Anatomy of a Real Estate Sale Over One Million Dollars
In the areas served by our area Multiple Listing Service, sales over a million dollars are relatively few, particularly when compared to markets like San Diego, Manhattan (NYC), Boston or San Francisco.
Our closed sale on Madeline Island last week inspired me to do a search of recent sales in excess of $1 Million. That residential listing appeared on RMLS (NorthstarMLS) in Minnesota and Western Wisconsin.
Listings on RMLS generally include the greater Minneapolis and Saint Paul metropolitan area, but also include some listings in outstate Minnesota and in Western Wisconsin, across the border to the east.
Here are a few statistics on recently closed sales in the "upper brackets" from RMLS of Minnesota and Western Wisconsin:
- Since January 1 of this year, twenty-six homes have sold in our MLS (and cooperating areas) for $1.4 Million or more.
- There were twenty-two agents/companies involved in listing and marketing those twenty-six homes.
- Our MLS has over 13,000 member real estate professionals. Twenty-two listing agents who successfully closed a sale in this segment of the real estate market represents .00169 of all the real estate agents participating in RMLS.
In other words, about 1.7 per thousand agents in our MLS listed and marketed a home in the "$1.4M-plus" price range which actually sold during the first 107 days of 2012.
More area statistics for this price range:
Ninety-four unsold listings on NorthstarMLS which closed at over $1.4 Million either expired or were canceled since January 1 of this year. Nearly four times as many homes at or above that price failed to sell during the listing period, compared to the number that sold.
Most of the closed sales reported to NorthstarMLS at that price or above were located in the Minneapolis and Saint Paul, Minnesota communities of Lake Minnetonka, Edina, Kenwood - Lowry Hill (Calhoun Isles Lake Harriet) and Medina. Sales above one million dollars in those communities are relatively more commonplace than elsewhere in the Twin Cities metro area.
One of these reported upper-bracket sales was on Madeline Island. That property was listed by our LaPointe, Wisconsin real estate brokerage, Madeline Island Realty.
By comparison, take a look at the real estate market in our MLS and compare it to the market in parts of southern California, like LaJolla or Laguna Beach.
For example, the average list price of a home in LaJolla is currently over seven times that in the Twin Cities area. The average list price in Laguna Beach at this time is nearly twelve times the average list price in Minneapolis and Saint Paul.