Twin Cities Area Has New Hot Real Estate Segment: Million-Dollar Homes
Pandemic generates more upper-bracket sales as wealthier buyers hit the market.
There’s a new, particularly hot segment in the Twin Cities’ housing market: million-dollar homes.
Minneapolis Area Realtors recently reported that in 2020 sales of homes over $1 million exceeded 2019 sales in that segment by more than 20% – an increase that beat out nearly every other price range in the market.
The trend appears to be continuing in 2021 with sales in this segment up 75% in January versus the same period in 2020.
What’s Fueling This Trend?
Record low mortgage rates, rising home equity and a hot stock market have enabled buyers to enter this segment or trade up to more expensive homes.
While the Twin Cities have always had a good selection of houses across segments, the pandemic has really caused inventory of seven-figure homes in some suburbs to drop. Typically the Twin Cities has an inventory that lasts approximately 8 months in this price range, but by the end of 2020 some suburbs had just one month of listings for sale.