As a Certified Luxury Home Marketing Specialist I keep a close eye on the high-end home sales in different markets throughout the state and throughout the U.S. The Institute for Luxury Home Marketing released it’s national market report today and defined the average sales price for a luxury home in the Twin Cities to be $718,000.
Five years ago in 2006 there 29 home sales over $700,000 in Woodbury. So far this year there have only been 5! What surprised me even more was that in 2006 there were 3 home sales over $1 million. Woodbury has only had one sale close over $1 million since January of 2009!
So where did this market go? In my opinion there are many reasons why we have seen a decline in luxury home sales. One, many buyers have decided they simply don’t need these large, lavish homes. Second, it has become harder to finance these homes. And finally, there simply aren’t as many “qualified” buyers. The economy has taken it’s toll on the “upper-middle class” and has eliminated many prospective buyers in the luxury home market.
Bottom line, there is still a market for luxury homes in Woodbury but it is simply a smaller segment of the population and sales will continue to remain sluggish in 2011. Woodbury did have 12 home sales over $700,000 in 2010 and with only 9 homes currently on the market over $700,000 this may be a great opportunity for Woodbury homeowners to sell their mansion!