Minnesota Ranked 4th Most Expensive Real Estate Market In Nation

MINNEAPOLIS (WCCO) -- Buying a house in Minnesota may be more expensive than you thought.

A report released Tuesday from Coldwell Banker shows that our state ranks 4th in the nation when it comes to the average listing price of a four-bedroom, two-bathroom house. It found that Orono was the most expensive market in Minnesota, with the average home there costing about $1.3 million dollars.

Orono was the only city outside of California on the list of the top 10 most expensive housing markets in the country. It ranks 9th nationally.

The Coldwell Banker Home Listing Report says the average listing price in Minnesota is about $430,000. But if you have your sights set on something fancier, Orono is the place to be.

Gregg Larsen is a real estate agent for Coldwell Banker who's worked in the west metro from more than 20 years.

He showed us a four-bedroom house on a two-and-a-half acre lot that's for sale on Carriage Lane in Orono. It lists for $1.2 million, and he expects someone to buy it within a few months.

"We get a lot of transferees here, that are moving here for a job and migrating towards the western suburbs," he said.

Larsen says what's driving up the price of homes in Orono is what the community has to offer.

"We have a great standard of living here," he said. "We have great amenities. It's close to downtown Minneapolis, we've got Lake Minnetonka, great school systems, and great parks."

After Orono, the list of most expensive cities in Minnesota includes Medina, Edina, Shorewood and North Oaks. Topping the list of most affordable cities in the state is Sauk Rapids, with an average listing price of $172,100. Moorhead, Albert Lea, Fairmont and Owatonna are next in line on the affordable list.

Larsen says over the last 20 years, Minnesota's reputation for being a great place to live has widened, and that's why we are now ranked the 4th most expensive state to buy a house.

"I think it will surprise a lot of people, but we have a pretty healthy economy here and lots of large Corporations," he said.

At the top of the most expensive list nationwide was Newport Beach, California, which is south of Los Angeles. The average price of a 4-bedroom home there was 2-point-2 million dollars.

Cleveland, Ohio was at the top of the most affordable list for the third year in a row, with $74,000 as the average listing price for a four-bedroom house.