Lake Minnetonka Real Estate

The Lake Minnetonka Real Estate Monthly Market Update – June, 2008

Lake Minnetonka real estate seems like it always has be a “hot spot.” It has been come be known as one of the “highest end” part of the Twin Cities as far as real estate prices go. Being that we are right in the middle of summer, and it is a hot day to say the least, people are thinking boating and lakes! If you took a cruise on this great lake, you will see some enormous homes and palatial estates! I thought today we would take a look at a snapshot of what is happening in and around Lake Minnetonka for real estate activity.

Let’s first take a look at June of 2007 compared to the month of June in 2008. This June, there have been 220 new listings put onto the MLS, a drop of only 4.3% compared to last June. Closed sales were down quite a bit, going from 84 in June of 2007 to 65 in June of 2008. The average sales price really has taken a dip. June of 2007 saw an average sales price of $665,768, with June of 2008 coming in at $502,028. Average days on market has also seen a considerable increase, going from 158 days to 207 days this past June. The inventory levels for single family homes in and around the Lake Minnetonka area was at 759 in June of 2008, and 697 in June of 2007 (an increase of 8.9%).

Now when we take a look at January through June of 2007 compared to January of June in 2008, there has been an 8% decline in new listings put onto MLS. Closes sales unfortunately have also taken a dip, going from 319 last year to 257 this year. Thankfully, the average sales price has not seen that huge of a drop, going from $662,579 to $606,329. The percent of original list price received at the time of sale dropped from 94.1% last year to 90.3% this year. Average days on market has seen a modest increase, from 178 days to 202 days.

When we look at various “pockets” in and around the Lake Minnetonka area, there are some interest stats to share. Closed sales in Mound are down from 78 last year to 39 this year. New listings in Spring Lake park are down 48.3% this year. The average sales price in Long Lake has increased from $231,575 to $294,200, an increase of 27%. Wayzata has seen a real drop in average sales price comparing year over year, going from $734,256 to $534,496. Orono’s average sales price has gone from $1,374,117 to $1,116,177, a drop of 18.8%.

In conclusion, there is obviously still some very good buying and selling activity taking place in and around Lake Minnetonka. We Minnesotans love our lakes and boating! With the average sales price in and around Lake Minnetonka being higher, it obviously limits the “available” number of buyers out there. However, even in the tougher real estate market of the last few years, real estate in and around Lake Minnetonka continues to be in demand.