Same Prices as a Decade Ago (or Longer)
Even with the recent carnage, the stock market has more than doubled from its post-2008 Crash lows.
Upper bracket housing?
Not so much.
At least in many choice Twin Cities neighborhoods, luxury homes can be had for the same prices they fetched a decade ago (or even further back).
In fact, when you take into account the difference in jumbo mortgage rates then (stratospheric, if available at all) and now (cheaper than even so-called “conforming” rates), such homes are an even better deal.
Meanwhile, the cost of teardowns in high-demand Edina neighborhoods like South Harriet Park and Morningside has soared.
Lots that might have sold for $300k – $400k a decade ago are now fetching $600k or more — driving up the cost of new construction in such locations well over $1.5M.
$1.1M + $300k = $1.2M (Huh?!?)
All of which makes nicely updated, existing homes in those same areas a compelling value right now.
Exhibit A: 5211 Larada Lane in Edina’s gorgeous Parkwood Knolls neighborhood.
Built in 1988, the 4 BR/4 Bath English Tudor has an open floor plan, over 4,800 finished square feet, terrific curb appeal, and sits on a pretty .36 acre lot.
Since purchasing the home for $1.1M in 2007, the owner spent over $300k on a clutch of upgrades, including a brand new Kitchen (photo, above); a new first-floor Mud Room and Laundry; and a totally re-done lower level including a home theatre.
Edina Realty agent Sheila Cronin Bornfleth just listed the home this week, after hosting last week’s Exceptional Properties meeting there (where I saw it).
Price is $1.199M.
If you’re doing the math, that’s $200k less than the owner has into it.
