June 2018 Luxury Home Numbers for Twin Cities Minnesota.
In this video on Luxury Home Numbers in Minneapolis and surrounding areas, we see that the Luxury Home Market is still going strong. We’re asked all the time “When will we see the top of this seller’s market in the Twin Cities MN?” The funny thing is that several years back people wanted to know “When will we see the bottom of this foreclosures market?” The answer is always the same; you will know after it occurs. It is like catching a falling knife; you’re going to get cut.
From the beginning of time, people have always tried to determine when the top of markets happen and when the bottom of markets occur. Not many have been very successful at predicting it and found it is easier to sell into or buy downward. Warren Buffet knows that they will happen and to be prepared for them.
Is This a Good Time To Sell My Luxury Home in Minnesota?
This answer is a simple yes. Let us explain, the market is trending upward and has from 2013 to 2018. Whenever you’re selling something, you want to sell into the upward curve of the market. There will always be the person who will look back and said I could have got more. There is also the person who will look back and say I could have got less. It is a matter of perspective.
When selling your Luxury Home, you want to get as much for it as the market will give you at that period. When you sell into the upward climbing trend, you have insurance you received as much money as the market will allow at that time. Currently, we’re ten years out from the last recession. How much longer do you think it will be before the next one? We will give you a hint.
If you want to say that 2008 was the most significant recession (What I call economy half off sale) since 1929’s Great Depression than 1937 Recession will serve as a reminder that one is coming. To believe that the economy doesn’t go up and down would be inaccurate financial planning.
If you’re looking to retire or downsize in the next ten years, you will need to look at today’s market as a gift and use these up’s and down’s to your advantage. Sell will the market is still going up, live in your second home or rent until the market corrects than buy.
Is It a Good Time To Buy or Build a Luxury Home in Minnesota?
Buying depends on many variables that until I meet you, I wouldn’t know. Have you just sold a Luxury Home and you need to buy something using a 1031 exchange or pay capital gains. Are you going through a divorce and your spouse is taking your other home? So many variables, but there is one truth in this sellers market that can make the difference between winning and losing.
You have to know the market inside and out and what people are competing for and not take part. The reason why so many Luxury Homes in Minnesota sit on the market or fail to sell is that the sellers are not aware or don’t care about what the market trends are. There is no shortage of Luxury Homes in Minnesota. There is always an option to build further out or a tear down that is available. The only deficiency we have seen is lakefront homes but those can come available in the winter months, and that is when you have to jump.
Since there is no shortage of luxury homes (besides lakefront and certain neighborhoods) opportunity for a buyer to pick their price becomes easy. Find Luxury homes you like, check to see what has recently sold over the past ten years, offer less than market value and get accepted or move to the next one on your list.
As far as building this you needed to be aware of where others have had good intentions but failed to understand the situation. If you build your custom luxury dream home that exceeds the average luxury home value for the area, you will need to plan to hold on to it for a long enough time that the area exceeds your build cost. If there is still lots for sale in your area at any time you plan to sell, you will be trying to sell your dream home, to someone that may prefer to build their own dream home since the value of your dream home is not their dream and doesn’t keep the same value unless it is discounted.