine Art, etc.
Home Owners, you aren’t left out of this conversation either.
Over the years, million dollar mansions are updated and improved, but many homeowners neglect to call up their insurer and inform them of the improvements, leaving their home undervalued. When disaster strikes, homeowners could find themselves in a tough place when they don’t get the correct dollar value to replace their home and personal items. It is suggested that homeowners update their policy every year to make sure they are fully covered.
And don’t let the declining real estate market, which might state the value of your home has decreased, affect the insured value of your home. Home values have little to do with how much it will cost to rebuild and replace everything lost, so don’t get caught in that trap.
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.
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.
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.
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.
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.
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.
A few months ago I reported that financing for the upper bracket home market in Minneapolis and St. Paul was having some difficulties. Banks were being very cautious for million dollar loan requests, and the new norm for down payment was at least 30%. The word of the day was “documentation”, and banks required a ton of it. Now it looks like banks might be easing up on luxury home buyers…well, maybe just a little bit.
According to Lisa Wells of Residential Mortgage Group, the luxury real estate market is getting a little easier to finance, but still remains cautious. She says, “Loan amounts for 1 million or less are pretty decent for interest rates and the underwriting process, but buyers still need 2 years of solid income and at least a 700 credit score rating.” It appears that a down payment of 20% is also OK, but if you want a better interest rate, than banks would like to see at least 25% down.
If you require a loan amount of over $ 1 Million, things will be a little bit different. Now two appraisals are required by the bank, with the lower of the two used for the loan. The borrower must have at least 12 months of payments in the bank in a liquid reserve and ideally more, and of course a high credit score. Ms. Wells says she has found that final loan approval in the million dollar plus market, even if the buyer meets all the requirements and guidelines, “is still left to the discretion of the Underwriter, and that she should have a very, very strong borrower with 35%-40% down. The thought out there is the upper bracket market still might have some downward pressure, and therefore, anything with loan amounts of $1.5 Million or more is just hard”.
Home owners looking to sell this year should realize that there is a real obstacle with million dollar home financing, as buyers must be able to come up with the dough. Price is not always the reason for why your luxury home hasn’t sold – it could be the lack of qualified buyers. With the tougher rules in place for loan approval, sellers should require that all buyers be pre-approved. In this way, Twin Cities home owners can have a little bit of comfort that a financial capable borrower is knocking on their door.
Sailboats on Lake Minnetonka
If you are looking for the premier place to live in the Twin Cities, then look no further than Lake Minnetonka. Located just 8 miles west of Minneapolis, or 20 -30 minutes depending on traffic, residents have access to numerous highways to get them around town and enjoy the best of both worlds – quiet lake living combined with all the local big city amenities.
Buying a Lake Minnetonka home can be a little overwhelming at first due to the shear size of the lake. With over 140 miles of shoreline and numerous bays, real estate options are endless. Some buyers narrow down their choices by choosing the town on the lake they wish to live in– Wayzata, Shorewood, Deephaven, and Excelsior are the most popular Lake Minnetonka eastern towns, with Orono, Spring Park, and Tonka Bay covering the center of Lake Minnetonka, and Mound, Minnetrista, rounding out the western side.
Some buyers look to the house as the number one determining factor on where they will be living. Most of the waterfront homes cost $1 Million and more so be prepared to spend some money on your home. Home styles differ greatly around Lake Minnetonka– Cape Cod, Victorian, Cottage, Modern, Cabin, Lodge, just to name a few. Most of the lakefront homes have their own docks, but some neighborhoods have deeded access to a bay, giving home owners the same opportunity for boat storage on community docks. With boating, fishing, skiiing, and all the fun lake living has to offer, docks are a major “must have” for life on Lake Minnetonka.
Exposure could be important to finding the perfect Lake Minnetonka home. Do you like sunrises or sunsets best?Want both? Then figuring out which way your future home faces could help the home purchasing decision. Lake Minnetonka waterfront homes have fantastic views, especially in the fall when leaves change color, and if you like to garden, consider the amount of tree coverage on the lot, as that will greatly affect what types of plants you will be able to grow.
But the number one action to take when buying Lake Minnetonka waterfront property is to search the current homes available for sale. Make notes on what you like and don’t like and start narrowing down the choices. Before you know it, you will have a handful to see and soon will be on your way to owning your own piece of lake paradise. Happy shopping!
Luxury Grand Hotel
Looks like the Grand Hotel in downtown Minneapolis has sold for $33 million to Pebblebrook Hotel Trust. According to Business Wire, the new owner plans on investing $4.5 million into building renovations. The building will continue as a top luxury hotel for Minneapolis.
The building was originally opened in 1915 as the Minneapolis Athletic Club, built by Bertrand and Chamberlin. Its short stature of 12 stories can be attributed to a 1920’s height restriction.
North Oaks, located north of St. Paul, is a private community featuring many luxury homes. Like most of the luxury real estate markets in the Twin Cities, it too has taken a little of a beating this year.
According to recent statistics for 2010, closed sales for the year are up 26.9%, while listings are down almost 30%. While this might sound like welcome news, the fact of the matter is prices have suffered and thus is most likely the reason for increased home sales. Both Median and Average Sales prices are down between 12-14%. Of course, North Oaks, being a prestigious community is holding its home values better than other parts of the Twin Cities.
Average days on the market is pretty high, currently around 234 days, but that is to be expected for expensive homes. Another important number is the Housing Supply Index which falls in around 16 months. This means that it would take approximately 16 months to sell all the current inventory in North Oaks.
If you have further questions about the real estate market in North Oaks, MN, please feel free to contact me!
