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2007 Market review Luxury Homes in EastSt Paul

• 25 bungalows sold –with 12 of the solds having a creek location. Not every bungalow was a walk out .

· Average size was 2136 sq. ft

· Average sold price of all homes was sitting @ $578,568 and $270.87 psf

• Note: 8 homes sold were between 1620 sq. ft and 1900 sq. ft. size w selling prices ranging between with an average selling price psf @ $261.25 ($404,900-$510,000).
• Observations –It is Interesting to note that there were 4 homes that sold in the 1620-1675 sq. ft. These are the smallest homes built in PFP and double garages were the standards and unfinished basements and quality of finishes in most instances was below average. But they got exceptional selling prices ranging between $249 & $284 per sq. ft In the instance that the lower level was finished and the finishes were of an upper grade the price per sq. ft was @ $284 for a 1620 sq. ft bungalow on a corner lot

· Creek walk out bungalows had an average selling price of $302.75 psf

· The creek homes sold between $485,000-$925,000 with an average selling price sitting @ $693,333

• 4/12 of these homes sold between $620,000 and $695,000.
• 4/12 of these homes sold between $745,000 and $875,000
• 1/12 home sold @ $925,000 and was not on MLS
• NOTE The benchmark was reached in this category by a Show Home which sold for $376 psf for 2248 sq. ft @ $845,000
• 5 of the walk out homes homes sold @ the $335 psf and up to the $376 price psf.

CONCLUSION

· For the first time we have market data that shows what a 1600-1700 sq. ft bungalow is worth in PFP. The sold prices supports the theory that there are a lot of people who want to live in PFP but can not afford to pay in the $500,000 +. They are willing to buy smaller to buy the address.

· The smaller homes are able to receive a bigger than average $ for what their homes actually offer.

· If these homes had a greater wow factor with the luxury finishes like granite etc that they see in our Show Homes we are very certain we would have been able to achieve an even higher selling price.

· Creek lots with walk outs remain very popular and are very valuable to the consumer. They will pay a high dollar for a good product with luxury finishes and a great location.

2006 Market Review of Luxury Homes (includes 2 solds from last quarter) in East St Paul

• 20 bungalows sold – with 9 of solds having a creek view/and or walk out basement
• Average size was 2248 sq. ft
• Average sold price of all homes was sitting @ $583,075 and $259.38 psf

• Note: Only 2 solds were in the smaller size range of 1784 & 1809 sq. ft- with price psf- $271 & $286 psf.
• This supports the fact that smaller homes sell for a higher price per sq. ft. One need not need to be cautious about designing the 1800-1900 sq. ft. homes with same quality of luxury finishing as the larger 2000+ models. Many will pay for the luxury and this need not tied to the size. The best designed plan would be more/just as important as the size.

· Creek - walk out bungalows had an average selling price of $292.87 psf

• The creek homes sold between $510,000 ($286 psf) 1784 sq. ft. to $850,000 ($342 psf) and was 2485 sq. ft.

• It is fair to say that most homes on the creek with a walk out design are 2200 + sq. feet. The purchasers looking for water homes typically are looking for larger homes with all the bells and whistles and more and have been a younger profile as well.(30-40 years of age)

Conclusion

• People will pay the price for the right product. It is the combined qualities of having a wow factor and luxury finishes and good building componants that secure the higher prices.

• We are of the opinion that not everyone wants to have a walk out basement that they have to finish.For lots of people the open exposure that is a natural componant of the creek walk- out setting can be of concern.