In 2009-2012, the million dollar home market tanked. Jumbo mortgages shot up, underwriting tightened, prices plummeted, demand declined, and foreclosures increased. As the general economy, stock market, and corporate earnings recovered so, too, has this important segment of the housing market (and I’ve talked about this many times on my real estate video blog). To put this in perspective, in 2009, there were 239 $1M+ home sales; in 2010 280 sales; and in 2014, nearly 400 sales — a 40% increase in just 4 short years!
Return to Normalcy
With mortgage financing at historical lows in the 4% range, and demand returning with a vengeance, luxury home sales are back on track, both in the Twin Cities, and in Edina, which in 2014 had 16% of all luxury home sales, the largest share in the state. This year to date, there have been 117 luxury home sales, with an average price of about $1,550,000, on par with last year’s statistics. In Edina, we’re at 12 sales for the year, with an average sales price of $1,472,000, versus last year’s 17 sales and $1,582,000 average sales price, showing continued stability in the market. I expect the balance of the year will continue to perform on par with last year, with some modest growth. And we want the real estate asset class to be long-term, stable, and predictable!
If you’d like to know how your own local luxury home market is doing, please contact me and I can run an analysis for you. We all want to know what our homes are worth today!