Quarterly Note: Summer 2025
Signs Are Back in Fashion
After five years of sellers calling the shots, the residential real estate market has finally flipped the script. For the first time since 2020, supply has overtaken demand in major markets across the U.S., and it’s bringing all kinds of interest—especially in the luxury lane where price tags start at $1 million and up.
The real estate comeback isn’t just about more listings. It’s also about the most talked-about topic at cocktail parties and golf clubs across America: After climbing north of 7% in 2023, mortgage rates have slowly drifted down—hovering around 6.75% for 30-year loans today. That’s better than the peak, but not enough to light the fuse on a market explosion.
What's the magic number? Most analysts agree rates would need to drop below 6% to truly uncork demand, especially Millennials aging into their prime buying years and Boomers looking to downsize from their oversized estates. Even so, the luxury housing market is moving again, and if interest rates come down, it will only get more heated.
There are still areas where we are seeing an expectation gap. With inventory up and rates slowly retreating, one major issue remains: the seller-buyer delta. In plain English? Sellers may still believe it’s 2021. Buyers know it’s 2025. Buyers are looking at days-on-market stats and are armed with comps and confidence.
The result? In some instances, there is a bit of a standoff. However, when a property is listed at "a fair market price," we are finding there are plenty of buyers out there ready to make an offer.
Perhaps the most entertaining part of this twist? Real estate is back in everyday conversation. It’s no longer just the domain of agents and HGTV hosts. Americans are once again obsessing over real estate, App induced estimates, and Instagram-worthy interiors. Everyone knows someone trying to sell, someone trying to buy, and someone waiting it out.
Markets like this don’t last forever. The balance of power is shifting, but not locked in. If rates significantly fall, buyers will be back in bidding wars. If rates stay sticky or the economy stutters, even more listings may hit the market, and prices could soften further. The real estate discussion is back, and it’s a lot more interesting.
A Few Stats of Interest
% of luxury home markets still priced above 2022 peak: 63%
Average days on market for $1M+ homes (May 2025): 52
Number of TikToks about mortgage rates this month: Literally thousands.
Women Are Shaping the Luxury Real Estate Market in 2025
Once thought of as a man’s game, the luxury real estate market has a new powerhouse—and she’s not just showing up for the open house, she’s running it. In 2025, women are not only increasingly dominant as buyers of luxury homes, they’re also influencing design, reshaping expectations, and often leading the charge in the deal room. Women—especially single women and self-made professionals—are redefining the landscape of high-end real estate. It’s no longer unusual for a solo female buyer to walk into a $2 million home showing—and make a serious offer. In fact, single women are buying luxury properties at more than twice the rate of single men, and many of them are doing it with strong cash positions or large down payments that take interest rates out of the equation altogether. These aren’t just trophy homes. For many women, these properties represent financial independence, lifestyle elevation, and long-term stability. Whether they’re corporate execs, founders, or seasoned investors, today's female buyers know exactly what they want—and aren’t afraid to walk away if a property doesn’t deliver.
Female and the "New Luxury" It's personal:
Gourmet kitchens built for entertaining
Spa-like primary suites with statement bathrooms
Functional dual home offices
Private outdoor spaces for relaxation or hosting
Tech, security, and sustainability woven seamlessly into the home
Luxury has become less about excess and more about experience, and female buyers are driving that change.
What makes a luxury home worth it? For many women, it’s not just the resale math. It’s the lifestyle return.
Female buyers are more likely to consider factors like:
Community and proximity to wellness or cultural amenities
How a home “feels” to live in, not just how it photographs
Energy efficiency, layout flow, and intuitive spaces
Whether a property supports evolving life stages (career, family, retirement)
That means homes that once felt “perfect on paper” may linger, while thoughtfully designed properties that resonate emotionally get snapped up—often above ask.
Final Word: The Future of Luxury Is Feminine
As we head deeper into 2025, one trend is crystal clear: women are no longer just a part of the luxury real estate market—they’re shaping it. From what’s built to how it’s marketed to who ultimately signs on the dotted line, the influence of women is not just growing—it’s defining the future.
