Quarterly Note: Fall 2025
The New Mood of Luxury:
A Market Redefining Itself
There’s a quiet electricity in the air of today’s luxury home market — the kind that comes when confidence begins to return after a long pause. Homes above $1 million, once languishing under the weight of 7% interest rates, are now moving again. The mood has shifted from hesitation to discernment. It’s not a frenzy, but a poised, deliberate recalibration — a market where serious buyers and quality properties find each other in a more thoughtful dance.
Rates, while still elevated by historic standards, have softened from their peaks. That small change has opened doors for buyers who were waiting for a signal. Across the country, and particularly in lifestyle areas — think lake communities outside Minneapolis, golf enclaves near Savannah, or the horse country of the Midwest — there’s renewed motion. Inventory levels remain inconsistent, which gives well-positioned sellers an edge, yet buyers hold more leverage than they have in years. It’s a market of balance — a rare moment when both sides feel cautiously optimistic.
The modern luxury buyer is a different breed now. They’re more global, more flexible, often running businesses or careers that can be done anywhere. They’re trading the noise of city towers for acreage, trees, water, and privacy. The suburbs and exurbs have become the new penthouse floor — places where design and serenity merge.
Architecturally, the aesthetic has evolved. Clean modern lines softened by organic warmth now define the most coveted homes. Steel and glass meet white oak and limestone. Light itself is a design feature — flooding open living spaces that blur the boundary between inside and out. Natural materials, spa-level baths, walk-in sculleries, and detached guest houses are not indulgences anymore — they are expectations.
Taxes and insurance, once an afterthought for affluent buyers, now shape buying patterns. High-tax states are seeing a slow but steady outflow toward the Carolinas, Florida, Texas, and Tennessee. But even in pricier states, buyers are willing to pay for beauty, privacy, and permanence — the things that hold value beyond a spreadsheet.
In short, today’s luxury market feels less like speculation and more like curation. It’s about owning a place that tells your story, quietly and with confidence, in a world that’s learned to listen again.
Featured Listings
1545 Hunter Drive, Medina, MN 55391
$2,995,000
A westwardly turn off of Hunter Dr. meanders down a private journey past a vineyard and through pastures that eventually reveal a modern landmark - an architectural statement built by L. Cramer.
This refined contemporary home stands with sculptural presence amid 14 acres of meadow, pond, and a distant tree line. The 8,000 square foot home with main floor living room, family room, office, library complete with wet bar, sunroom, wrap around decks, lower level exercise room and sauna brings broad volumes. Included are arched rooflines and wide expanses of glass that invite light from every direction, creating an atmosphere both open and serene.
The main floor, primary bedroom opens to the sleeping suite with fireplace and walk in dressing spaces and closets. Two additional second level bedrooms and third level loft spaces provide an elevated view of the main floor and outdoor landscape.
The guest house mirrors the home’s quiet artistry with one bedroom, bath, kitchenette, two attached garage spaces, next to the crystal blue pool and overlooking a pond alive with wildlife that changes with the seasons. Designed for privacy, beauty, and light, this is one of Medina’s most significant country properties - where architecture, land, and sky meet in perfect paradise.
Pinnacle Sale
2610 W. Lafayette Road, Excelsior, MN
$4,350,000 (SOLD)
Welcome to 2610 West 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 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 West 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.
What's New
Autographed Homes In High Demand
Homes with a famous architect's signature on the blueprints are in high demand, commanding premium prices due to their architectural significance, historical value, and unique design. Properties by architects such as Frank Lloyd Wright, Philip Johnson, John Lautner, and Marcel Breuer are highly sought after and are often seen as investments, with some famous examples including the Ennis House and Fallingwater.
Why these homes are in demand
Architectural significance: These homes are not just houses but are considered works of art by influential figures in architectural history, with designs like Wright's Prairie Style or Lautner's organic modernism.
Historical value: Many of these homes have a rich history, with some having been owned by notable figures or having played a role in architectural movements.
Investment potential: They are often seen as valuable assets that appreciate in value over time, and some are even designated as historical landmarks.
Unique design: The distinctive features, such as built-in furniture, unique materials, and specific architectural styles, make these properties stand out from typical homes.
Ralph Lauren’s Vintage Play: Owning the Resale Game
Ralph Lauren has turned vintage into a high-growth revenue engine, reportedly generating a meaningful stream of revenue from resale alone. The brand has quietly refined the playbook: buying back its own archive pieces from online marketplaces, authenticating and curating them, and reselling at more than 5x the typical going rate. “A 1990s Polo hunting vest? $500,” says Ryan Atkins, the co-founder & CEO of circular commerce platform Supercycle. “A faded Rugby shirt from your uni days? Listed for triple what you’d find on eBay.”
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If you’d like to discuss anything about real estate:
Decker.velie@cbburnet.com
Bjvelie@cbburnet.com