Found the perfect home in Eden Prairie? Wondering how much it can sell for in the future? Here’s what you need to know about Eden Prairie real estate and resale value.
A snapshot of Eden Prairie real estate
Eden Prairie home values are some of the highest in Minnesota, and for good reason. The city consistently ranks among Money Magazine’s Best Places to Live and even landed first spot in 2010. Niche.com also named Eden Prairie the best suburb to live in Minnesota as recently as 2021. 93% of residents share the same sentiment, considering the city “above average” in a 2020 quality of life survey.
Located about 12 miles southwest of Minneapolis, Eden Prairie encompasses about 35 square miles of scenic bluffs and rolling hills. With protected areas and bountiful wildlife, the city strikes a delicate balance between modern suburbia and natural beauty. Its proximity to the Minnesota River also creates countless opportunities for outdoor recreation and water-based activities.
Eden Prairie real estate at a glance
According to data from the Minneapolis Association of Realtors, the price per square footage increased to $188 in 2021, up from $167 in 2020. Sellers were quick to capitalize on soaring prices – the number of new listings increased by 12.6% in 2021 while home sales climbed 17%. The average number of days on the market decreased to 25 from 48 days.
Eden Prairie home prices are expected to maintain an upward trajectory for the remainder of 2022. It will be common for sellers to receive multiple offers for their properties.
These trends point to a strong seller’s market. Buyers who want to secure their dream home must come prepared and be strategic with the home search. They must make strong offers, get pre-approved for a mortgage, view newly listed properties early, and work with an experienced agent.
Why potential resale value is important when looking for a home
Resale value refers to a property’s estimated worth, or the amount that it is expected to sell for, in the foreseeable future. Generally speaking, a property with good resale value is a good investment while a home with poor resale value can easily become a burden down the road.
For many buyers, resale value may not be an important factor, but it should be.
Choosing a home with resale value will make selling easier when homeowners must reevaluate their needs and preferences due to major life changes such as work relocation, childbirth, medical issues, or retirement.
And while there are certain improvements that can be made to the property to help boost resale value, such as adding square footage, installing smart home technology, making it more energy efficient, or updating the kitchen or bathroom, there are other factors that are unchangeable, like location or the age of the property.
That’s why resale value is an important consideration when searching for a suitable home. While it shouldn’t take precedence over a buyer’s personal preferences, resale value will make it easier to attract buyers when it’s time to move on.
Tips for finding a home with good resale value
It’s easy to think that the physical characteristics of a home, such as square footage, on-site amenities, and quality workmanship, automatically translate to good resale value. But according to Investopedia, the physical structure of a home tends to depreciate with time while the land on which it’s situated usually appreciates in value.
Knowing how land values influence resale value in Eden Prairie real estate will enable buyers to make better choices. Land values go up because land is in limited supply. As the population grows, the demand for buildable land increases, driving up land values over time.
This means that buyers should be willing to look past a home’s physical beauty and pay attention to other factors that can potentially affect resale value.
Real estate is all about location, which has an undeniable impact on resale value. However, there are many nuances to land values and location. For one, not all land within a given area is equal.
Different locations within the same neighborhood will have varying land values.
For example, a home located along a cul-de-sac may get better offers than a home near a busy road because the former has less foot traffic and is considered more desirable for families with small children.
Likewise, a home located in an elevated area with sweeping views of the city skyline will inevitably command higher prices than homes situated in a low-lying area of the same neighborhood.
Additionally, some neighborhoods may develop unique socio-cultural and demographic characteristics that can affect demand and property values. For instance, a neighborhood that is associated with high income earners and affluent residents may appear more valuable to buyers.
Gated versus non-gated communities
Properties within gated communities typically have higher resale value. A 2016 study in the Journal of Real Estate Research found that homes in gated communities can command $30,000 more on average compared to similar properties in non-gated communities. Higher home values likely arise from the benefits associated with gated living, such as privacy, maintenance, construction quality, uniform home designs, and deterrents against crime and undesirable activities.
However, the study also found that the cost of shared amenities like clubhouses, swimming pools, and tennis courts within gated communities can also reduce sale prices by about $19,500. Buyers typically associate additional maintenance costs associated which can sometimes outweigh the benefits and don’t always provide additional value.
Are there any planned developments near the home or the neighborhood? These developments can potentially impact resale value. In most cases, new developments can help increase resale value in the long term because this usually creates more opportunities to enrich the lives of those who live in the community.
Whether it’s a new shopping center, a new road, or the revitalization of the downtown area, new development means that the community is growing and that it attracts investment. Having access to a diverse selection of shops and restaurants can also make a property more appealing to future buyers.
However, certain kinds of development can negatively affect resale value in the short term. This depends on various factors, such as the proximity to construction sites as well as the type of development taking place.
Fortunately, many neighborhoods and subdivisions impose restrictions on the kind of new construction that can be carried out within the community. These restrictions are usually set when developers purchase buildable land or when a homeowners association (HOA) takes over the community. Restrictions on new construction help preserve the character and appeal of the neighborhood.
