Lake Minnetonka’s Real Estate Remains Strong
2022 Year in Review: Lake Minnetonka Real Estate Statistics
Inflation has cooled to a 27-month low at 3.0%, and interest rates remain in the 6% range for now.
Driving the News: Median home prices in the Lake Minnetonka real estate market have increased 3.5% over June 2022 and are currently correcting back to the historical trend line.
- The median price per square foot is up 0.7% compared to one year ago to $456.
- Days on the market (28 DOM) for Lake Minnetonka are still at historic lows. And have only increased by 86.7% over the same period last year and remain well below 2021 when homes were at 59 DOM.
- Nationally, home prices are forecasted to increase by 4.5% over the next 12 months, according to CoreLogic.
Between the lines: Homeowners with 3% mortgages have little interest in selling their homes only to lock in new rates in the 6% range.
- 80% of homeowners with a mortgage have a rate under 4%, according to CoreLogic Principal Economist Molly Boesel.
What they’re saying: Recession has been at the forefront of 2023. Now with five months left in the year, here is what prominent voices are saying:
- “For this year, given these jobs numbers, it’s hard to see a recession. Increasingly, the odds of a recession this year are fading,” – Chief Economists at Moody’s Analytics.
- “We expect another year of below-potential growth and further labor market rebalancing in 2023 to solve much but not all of the underlying inflation problem. Unlike consensus, we do not expect a recession.” – Goldman Sacks US Economic Outlook.
Why it matters: Sellers continue to receive offers at or above list price for “crème puff homes,” which are move-in ready and staged well. Although, buyers continue to gain leverage on homes that are not in peak condition, as we begin to see those types of dwellings reduce their listing prices.
- Percent of Original List Price received is 98.7% (median), down only 1.3% since last year.
- During the last six recessions, home prices, on average, increased by 0.1%. With the 2008 housing recession removed, home prices rose an average of 4.06% - Corelogic, the Balance.
What we are watching: A balanced market is forecasted with the expected cool down in the fall market, when Lake Minnetonka buyers may once again be on equal footing with sellers when negotiating offers.
- Months supply of homes is at 4.6% for the past 12 months, up 27.8% from last year.
- Closed sales are down -15.5% from last year but remain up 100% from May 2020.
Lake Minnetonka's Luxury Real Estate Market Statistics
Median Sales Price
Median Days on Market
Months Supply of Homes
Year over year. All Data from NorthstarMLS. Data deemed reliable but not guaranteed.
Published on 2023-07-07 14:48:45