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Compass
401 Lake Street East, Unit 200
Wayzata, MN 55391
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Ulrich Real Estate Group
Excelsior, Minnesota is one of the most coveted lake towns in the Twin Cities metro — and one of the most misunderstood. It is not simply a "nice suburb near the lake." It is a one-square-mile city with a Victorian backbone, a fiercely protected historic identity, and a real estate market that operates by its own rules.
As of 2026, the median listing price sits at $1,685,000. Homes are averaging 46 days on market. And inventory, while higher than the record lows of the early 2020s, remains tight at around 93 active listings. If you are serious about buying here, you need to understand the market before you make a move.
This guide covers everything — neighborhoods, pricing, property types, financing, the buying process, and the questions buyers most often get wrong.
Wayzata, Shorewood, and Mound all share the Lake Minnetonka shoreline. Excelsior is not like any of them.
The distinction starts with The Commons — a 13-acre public park that sits at the foot of the downtown business district, giving every resident (and visitor) direct access to the lake. Most lake communities protect their best shoreline as private property. Excelsior built a public beach in the middle of it.
The city was founded in 1853 and has treated that history as a core part of its identity ever since. Water Street — the main commercial corridor — maintains its original grid layout. The Minnesota Streetcar Museum and the historic Steamboat Minnehaha are not tourist novelties; they are active parts of civic life. The Heritage Preservation Commission ensures the Victorian streetscape is not quietly eroded by modern redevelopment.
The result is a community that feels, as locals often describe it, like an "Old World Victorian" or "East Coast Seaport" town — more historic-bohemian than Wayzata's corporate-chic polish. It is also arguably the only Lake Minnetonka community where the entire city is walkable. From the furthest residential corner, you can reach the movie theater or the lake in under 15 minutes.
That said, "small-town" does not mean quiet. Excelsior is one of the densest cities in the metro during summer. Events like Apple Day, Art on the Lake, and Arctic Fever draw thousands of visitors into a one-square-mile footprint. Buyers looking for true suburban silence often find themselves happier across the border in Shorewood or Deepwood.
At a glance:
Because the city is so small, there are no formal neighborhood associations or large subdivisions. Instead, buyers and locals identify four distinct pockets, each with its own character, price range, and lifestyle tradeoffs.
Bounded roughly by Water Street, 3rd Street, and Lake Street, this is where Excelsior's Victorian character is most concentrated. Residents here have the most walkable lifestyle in the city — steps from The Commons, the library, and every major restaurant and boutique on Water Street.
The tradeoff is noise and foot traffic. During Apple Day or the Fourth of July fireworks, 10,000+ visitors descend on these streets. Many Village Core residents simply leave town during peak festivals.
Home styles: Original late-1800s Victorians, meticulously restored; luxury condos along Water Street; second-story apartments above retail. Price range: Condos from $600K; restored historic homes from $1.2M to $3M+.
Located west of 3rd Street toward the Shorewood border, this is the most traditionally residential part of the city. It has the highest concentration of single-family homes and sits within easy walking distance of Excelsior Elementary — making it the top destination for families with young children.
Much of the older housing stock here (1920s cottages and mid-century ramblers) is being scraped and replaced with large custom builds in the Modern Farmhouse or Coastal Shingle style.
Home styles: 1920s cottages and mid-century ramblers; an increasing number of new custom construction teardowns. Direct access to the Lake Minnetonka Regional Trail. Price range: Older cottages (rare) from $650K–$800K; new construction teardowns from $1.5M–$2.5M.
Buyer note: If you are looking at a West End home, check the basement carefully. The proximity to the lake and Galpin Lake means the water table can be high. Even a beautiful $2M home needs a solid water mitigation strategy.
Extending toward the Chanhassen border, this is the most affordable entry point into Excelsior — by Excelsior standards. The highway creates a psychological and physical separation from the lake, which keeps prices lower. The area is more heavily wooded and feels more secluded than the north side.
Home styles: 1950s–1970s split-levels and ramblers. Classic suburban aesthetic, less Victorian charm. Price range: $500K–$850K. Close to Minnetonka Middle School West and convenient for commuters heading toward Minneapolis.
