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Minnesota's high-end real estate scene competitive but varied due to state of economy

March 26, 2019 07:33 PM

Many first-time homebuyers find the market to be so competitive that they have to put in multiple offers to get a house within their price range. 

However, the Twin Cities area is also seeing growth on the opposite end of the market. The number of houses sold for $2 million or more has increased in recent years.

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Local realtor Steve Shmitz with Coldwell Banker Burnet is excited to sell a Bloomington house on Auto Club Road, overlooking the Minnesota River. 


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"I love the drama of this space," he said.

The house is priced at $2.5 million. It includes multiple pools, a movie theater, observation room and 3.5 acres of land.

"(The buyer) could be a bunch of people, (such as) a physician, an athlete, a local executive, like my seller here," Shmitz said. "I think there is a variety of folks who could be interested in properties like this."

The house is largely out of most of the public's price range, as the median home price in the Twin Cities area is $265,000, according to the Minneapolis Area Association of Realtors. But in 2018, 113 homes sold for over $2 million in the metro and surrounding area. In 2017, 124 homes in that price range sold.

A look back over the past few years reveals the state of the economy has impacted how many people are buying or selling high-end real estate.

"I do think the consumer confidence is there. The economy seems to be rolling and our Minnesota economy is strong," Shmitz said.

These high-end homes are selling in Edina around the Minneapolis lakes, or Lake Minnetonka, among other areas.

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Credits

Leah McLean

Copyright 2019 - KSTP-TV, LLC A Hubbard Broadcasting Company

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