Arden Hills: Suddenly in demand

Arden Hills, a quiet suburb along the eastern fringe of the metro, had the third-biggest gain in the median sale price over peak last year in the metro, due in large part to good schools, proximity to Interstates 35W and 694 and a flurry of new construction in a small in-fill development.

David Vanneste, an agent with Edina Realty who specializes in Arden Hills and surrounding suburbs, said the area has been particularly popular with move-up buyers who want a new house in an established suburb. Last year, Pulte Homes opened a small subdivision, and all 43 lots sold out, with most of the houses that were built selling for more than $500,000. "This is the first time we've had new lots open up," Vanneste said. "There's pent-up demand for new construction in this area."

While those sales caused a statistical shift in the median price, they also reflected deep demand for housing in the area because of few options for buyers and growing demand to live within the Mounds View school district.

The city is poised for more big changes. Environmental cleanup is being done at the Army ammo plant property, which will create space for hundreds of new home sites in coming years.