The average age of the neighbors can provide insight to land or home appreciation. For example, buyers with small children typically prefer a neighborhood with other families so that their kids can have playmates.
Eden Prairie had a population of 64,198 by 2021 and is currently growing at a rate of 0.95%. It is the 15th largest community in Minnesota. According to city data, about 69% of residents are 18 or older while 13% are 65 or older.
Eden Prairie is an excellent choice for families with children primarily because there are many other families with children living in the city. There are more than 24,000 households in Eden Prairie. It has a high homeownership rate of 73% which brings stability to the community. This makes it a place where parents and children can potentially develop friendships and social ties with other residents.
Good schools can affect desirability and demand for homes in specific school districts. Buyers with school-aged children seek out neighborhoods that are zoned under reputable school districts. Eden Prairie has a well-educated population with 64% of residents having obtained a bachelor’s degree or higher, according to city data. The city’s exceptional public school district and number of college-educated residents create an environment that is conducive to academic success.
Median home prices
How much are the other homes in the area worth? This will help shed light on a given property’s resale value. Generally speaking, homes with good resale value are priced correctly for their location as well as the age and condition of the property.
Correct pricing can also have a tremendous impact on how quickly a home sells, and for how much. According to Zillow, overpriced homes tend to languish for months without getting an offer while accurately priced properties will usually receive an offer within a month.
For instance, if a home is listed at $550,000 while neighboring properties are valued at less than $350,000, buyers may think twice about making an offer on a considerably more expensive house when nearby properties are more affordable. Likewise, if a home is the least expensive property on the block, being surrounded by higher value homes can help boost its resale value.
This is why buyers should familiarize themselves with median home prices for a given area before making an offer. According to data from Realtor, the median listing price in Eden Prairie is $475,000, up 1.3% year-over-year, while the median sales price is $444,500. Home prices ranging from $175,000 to $4.5 million. It is a competitive housing market with sellers getting multiple offers for the best prices properties.
Short sales and foreclosures
Neighborhoods with a disproportionate number of short sales and foreclosures can potentially decrease resale value. This is the case even when the properties being foreclosed are not direct comparables in terms of square footage.
Amenities and attractions
Amenity-rich communities are naturally more attractive to buyers who want to live a leisurely lifestyle. Eden Prairie offers world-class shopping and entertainment at Eden Prairie Center, a shopping mall with major retailers, casual dining restaurants, and state-of-the-art cinema. Downtown Eden Prairie has an amazing selection of boutiques, specialty stores, wine cellars, and restaurants.
Eden Prairie has more than 1,000 acres of parkland and over 13 miles of nature trails where residents can enjoy all kinds of activities. These include Edenvale and Miller parks, both of which are meticulously maintained.
Pet owners will also appreciate the city’s seasonal off-leash dog parks with fenced areas for pets, including:
- Nesbitt Preserve Park Hockey Rink
- Homeward Hills Park Hockey Rink
- Edenvale Park Hockey Rink
- Crestwood Park Hockey Rink
- Staring Lake Park
- Bryant Lake Regional Park
Popular outdoor attractions include the Staring Lake Sledding Hill and Ski Trails, which features a 700-foot sledding hill, and Staring Lake Archery Range, which offers 12 shooting stations with targets at various distances.
The city is known for its natural springs, particularly Fredrick-Miller Spring and Richard T. Anderson Conservation Area Spring.
Eden Prairie also provides access to several lakes for fishing and boating, including:
- Red Rock Lake
- Staring Lake
- Bryant Lake
- Riley Lake
- Rice Lake
According to 1420 WBSM, Eden Prairie ranked #16 for safety in Minnesota in 2022. Residents are served by the Eden Prairie Police Department while the city’s gated communities typically have guarded access points and restricted entry for homeowners’ peace of mind.
Eden Prairie has a robust business climate with over 2,220 businesses operating locally. It is also home to the headquarters of major companies like UnitedHealth Group and Supervalu. The city has expensive infrastructure and clean and well-maintained parks in addition to having its own shopping center and airport, making it an attractive location for entrepreneurs and professionals in search of career opportunities.
Where to find a property with good resale value potential in Eden Prairie
Eden Prairie is made up of 15 neighborhoods, including:
- Eden Prairie West
- Pioneer Park
- Eden Prairie Southwest
- Eden Prairie South
- Eden Prairie Southeast
Work with a local expert for insight on resale value and market trends affecting your decision to buy a home in Eden Prairie.
Work with Platzke Real Estate Group Today
If you’re ready to explore Eden Prairie real estate, Platzke Real Estate Group is here to assist you. Call us at 952.942.7777. You can also reach us here. We’ve been serving clients in and around the Twin City Metropolitan Area for over 37 years. Ryan, Brace, and our team of 30+ real estate professionals will help make your next real estate transaction a successful one.
Known for unprecedented marketing and getting the highest possible price for resale homes, our recognized industry expertise is advantageous for sellers and buyers looking for the best bargains in the market.
We have been the #1 homeseller in the area over 25 years with an estimated $2 billion in sales and more than 7,400 homes sold. We have also been the top real estate team for the state of Minnesota at Coldwell Banker Burnet since 2015.