So far 2011 has been a good year for condo sales in the Twin Cities metro area, especially in the $1 million-plus price range. The 23 condos and townhouses that have sold for over one million in 2011 equate to a 109% increase compared to last year. One example is the newly acquired 18,000 square foot, two story condo bought by Aveda Corp. founder Horst Rechelbacher. Paying just under $7 million for the unfinished space, Rechalebacher felt it was a deal he couldn’t pass up. Barry Berg, the Coldwell Banker Burnet agent who represented Rechelbacher, said that “there are excellent opportunities in the market and for those buyers who have a longer-term perspective, these purchases represent “once-in-a-lifetime” opportunities”.
A purchase of this kind can impact the market of other condos that do not share the same hefty price tag. Strong sales in the higher price ranges definitely have a positive impact on the overall market. If nothing more, it is clearly a sign of confidence. Although real estate can vary greatly by region, these numbers can only be seen as a positive sign for the Duluth market. There are currently 134 condo/townhouses listed for sale in the Duluth area with the highest priced at $1.2 million. Average and median prices for condo units in the Twin Port areas are $284,898 and $266,950 respectively.
The growing interest in the condo market, and this $7 Million dollar sale, may represent the resurgence of the Minnesota Condominium real estate market.