As summer winds down, the Twin Cities real estate market is showing its typical seasonal slowdown—but there are still some important trends that buyers and sellers in Minnesota should pay attention to. Here’s a breakdown of where things stand as of August 2025.

📊 Twin Cities Home Prices

  • Median Home Price: $400,000

  • Average Home Price: $476,186 (up 0.9% compared to last year)

Prices are holding steady, which means sellers continue to benefit from strong values, while buyers aren’t facing the dramatic price hikes of previous years.

🏡 Inventory & Days on Market

  • Months Supply of Inventory: 2.6 months

  • Average Days on Market: 42 (closer to 35 before inspection contingencies)

With less than three months of inventory, the Twin Cities housing market remains a seller’s market. However, homes are taking a little longer to sell than they did earlier this year, giving buyers slightly more breathing room.

📈 Sales Activity

  • Closed Sales: Down 6.3% year-over-year

  • Pending Sales: Up 1.9%

  • New Listings: Down 6.0%

Seasonality is clearly at play. Pending sales peaked in June at 4,707, dipped to 4,404 in July, and slipped again to 4,135 in August. Historically, activity bottoms out around December 31st, before rebounding in the spring.

🤝 Negotiation Trends

Homes priced correctly are still selling at or near asking price. That said, August brought a little more flexibility—buyers had slightly more room to negotiate compared to the competitive spring market.

⚠️ Foreclosures in Minnesota

In August, 108 foreclosures hit the Twin Cities market. For over a year now, we’ve been hovering around 100 per month, signaling consistency but also providing opportunities for investors and buyers looking for value.

💰 Mortgage Rates Update

Rates remain a hot topic:

  • Early August: 6.87%

  • End of August: 6.625%

  • Some buyers secured closer to 6.5%, and in one case, even bought the rate down to 4.5%.

For buyers, this shows the importance of exploring rate-buy down strategies and working with a knowledgeable lender.

🔎 Key Takeaways for Buyers & Sellers

For Sellers:

  • Pricing is critical—homes priced right are moving.

  • Inventory is still tight, which works in your favor.

  • Expect slightly more negotiation compared to spring.

For Buyers:

  • More time to shop compared to earlier in the year.

  • Opportunities for negotiation and seller concessions.

  • Mortgage rates are trending downward, with creative financing options available.

📍 Final Thoughts

The Twin Cities housing market in August 2025 is stable, slightly cooling with seasonal trends, and offering opportunities for both buyers and sellers. If you’re considering a move, now is the time to start planning your strategy for the fall market.

 

👉 Have questions about buying or selling in Minnesota?
Visit searchminhomes.com or reach out directly—I’d love to help you navigate today’s market.