It’s been a few years since the national market correction began, and now our local luxury market is following suit. In Minnesota and western Wisconsin, we are seeing great conditions for luxury homebuyers like you.
Luxury home inventory
According to the Minneapolis Area Association of REALTORS® (MAAR), closed properties above $500,000 in the 13-county metro area have increased 10 percent when compared over the previous year.
One reason for this spike is the increase in local luxury home inventory. In September 2014, MAAR reported a 19.2 percent year-over-year increase in new listings over $500,000.
Of course, luxury buyers aren’t only tied to existing homes. New construction is making a comeback across Minnesota and western Wisconsin, and this is especially true for homes in the upper bracket. MAAR is reporting a 30 percent increase in new construction homes priced above $500,000.
“Luxury buyer demand is on the rise, so it’s a great sign that inventory is striving to keep up with it,” said Edina Realty’s Director of Exceptional Properties Nicole Suchy. “Minnesota and western Wisconsin luxury buyers have the highest inventory to choose from since December 2011. With more options of new and existing homes to choose from, buyers may see less competition — even in high demand neighborhoods.”
Price per square foot rising but still low
Price per square foot is important for any listing, but it’s especially significant in luxury homes. As home prices dipped during the market correction, Northstar MLS reported that the median price per square foot for local luxury homes dipped to $166 in March 2012. The current median price in a local luxury home is $174 per square foot.
“Before the market correction began, luxury home prices reached as high as $198 per square foot in our 13-county metro area. The current prices are much more realistic,” said Suchy. “While today’s luxury buyers may have missed the best prices by a few years, the increase in inventory will allow them to pick the right home, in the right price range and neighborhood.”
Ready to begin your search?
If you’re ready to begin looking at luxury homes for sale in Minnesota or western Wisconsin, you can start your search here or reach out to be connected with an agent specializing in your desired area.
Not sure what you’re looking for?
Get a great start by checking out these amazing luxury homes for sale in our local market.
This Kenwood stunner offers a short walk to Lake of the Isles, and a private garden oasis. Enjoy five beds and five baths, and nearly 5,000 square feet, for a price of $1,245,000.
This former model home in Hugo is great for entertaining, and offers a great location for those commuting either to the St. Paul area, or across the river into Wisconsin. A recent price reduction on this five bed, five bath, 5,000 square foot masterpiece means you can call it home for just $627,722.
This newly built Rochester home is perfect for those living in the “Med City.” Set atop a wooded bluff, you’ll enjoy privacy and wonderful views of the Zumbro River and downtown Rochester. This home offers five beds and five baths, and nearly 6,000 square feet for the price of $1,450,000.