Each year, there are nearly 500 luxury (million plus) single-family home sales in the state of Minnesota, with most of those sales occurring in Hennepin County. When you are shopping for a luxury home, you should be aware of where the strongest markets are located, and choose accordingly. Good times don’t always last (see our Twin Cities Luxury Home Market Update for a historical look), and you want to be prepared by buying a home in an area with strong, consistent demand for luxury properties. Here is the list of the top 5 luxury home markets in Minnesota:
#1: Edina, Minnesota
Along with its world-renowned schools, hockey programs, shopping centers, and medical facilities, Edina has more top tier luxury home sales than any other Minnesota market, making it the official Luxury Home Capital of Minnesota. Edina has 103 million dollar plus single family homes for sale, nearly double every other top luxury market. In 2014, in Edina’s 4×4 mile borders, Edina led the state with 68 luxury home sales, a whopping 33% more sales than its closest competitor, Minneapolis (a much larger geographic area). Based on the 2014 sales rate, there is an 18 months supply of luxury home inventory in Edina, one of the fastest absorption rates for upper bracket homes in the Twin Cities.
Edina Luxury Homes for Sale#2: Minneapolis, Minnesota
Minneapolis has the highest rated tourist attraction in the state, the Chain of Lakes, including Lake Calhoun, Lake Harriet, Lake of the Isles, and Cedar Lake. It’s no surprise that the top luxury homes for sale in the state would be found in and around the Minneapolis lakes area. Minneapolis has 59 million dollar plus single family homes for sale. If we added in some of the downtown luxury condos, this figure would be even higher (but still not as high as Edina). In 2014, Minneapolis recorded 51 luxury home sales, making it the second largest market in the state. That sales rate means Minneapolis now has the strongest absorption rate of luxury homes in Minnesota, with a mere 14 months supply of luxury homes for sale.
Minneapolis Luxury Homes for Sale#3: Orono, Minnesota
In addition to a coveted school district and bucolic subdivisions, Orono has a multitude of Lake Minnetonka lakeshore property and homes for sale. In fact, some of the most expensive homes and estates in Minnesota are located on Orono lakeshore. It’s no surprise, therefore, that Orono would come up as a top luxury home market. This year, there are 60 Orono luxury homes for sale, more than even in Minneapolis! In 2014, there were 36 luxury home sales. That means Orono’s absorption rate is nearly on par with Edina at 20 months supply of inventory, another fundamentally strong market for million dollar homes.
#4 Eden Prairie, Minnesota
Eden Prairie has a fabulous shopping mall, a great school district, and numerous high-quality new construction subdivisions. It is a community that attracts many local executives. It also is the fourth largest market for luxury homes in the state, with 43 luxury homes for sale. In 2014, there were 17 million-plus home sales in Eden Prairie, giving it a current absorption rate of 30 months of inventory. That slower pace makes Eden Prairie a more difficult place to sell a luxury home, at least given today’s demand and supply relationship. Patience and persistence is, of course, key.
Eden Prairie Luxury Homes for Sale#5: Minnetonka, Minnesota
As with Orono, the city of Minnetonka counts itself among the 14 Lake Minnetonka lakeshore communities, and for that alone could find itself in the top 5. But Minnetonka also has a top-performing school district, a desirable community center, and one of the best preserved environments in the Twin Cities, including a wealth of wetlands, forests, and prairies. For all those reasons, Minnetonka is the fifth largest luxury home market in the state, with 33 luxury homes for sale, and 17 luxury homes sold in 2014. That gives Minnetonka a 23 months supply of inventory of luxury homes.
Minnetonka Luxury Homes for SaleOnce you’ve gone through these top five markets, most of the remaining top luxury home markets are located in or around Lake Minnetonka, which (in addition to Orono and Minnetonka above) include the cities of Deephaven, Excelsior, Greenwood, Minnetonka Beach, Minnetrista, Mound, Shorewood, Spring Park, Tonka Bay, Victoria, Wayzata, and Woodland. Be sure to take a look at these Lake Minnetonka Luxury Homes for Sale as well!
