By a Top Luxury Real Estate Agent in Minneapolis
Tucked along the southern shore of Lake Minnetonka, the historic town of Excelsior, Minnesota has quietly charmed locals and visitors for more than 150 years. Known for its walkable streets, lakeside parks, and small-town energy just minutes from Minneapolis, Excelsior has long been a beloved destination.
But something interesting has been happening lately in the real estate market — especially in the area locals affectionately call “The Village.”
What Locals Mean by “The Village”
When people refer to “The Village” of Excelsior, they’re typically talking about the historic core of town just north of Minnesota State Highway 7. The area generally sits:
- North of Highway 7
- East of Oak Street (County Road 19)**
- West of where Minnetonka Boulevard meets Excelsior Boulevard
This pocket contains the heart of downtown — charming cottages, classic lake homes, and walkable access to restaurants, marinas, and parks. For years, the area felt like a hidden gem within the broader Twin Cities metropolitan area.
Now the secret is getting out.
The Rise of Luxury Homes in Excelsior
Over the past several years, Excelsior’s Village has been experiencing a noticeable shift. Many of the original cabins and smaller historic homes that once defined the neighborhood are being purchased, renovated, or rebuilt into modern Minnesota luxury homes designed for today’s buyers.
The result is a fascinating transition:
- Fewer entry-level homes
- More architecturally significant builds
- Rising land values near downtown and the lake
This evolution is beginning to reshape pricing in a meaningful way.
A Look at the Numbers
The chart below highlights the average sale price trend for homes in the Excelsior “Village” compared with nearby Wayzata, Minnesota, historically one of the most expensive communities on Lake Minnetonka.
In June 2025, the Excelsior Village market reached an average sale price of $1,832,765 — a notable milestone for an area once considered the quieter side of the lake.
Meanwhile, Wayzata recorded an average sale price of $1,480,868 during the same period.
What does this tell us?
Two major trends are at play:
- Luxury redevelopment is accelerating in Excelsior.
- The value of land within walking distance of downtown is rising rapidly.
In short, the market is starting to recognize what locals have known for years — this town is special.
Why Buyers Are Flocking to Excelsior
As a top luxury real estate agent in Minneapolis, I’ve seen firsthand why buyers are increasingly drawn to this pocket of Lake Minnetonka. A few key factors stand out:
1. Walkability
True walkable lake towns are rare in Minnesota. Excelsior offers exactly that — coffee shops, dining, boating, and parks all within a few blocks.
2. Authentic Character
Unlike many newer developments, Excelsior has genuine history and architectural diversity.
3. Lake Minnetonka Lifestyle
Access to boating, sailing, and waterfront recreation remains one of the most powerful drivers of demand for Minnesota luxury homes.
4. Proximity to Minneapolis
Buyers can enjoy a resort-style setting while still being roughly 20 minutes from downtown Minneapolis.
What This Means for Buyers and Sellers
If current trends continue, we may be seeing the early stages of a long-term value shift within the Lake Minnetonka market.
For buyers, that means opportunities may become increasingly limited in the Village as inventory tightens and redevelopment continues.
For sellers, the rising demand for walkable luxury homes near the lake presents a compelling window to maximize value.
Personally, I’m very interested to see what happens in the spring and early summer 2026 market. If momentum continues, we could see new pricing benchmarks established in Excelsior.
Final Thoughts
For decades, Excelsior quietly went about its business on the south side of Lake Minnetonka while neighboring markets like Wayzata captured most of the attention.
Today, that dynamic is beginning to change.
And if you’ve ever dreamed of owning a home in one of the most charming downtown lake communities in the Twin Cities, the window to carve out your own spot in the Village may not stay open forever.
Thinking About Buying or Selling a Luxury Home?
If you’re exploring Minnesota luxury homes, considering a move to Lake Minnetonka, or simply want to understand the evolving market, I’d be happy to share insight.
As a top luxury real estate agent in Minneapolis, I specialize in helping buyers and sellers navigate high-end properties throughout the Twin Cities — from historic lake towns to modern luxury builds.
📩 Connect with me here on LinkedIn or reach out directly to start the conversation.
The right property — and the right timing — can make all the difference.
