The State of Luxury Real Estate Summer 2026
State of The Luxury Market
The luxury housing market continues to tell a different story than much of residential real estate across the country.
While higher interest rates and affordability challenges have slowed activity in many price ranges, affluent buyers remain active. Strong equity markets,
ousiness crowu ano senicant nousenolo wealtn conunue lo suobor
demand for exceptional homes, even as buyers have become more deliberate and discerning. Across the country, the luxury market has shown resilience, favoring homes that offer timeless architecture, privacy, outstanding locations, and impeccable presentation.
Today's luxury buyer is increasingly discerning. They are searching for thoughtful design, light-filled spaces, and homes that create a genuine sense of purpose a place where every room feels intentional and every space invites a particular way of living. They also expect pricing that reflects today's market realities, where value is measured not only by square footage, but by quality and craftsmanship. Locally, the story is even more encouraging.
The Wayzata, Minnetonka, Deephaven, and Excelsior markets continue to demonstrate remarkable strength. Well-priced homes of exceptional quality are attracting buyers, while properties that miss today's expectations on condition or pricing often require greater patience. The market has become more balanced than the extraordinary seller's market of the past several years, yet demand for premier properties remains healthy.
One statistic from our recent regional luxury real estate meeting particularly caught our attention. During the past 90 days, the combined weekly pending and closed sales of homes priced above $1 million exceeded $100 million. Even more impressive, that represents nearly an 8% increase over the same period one year ago.
That tells an important story.
Luxury buyers have not disappeared —they have simply become more selective. They continue to recognize quality craftsmanship, architectural significance, exceptional locations, and enduring value. When those elements come together, the market continues to respond with confidence.
As we enter the second half of 2026, we remain optimistic. Inventory has improved, creating more opportunities for buyers, while well-prepared sellers continue to benefit from a market supported by substantial wealth and steady demand. It is no longer a market driven by urgency—it is a market driven by confidence, preparation, and quality. And for those who understand that distinction, the outlook remains exceptionally bright.
Featured Listings
1492 Homestead Trail
Medina, MN 55356
$3,895,000
Set atop a commanding 5+ acre homesite and perched nearly 30 feet above the surrounding landscape, this Streeter-built Prairie signature estate is a study in architecture, light, and place. Expansive walls of glass capture unobstructed, permanent western views across the natural beauty of Baker Park, filling the home with ever-changing light and spectacular sunsets. Richly detailed throughout, the residence showcases an extraordinary palette of natural materials, including heart pine, Douglas fir, maple, and knotty pine tongue-and-groove ceilings, complemented by substantial Douglas fir beams that lend warmth, character, and timeless authenticity.
Designed to capture both everyday living and grand-scale entertaining, more than 8,000 square feet of thoughtfully crafted living space offers five bedrooms, seven baths, a luxurious main-level primary suite, and a custom-built guest house. Every detail reflects a commitment to enduring craftsmanship, architectural integrity, and exceptional comfort. An extraordinary estate where privacy, beauty, and timeless design exist in perfect balance.
Continue the experience
781 Ferndale Road North,
Orono, MN 55391
$3,499,000
Tucked away on two breathtaking acres just minutes from Wayzata, this extraordinary one-owner Erotas estate blends timeless craftsmanship with serene privacy. Over 10,000 square feet unfold beneath soaring, beam-lined ceilings crafted from reclaimed Lake Superior timber, where sunlit spaces open to peaceful views in every direction. Designed for both grand entertaining and intimate retreat, the home offers a resort-style pool and pool house, indoor sport court, elevator, and exquisite main-level primary suite-creating a rare sanctuary of beauty, scale, and enduring quality.
Under Contract
Set along one of Deephaven's most quietly admired streets, this timeless residence on Heathcote Road captures a rare balance of classic architecture and livable design. Framed by a two-acre, tree-lined setting, the home unfolds with a sense of calm permanence-where elegance has been allowed to exist, uninterrupted, and intentional.
