The average sale price is $515,000 up 6.2 %
The average price as measured by finished SQ FT is up to $170, up 8.1 %
BUYERS: I believe are tired of waiting. They believe, as do I , that they have seen the affordability moment already and aren't going to want to miss the boat entirely as they watch prices remain stable or improve (with demand) and interest rates tick up. With every tick ....their purchasing power goes down, so they are going to finally take their lumps with the sale of their current home and get to where they want to be. Minnetonka is a great stable community with great schools and amenities. Buyers are thinking long term and they will be the key to getting things moving. A "hot" market I am not sure we will see any time soon , and that is ok. We are seeing multiple offers and action on houses though that are : A) updated and in good condition and B) Priced appropriately for the location/lot. It is January in Minnesota....aren't we all dreaming of a little bit of heat? email@example.com
I think Minnetonka has fared better than many other areas but I don't see a housing rebound but rather just a firming up of the market. I believe REAL prices will oscillate +/- 5% from where they are today for 1-2 more years. Affordabilty (mortgage payment) has probably peaked but prices may dip a little more when rates start to increase since that will have an impact on affordability.
I saw this article you reference and got a good chuckle out of it. I wouldn't call Minnetonka a rebounding housing market. For an agent to say, as the article states, that confidence in the ecomony is back and it is going to be a great year, is a little naive in my opinion. I just don't see or hear buyers saying this, and in fact, most feel the opposite. While it's nice that an agent might "feel" that a market it doing well, the stats to me just don't show that rebound. I for one would not say that the local market has bottomed out. Let's see what rising inflation does, as well as the expected increase in foreclosures this year...then we can talk about the state of the local market. So to answer your question, No, I don't believe the Minnetonka market is "heating up". Sorry, I don't sugar coat things, just tell it like it is.
Based on those numbers, I would not say that the Minnetonka market is heating upl.
I live in Minnetonka so I watch the market even closer than other areas. It is a stable, sought-after area of the Twin Cities. There were less foreclosures and short sales in general than other areas of the Twin Cities so that has kept the home values stable and strong. If you are looking to purchase a home, Minnetonka is great city to consider. There are homes that are fully updated at a great value and others that are estate sales that would give you great opportunity to build equity. Schools are great and its a good place to raise a family. If I can help you with your search in anyway, please let me know. I would love to be available to you!
Brad Fox | Broker | Realtor
Dwell Realty Partners