H
igh mortgage rates and economic uncertainty have not dampened demand for Minnesota's lakeshore properties, which are selling fast and at a premium. According to data from the Minnesota Realtors association, the median price of lake homes has risen by more than 8% in the past year, reaching an all-time high of $550,000 in April. This trend is consistent with another market shift: sales of $1 million-plus homes increased nearly 18% last month, while those priced under $350,000 declined.

    Buyers are particularly aggressive on Twin Cities metro-area lakes, which are closer to high-paying jobs than lake homes in more rural areas popular with second-home buyers. Lake Minnetonka is the epicenter of this demand, where Cathy Green is preparing to sell her childhood home for a whopping $895,000. Despite the high price tag, Green notes that "times have changed a lot" and that the cost of living has increased significantly since she bought the house with her parents over 50 years ago.

    The limited supply of lakeshore properties and growing demand from baby boomers looking to gather friends and family are driving up prices across the state. In fact, lake homes have more than doubled in value over the past decade, making them a safe bet for investors like Ted Hess, who recently bought a lot on Leech Lake with plans to build a retirement home. With mortgage rates and record prices affecting other parts of the market, lakeshore properties remain a coveted luxury that upper-bracket buyers are willing to pay top dollar for.