As we head into the fourth quarter of 2025, many people are asking: What’s going on in the Twin Cities real estate market? The last 30 days have provided a lot of insight into where prices, inventory, and demand are heading. Here’s your September 2025 market update for Minnesota and Western Wisconsin.

📊 Home Prices Hold Steady

The median home price in the Twin Cities sits at $390,000, while the average sales price is $462,000, up 3.7% year over year. While it’s not a double-digit increase, these numbers show that prices remain steady even as the market moves into its seasonal slowdown.

🏘 Inventory Levels & Market Balance

Months supply of inventory is at 2.5 months, meaning that if no new homes were listed, it would take less than three months to sell everything currently on the market. For context, a balanced market typically sits at four to five months of inventory — so the Twin Cities is still leaning toward a seller’s market.

⏳ Days on Market & Sales Trends

The average days on market for September was 48 days, but that figure includes inspection contingencies. In reality, most homes are selling within 35–40 days.

Other important year-over-year trends:

  • Closed sales: up 3.4%

  • Pending sales: up 4.1%

  • New listings: up 4.6%

Seasonality is clearly at play. Pending sales peaked at 4,700 in June — as they do most years — and dropped to 3,900 in September. Interestingly, new listings, which bottomed out in 2023, have been climbing since.

💰 Price Reductions & Off-Market Activity

Even though homes priced correctly are still selling for 100% of the asking price, there have been more price reductions than in previous months — 1,900 price reductions in the last seven days alone. In the same period, we saw 2,100 new listings but only 1,400 homes sold.

Additionally, 3,100 homes came off the market in September due to cancellations or expirations. Combined, these numbers show that while supply and demand remain balanced enough to hold prices steady, buyers are gaining slightly more leverage.

📉 Mortgage Rates Hit 12-Month Low

Mortgage rates have dipped below 6.5%, their lowest level in more than a year. Some buyers are even locking in rates as low as 6% with additional cash at closing. It’s a helpful reminder that mortgage rates aren’t directly tied to the Fed’s rate — something I explain further in this video linked in the description.

📝 The Bottom Line

  • Prices are steady but rising modestly compared to last year.

  • Inventory remains tight, though new listings are increasing.

  • Sales are slowing seasonally, which is typical for this time of year.

  • Rates are down, giving buyers a bit more flexibility and leverage.

If you’re considering selling, low inventory still makes this a great time to list. If you’re buying, you may find more choices and negotiation opportunities this fall.

🤝 Work With a Local Expert

I’m Travis Anderson, a local Realtor serving the Twin Cities and Western Wisconsin. Whether you’re thinking about buying or selling, I’d be happy to help you navigate the current market.

 

📱 Call/Text: [Your Phone Number]
🌐 Visit: searchminhomes.com
💬 Drop your questions in the comments below or send me a message.