The streets lining Lake Street and immediately adjacent to The Commons represent the most prestigious — and rarest — real estate in the city. Properties here almost never hit the open market. When they do, they move slowly and command prices that reflect their one-of-a-kind position.
Home styles: Architecturally significant estates with wrap-around porches, carriage houses, and premium landscaping. Your front yard is effectively The Commons. Price range: $3.5M to $8M+.
The market has shifted from the frenzied pace of 2021–2023 into what data now characterizes as a balanced environment — though "balanced" is relative when you are talking about a median listing price of $1,685,000.
Key market stats (April 2026):
The 100% sale-to-list ratio is telling. Bidding wars above asking price have cooled significantly, but sellers are not yet accepting lowball offers. Buyers now have room for inspections and due diligence — a luxury that was essentially gone 24 months ago — but realistic pricing is still expected.
Because Excelsior is essentially built out, "new construction" means something different here than in a typical suburb.
There are no large-scale tract developments in Excelsior. New construction is almost exclusively infill — builders purchase older lots, tear down the existing structure, and build custom homes on the footprint. Active builders in the market include Wooddale Builders, Price Homes, and Ador LLC, most active along the Excelsior Blvd corridor and the West End.
Recent examples include 254 Lake St (~$4.9M) and 163 2nd St (~$1.8M). Nearby BridgeVine, technically in Minnetonka/Shorewood, is the primary "new community" serving buyers who want the Excelsior lifestyle with a slightly larger lot.
High-end finishes dominate: white oak millwork, floor-to-ceiling glass, smart home systems, and 4,000+ sq. ft. footprints.
Restored Victorians in the Village Core are the crown jewel of the Excelsior market. They move more slowly due to their niche appeal and high price points, but they hold value exceptionally well precisely because the Heritage Preservation Commission (HPC) protects the aesthetic that makes them desirable in the first place.
What buyers must know about historic designation:
If a home is located within the Downtown Historic District or carries a Heritage Preservation Site designation, it comes with specific exterior restrictions. Before making any significant changes to the exterior — siding, windows, porches, additions — you must obtain an HPC Site Alteration Permit, separate from a standard building permit.
Interiors are generally not regulated. You can install a modern kitchen inside a 120-year-old Victorian without HPC involvement.
Demolition of a designated historic home is extremely difficult. Buyers seeking teardown lots must confirm the property is classified as "non-contributing" or falls outside the historic district.
The city also enforces "demolition by neglect" provisions. You are not required to restore a home to its 1890s condition, but you are required to maintain it structurally.
Luxury maintenance-free living near Water Street remains in high demand. Monthly HOA fees for downtown condos range from $500 to $1,200+, covering exterior maintenance, snow removal, landscaping, hazard insurance, and in many cases, secure heated underground parking — a real premium in a Minnesota winter. Smaller townhome developments in the South Heights or West End carry lower fees, typically $250–$450/month.
The purchase price is the starting point. Here is what to budget beyond it.
Buyer costs: 2%–6% of the purchase price. On a $1.68M home, that is $33,600–$100,800 in fees covering loan origination, title insurance, appraisals, and related charges.
Seller costs: 6%–10% of the sale price, driven primarily by agent commissions and the Minnesota State Deed Tax ($0.0033 of the net sale price).
Minnesota-specific transfer taxes (paid at closing):
Excelsior's property taxes reflect a "triple threat" of county, city, and school district levies. The effective tax rate is approximately 1.26% of the assessor's market value (Hennepin County Taxpayer Services, 2026 proposed rates).
In late 2025, the Hennepin County board adopted a 7.79% maximum levy increase for 2026. Combined with Minnetonka School District voter-approved levies, the per-household burden in Excelsior runs higher than in larger nearby cities like Minnetonka or Eden Prairie.
Estimate: On a $1.5M home, expect an annual property tax bill of $18,500–$20,000.
Important: Always check for Special Assessments. The city frequently updates historic infrastructure — sewers, streets — and passes costs directly to homeowners as a line item on property tax bills over 5–10 years.
