POTW | Lynnhurst Nbhd

By David Arbit on Monday, September 21st, 2015

Located along the southeastern shore of Lake Harriet, Lynnhurst is a mostly residential neighborhood in the Southwest Community of Minneapolis. Most homes in the area were built prior to the 1940s. With easy access to the Chain of Lakes, regional transportation networks and employment opportunities, it’s no surprise this neighborhood is so popular for residents and visitors alike.

Lynnhurst properties tend to fetch $210 per square foot compared to $190 in the Southwest Minneapolis community. That represents a roughly 10.5 percent premium on Lynnhurst homes compared to the surrounding community. For the sake of comparison, Minneapolis homes tend to sell for $157 per foot while Twin Cities homes sell for $115 per foot.

Homes with more than 2,500 total finished square feet make up the largest slice of the unit sales pie. That was not the case in 2005, 2006 and 2007, where the 1,500 to 2,500 segments made up the lion’s share of sales activity.

The Lynnhurst neighborhood currently has 3.3 months of supply, which indicates it’s a seller’s market. Back in late-2010, the area had 8.5 months of supply, marking a buyer’s market. Things have loosened up a bit since mid-2013, when the neighborhood had just 2.1 months of supply. Lynnhurst absorption rates now mirror those in the broader Southwest Minneapolis community.

Even though the market is fairly tight and sellers have a fair amount of leverage in terms of setting prices and limiting seller concessions, inventory levels do seem to be rising. That’s a positive sign for buyers who have been frustrated by the lack of inventory in some of the most desirable parts of the city.