The Twin Cities housing market finished 2025 with some major changes that are now shaping what buyers and sellers will experience in 2026. While home prices continued to rise, sales activity slowed and inventory began shifting toward a more balanced market in many neighborhoods.
Here’s what the data really means for anyone thinking about buying or selling a home in Minnesota this year.
Twin Cities Home Prices Continue to Rise
The median home price in the Twin Cities ended 2025 at $390,000, which represents a 2.6% increase year over year. That’s slower than the 4% annual growth many economists target, but it still shows strong long-term demand for housing across the metro.
What this tells us is that even with higher interest rates and affordability pressure, home values are holding and still climbing. For homeowners, this means equity is still growing. For buyers, it means waiting for a price collapse likely isn’t realistic.
Homes Are Taking Longer to Sell
While prices rose, the average days on market increased to 49 days, up about 10% from the year before. This signals that buyers are being more selective and taking more time before making decisions.
Some cities and price ranges are still seeing homes sell quickly, especially updated and well-priced homes. But on average, the Twin Cities is no longer a rapid-fire seller’s market.
Inventory Is Rising in Many Areas
The months’ supply of inventory for the Twin Cities finished 2025 at 2.5 months, which still technically favors sellers. However, many local neighborhoods are now seeing five to six months of inventory, which is considered a balanced or buyer-leaning market.
This is a big shift from the hyper-competitive conditions of 2020–2022 and gives buyers more leverage and more choices.
Sales Activity Slowed Dramatically
In 2025, the Twin Cities recorded about 46,000 home sales, which is well below the 10-year average of roughly 60,000 sales per year. That’s a significant slowdown and reflects how higher interest rates and affordability challenges have reduced overall demand.
Fewer buyers means more competition among sellers — and strategy matters more than ever.
Only 68% of Homes Sold in 2025
One of the most telling stats from last year is the percent chance of selling. In 2025, only 68% of homes that were listed actually sold. That means 32% of listings expired or were canceled.
This highlights how important pricing, presentation, and marketing have become. Simply putting a home on the market is no longer enough — especially in neighborhoods with rising inventory.
What This Means for 2026 Buyers and Sellers
For buyers, 2026 is offering more choices, less competition, and more room to negotiate — especially in areas with higher inventory.
For sellers, the market is still strong, but it’s no longer forgiving. Homes that are priced right and prepared properly continue to sell. Homes that are not will sit, reduce, or expire.
If you’re thinking about buying or selling in Eagan, Apple Valley, Rosemount, Inver Grove Heights, Woodbury, Lakeville, Stillwater, or anywhere in the Twin Cities, understanding your specific neighborhood’s inventory and demand is critical.