Minnesota's increasing frequency of hail and convective storms has pushed premiums up across the board. Standard dwelling policies in the area run $2,400–$4,500+ annually. Given that most Excelsior homes exceed $1M in replacement cost, many buyers will require a High Value Home policy (carriers like Chubb or PURE), which typically starts at $5,000+ annually and includes guaranteed replacement cost and higher liability limits.
The jumbo rate is critical here. The conforming loan limit is $766,550. The majority of Excelsior transactions exceed this threshold, meaning most buyers are financing with jumbo products.
The Minnesota Housing Finance Agency (MHFA) offers several programs, but Excelsior's price points limit their applicability.
Not applicable. Excelsior is classified as part of the Minneapolis–St. Paul urbanized area and does not qualify for USDA Rural Development loans. The nearest eligible areas are further west, in parts of Watertown, Mayer, or southern Carver County.
For a market like Excelsior — with historic homes, high-value properties, and complex appraisals — local lenders consistently outperform national big-box banks.
A note on appraisals: If you are buying a historic home in the Village Core, insist on a local lender. National appraisers frequently struggle to accurately value 120-year-old Victorians, and a low appraisal can derail financing at the eleventh hour.
Minnesota is a full-disclosure state. Sellers are legally required to provide a written Seller's Property Disclosure Statement covering all material facts that could adversely affect a buyer's use or enjoyment of the property. This includes roof age, basement moisture history, known structural issues, and more.
Additional Minnesota-specific disclosures to know:
Expect 30–45 days from accepted offer to close on a financed purchase.
Can I list my home on Airbnb? Not easily. As of 2026, Excelsior's Short-Term Rental ordinances restrict STR activity in residential zones (R1 and R2) to primary residences only — meaning you must live there at least 183 days per year. Investment properties intended purely for short-term rental are generally restricted to the commercial downtown district.
Where do I keep my boat? This is the most common expectation gap for new Excelsior buyers. Most homes in the city do not come with a private dock unless they sit directly on the shoreline. The typical path is joining a multi-year waitlist for City Docks or securing a private slip at nearby marinas in Tonka Bay or Shorewood, which can cost several thousand dollars per season.
How disruptive are the events and festivals? If you live north of Highway 7, you will hear the Fourth of July fireworks, the Concerts at The Commons series, and the general activity along Water Street. Apple Day alone draws 10,000+ visitors. Many locals plan to be out of town during peak festival weekends.
Are historic homes really that restrictive? The HPC governs the exterior only. You can renovate the interior — kitchen, baths, systems — without their involvement. The "money pit" reputation typically stems from deferred maintenance on 19th-century foundations, not the designation itself. And importantly, the historic protections that limit what you can do also protect your investment by ensuring your neighbors can't undermine the character that makes the neighborhood valuable.
Will I save on taxes because the city is small? The opposite is often true. Excelsior delivers high-end amenities — The Commons, a public beach, a library, major annual events — funded by a very small residential tax base. The per-household burden tends to run higher than in larger nearby cities like Minnetonka or Eden Prairie.
Excelsior is not a market where a generalist agent adds full value. The combination of historic designation rules, jumbo financing nuances, creative 1850s-era property lines, limited comps, and neighborhood-level pricing differences creates a transaction environment that rewards deep local knowledge.
Beth Ulrich of Ulrich Real Estate Group has been working in the Lake Minnetonka luxury market since 1993. She has sold over $100M in west metro real estate across a four-year stretch alone, including serving as the exclusive sales agent for two luxury condominium developments in downtown Wayzata — 58 units at The Regatta ($70M in 18 months) and 20 units at The Landing ($33M in nine months). She is also a certified relocation specialist with specific expertise in upper-bracket homes, historic properties, and buyers navigating life transitions.
Her team is based at 401 Lake Street East, Unit 200, Wayzata, MN 55391.
Ready to explore Excelsior? Contact Beth Ulrich at (612) 964-7184 or [email protected] — or view current Excelsior listings here.
Compass
401 Lake Street East, Unit 200
Wayzata, MN 55391
Ulrich Real Estate Group