If you want to understand where the luxury market is going, follow the decisions—and the dreams—of women.
The Momentum Experience
One of the many reasons the real estate market is such a fascinating subject to so many is that it is always in motion. We are constantly engaged in thoughtful conversations with our clients, friends, and colleagues about the newest and future trends, both locally and nationally.
As of late, the problem of "lack of inventory" has made its way into most conversations. When the market becomes tight, the problems are solved through non-conventional methods involving years of Experience where we have accumulated knowledge and built a network outside of the MLS and other normal methods of information. This valuable network of investors, buyers, sellers, and information creates a chain of Momentum, bringing parties together in a way that would not have otherwise been possible. We have spent over 25 years putting that Momentum into place and would be happy to show how it can work for you.
Speaking of our network, we have a number of buyers looking to purchase in the neighborhoods and areas below. Please contact us if you or anyone you know may have an idea or be able to help.
Town Homes: Portico/Minnetonka and Amesbury /Shorewood
Condos: Parkers Lake Road/Minnetonka
Rambler: Lake Minnetonka - Lower Lake $4-6 Million
Rambler: Medina/Orono/Wants a "view" - $1.5-2.0M
Rambler: Wayzata/Minnetonka/Plymouth/Long Lake - $1.0M
*Main Floor Primary is the new word on the street
Our Listings
365 Waycliffe DR. South
Wayzata, MN
$824,000
Serenely situated on the western banks of Gleason Lake and within walking/biking distance into the town of Wayzata is one of the most sought after townhome communities in the western suburbs known as Waycliffe.
The ease of this bright and light one level/open floor plan with the main floor primary bedroom/ensuite bathroom is the definition of turn key living. Designed with hardwood floors, beautiful built-in cabinets, nicely appointed kitchen with newer appliances including a gas stove and two ovens, naturally leads into the large and open family room with a wonderful fireplace.
The generous lower level has 2 guest bedrooms, a second fireplace and plenty of storage.
You may add your personal touch, but this is ready be your home!
2610 W. Lafayette Road
Excelsior, MN
Mid $4mil (Contact us for Pricing)
Welcome to 2610 W Lafayette Road, a truly exceptional lakeside retreat nestled on 1.2 acres of elevated privacy, over 235 feet of pristine shoreline on the coveted Lafayette Bay—renowned for its crystal-clear, “A-rated” sandy bottom. With breathtaking 270-degree eastern views, this one-of-a-kind property offers panoramic vistas stretching across the tranquil waters to Big Island, just a mile off your dock, and the charming shores of Minnetonka Beach.
Crafted for both beauty and function, this timeless home was fully remodeled just ten years ago, blending refined elegance with modern comfort. The main level features a serene primary suite—with an expansive bath, while the upper level offers four additional bedrooms and two more baths, accommodating family or guests with ease. In total, there are 5 baths, which includes main floor primary and powder room, 2 on the second level and 1 on the lower level.
Warm hardwood floors, natural stone countertops, and high-end appliances speak to the quality throughout. The finished lower level is designed for living well, complete with a recreation room, private office, and a dedicated exercise space. Outside, over an acre of level lawn invites children to run, friends to gather, and memories to be made, all surrounded by lush greenery and lake breezes.
The property also includes a two-car attached garage and an additional detached two-car building, offering ample storage for lake toys and vehicles alike.
More than a home, 2610 W Lafayette Road is a legacy property—a place that grows with your family and draws loved ones back, year after year. A sanctuary on the shores of Lake Minnetonka where sunrises are unforgettable, summers are endless, and life unfolds beautifully.
When Our Buyers Find Happiness
Stunning 6000+ sf fully remodeled rambler on over 2 acres with dramatic entertaining spaces inside and out. Main level living that includes 2 bedrooms on the main level, custom millwork, designer lighting, two fireplaces, formal and informal dining, a gourmet kitchen, and a timeless style that perfectly blends classic design with a contemporary flair.
If you’d like to discuss anything about real estate:
Decker.velie@cbburnet.com
Bjvelie@cbburnet.com