Why The Best Sailors In America Have Come From Lake Minnetonka
For more than a century, Lake Minnetonka has quietly earned a reputation as one of America's premier inland sailing venues. While the East Coast may be synonymous with grand yacht clubs and ocean racing, those within the sport have long recognized that many of the nation's finest sailors first learned their craft on these remarkable waters. Over the generations, Lake Minnetonka has produced an extraordinary number of National, North American, and World Champions, along with Olympic medalists, Olympians, and legendary coaches whose influence has reached far beyond Minnesota. Olympic Gold Medalist Billy Allen, Olympic Silver Medalist Hans Fogh, Olympian Bill Hardesty, and renowned U.S. Olympic Sailing Team Head Coach Gordy Bowers are just a few whose names are forever linked to the lake.
The secret lies not in towering waves, but in subtlety. Minnetonka's ever-changing winds, protected bays, narrow channels, and shifting breezes demand patience, instinct, and tactical precision. It is a lake that rewards thoughtful decision-making over brute strength, teaching sailors to anticipate rather than react. The lessons learned here translate effortlessly to waters around the world.
Just as important is the culture that has flourished along its shoreline. Since the late 1800s, the Minnetonka Yacht Club has fostered one of the country's most respected racing traditions, while generations of young sailors have come through the Lake Minnetonka Sailing School and its celebrated junior racing programs. Children often begin in small sailboats before progressing through increasingly competitive fleets, developing not only exceptional sailing skills but also confidence, discipline, sportsmanship, resilience, and lifelong friendships. For many local families, sailing is more than a pastime-it is a cherished tradition passed from one generation to the next.
Padel: The Hottest New
Racquet Sport
The Next Racquet Revolution: America's Growing Love Affair with Padel
Not long ago, pickleball seemed to appear almost overnight, transforming parks, country clubs, and neighborhoods across America. Now another racquet sport is quietly gathering momentum—and many believe it could become the next great addition to our active lifestyle. It's called padel.
Imagine a game that blends the strategy of tennis with the creativity of squash.
Played exclusively as doubles on a smaller court enclosed by glass walls, padel rewards placement, teamwork, and finesse more than sheer power. The walls remain in play, creating long, entertaining rallies that make the game both exciting to watch and surprisingly easy for beginners to enjoy.
While padel has been wildly popular throughout Spain, Italy, and much of Latin America for decades, the United States is only beginning to discover it.
More than one million Americans played padel in 2025, with hundreds of new courts opening and new clubs emerging from Florida and Texas to California and the Northeast. Industry observers believe the sport is entering the same rapid growth phase that pickleball experienced just a few years ago. (padelusa.org)
For luxury residential communities, country clubs, and thoughtfully planned developments, padel offers something particularly appealing. The sport attracts families, active professionals, retirees, and competitive athletes alike, creating another reason for neighbors to gather, socialize, and build community. It is as much a lifestyle amenity as it is a sport.
Introducing Sydney Sonday
Sydney Sonday believes real estate is ultimately about people-the relationships built, the trust earned, and the lives shaped along the way.
A graduate of Calvin University with degrees in Computer Science and Biochemistry, Sydney brings a unique combination of analytical thinking and personal connection to her clients. Her academic background allows her to quickly interpret market data, identify emerging trends, and understand the analytics that help shape real-time property values— providing clients with
informed guidance in an ever-changing market.
Her experience as an entrepreneur, fundraiser for Van Andel Institute, and former world-ranked pickleball player has reinforced the values that guide her work today: discipline, integrity, and a genuine commitment to serving others.
At Velie Real Estate, Sydney is focused on building lasting relationships and delivering an exceptional experience for every client. She believes the best real estate professionals are trusted advisors-people who listen carefully,
communicate clearly, and remain a resource long after the transaction is complete.
There's More to Explore-Check it Out:
If you’d like to discuss anything about real estate:
Decker.velie@cbburnet.com
Bjvelie@cbburnet.com