Twin Cities Real Estate Market Update: Q1 2025 Report
Posted on April 07, 2025 by Travis Anderson
Hey everyone! Welcome to my Twin Cities 2025 First Quarter Real Estate Market Update. I’m Travis Anderson, your local real estate expert, here to break down the latest trends in the Twin Cities housing market. Let’s dive into the numbers and see what’s happening in Q1 2025.
Home Sales and Price Trends
So far in the first quarter, we’ve seen 8,121 home sales across the Twin Cities. That’s a slight dip of 1% compared to last year. However, the average home price has climbed to $443,715—a solid 6% increase year over year. This shows that while fewer homes are selling, demand is still pushing prices upward.
Days on Market
The average time to sell a home is currently 64 days, which includes inspection contingencies. Without those, you’re probably looking at around 55-57 days. That’s up 12% from last year, indicating a slight cooling in pace. But don’t let the average fool you—hot areas like Eagan (think a $500,000 home) or Highland Park are still moving fast. Listings in these neighborhoods are selling like hotcakes, often in far less than 64 days.
Showing Activity
Showings are down year over year, with an average of 15 showings needed to sell a home. In my experience, offers typically come in between 8 and 12 showings. So, if a home hits 16 showings, we’re often on the cusp of seeing a second offer. When showings climb to 20 or 30, you’re likely looking at multiple offers—two, three, or even more. The market still has solid activity to get homes sold, and in many cases, we’re generating that competitive edge.
Market Saturation: Supply vs. Demand
Let’s talk saturation—how supply stacks up against demand. The number of listings in Q1 2025 is up 3.5% year over year, but sales have dropped 1.7%. Combine those, and you’ve got a 5.1% gap, meaning the total market has declined by about 5% compared to last year. This shift suggests a bit more inventory is sitting on the market, but demand hasn’t kept pace.
The Average Twin Cities Home
What does the typical Twin Cities home look like in Q1 2025? It’s about 2,100 square feet, priced at $443,000, with four bedrooms and two bathrooms. That’s your benchmark for the region right now.
Local Market Updates
For more granular insights, I’ve been posting quick city-specific updates—think Rosemont, Eagan, Inver Grove Heights, most of Dakota County, and parts of Ramsey and Washington Counties. These are short, under-a-minute reads or videos tailored to those markets. Keep an eye out for more of those!
Coming Soon: Affordability Series
Here’s the big news: next week, from Tuesday through Friday, I’m launching a series on affordability in the Twin Cities. I hear it all the time—“I’m waiting for the crash,” “Prices will drop,” or “Interest rates are going up.” The best way to cut through the noise? The affordability index. We’ll dive deep into Minnesota’s numbers and answer the big question: Are home prices likely to come down in the next couple of years? This series will give you the data to make an educated decision. Don’t miss it!
Wrapping Up
That’s your quick Twin Cities Real Estate Market Update for Q1 2025. Thanks for reading—I hope this helps you navigate the market, whether you’re buying, selling, or just keeping tabs. Stay tuned for the affordability series next week, and as always, all my best to you and yours!
Have questions? Drop them in the comments or reach out directly!