Back in the real estate boom of 2005, million-dollar-plus homes accounted for 453 sales in the St. Paul and Minneapolis real estate market. This year, that number had climbed to 491 by the end of October. In November, 35 additional upper bracket homes were sold, a number that is up nearly 21% from the same time last year, according to data from the Minneapolis Association of Realtors. We can take this as a good sign that confidence has been restored across all price ranges of our market. Activity in this upper bracket came to a screeching halt in the downturn, and million-dollar inventory exceeded 38 months supply back in 2009. Now, that supply is a far healthier 13 months.
Listings: View available Minneapolis' Homes on Mansion Global What's a major factor fueling this change? Well, according to the Bureau of Labor Statistics, the Twin Cities shares the No. 1 spot for the lowest unemployment rate for large metropolitan markets across the country (the other top city was Salt Lake City). Large local employers like United Health Group, Target, Best Buy, 3M and Medtronic attract talent from all over the world and have been playing a key role in our housing market's long-term stability. "The unemployment numbers and wage growth we're seeing have a very positive effect on numerous factors," says David Arbit, director of research and economics at the Minneapolis Area Association of Realtors, "and bodes well for new household formations, strong housing demand, move-up activity, inbound migration, our tax base, consumers being able to save for a down payment and other facets as well." Across the board, 2015 has been a positive year for the Minneapolis/St. Paul real estate market — and we have reason to think December will finish strong too, despite the potential for an interest-rate adjustment. Our backlog of anxious buyers still on the hunt for their next home should help minimize any potential negative effects, so we're expecting to roll right through the holidays and into 2016.