Minnesota
Housing Market

Name: Minnesota Housing Market - Price Trend Analysis
Creator: Houzeo
License: https://www.houzeo.com/terms-of-use/

Minnesota's real estate market works in favor of buyers right now. This provides buyers stronger negotiating positions. With a 1.7 months of supply and homes averaging 53 days on market, buyers have ample time to make decisions and secure better deals.

Minnesota Housing Market Forecast 2026

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Minnesota Housing Market Overview

Looking to buy property in Minnesota? Current conditions support your position. The median sale price stands at $335,000 (a 4.7% increase from last year), but the market momentum tells the real story. Properties stay listed for 53 days on the market, inventory spans 1.7 months of supply, and homes sold up 2% compared to last year. Approximately 9,725 Minnesota homes were sold last month. These factors provide excellent opportunities for buyers to negotiate favorable terms and lock in advantageous prices.

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Minnesota Housing Market Forecast for 2026

Minnesota's housing market is expected to transition toward more balanced conditions in 2026, supported by easing mortgage rates and modest inventory improvements that create better opportunities for buyers.

Market Outlook:

Home prices expected to rise modestly by 2-4%, reflecting sustainable growth
Inventory levels forecast to increase 5-10%, expanding buyer selection
Wage growth outpacing home price appreciation strengthens long-term affordability

Will the Minnesota Housing Market Crash in 2026?

Expert consensus points to no. Minnesota benefits from strong market fundamentals, including substantial homeowner equity and disciplined lending standards that prevent distressed sales. Present circumstances represent gradual market normalization following years of constrained inventory and rapid price growth, not crash conditions. The market is rebalancing from seller-dominated dynamics to a more neutral environment where buyers gain negotiating leverage while sellers maintain pricing power. Buyers should anticipate improved selection and negotiating scenarios through 2026 as the market finds equilibrium.

UnlikelyCrash MeterLikely

Current Market Indicators

Days on Market:
53 days
Months of Supply:
1.7 months
Sale-to-List Ratio:
99.2%
Mortgage Rates:
Currently- 6.23% projected to hover between 6.0% and 6.8%

Minnesota Housing Supply

Minnesota's inventory continues benefiting buyers. With 16,733 homes currently listed as of last month, the significant factor is expanding availability. Inventory grown 16.9% year-over-year, months of supply extended to 1.7 from 1.5 previously, and 5,758 additional properties hit the market this month (a 1% up). This growing inventory offers buyers a broader selection and enhanced bargaining strength. For sellers, this is the time to list your home on MLS in Minnesota now, before more competition enters an already crowded marketplace.

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Minnesota Housing Demand

Minnesota's purchase activity indicates a buyer-advantaged environment. With the sale-to-list price ratio at 99.2% last month, the crucial signal is diminished seller pricing authority. Just 32.5% of properties sold over asking price (down from 32.8% last year), the sale-to-list ratio held steady 0.1% annually, and Minnesota homes with price reductions increased from 42.5% to 45.6%. These numbers verify that buyers command the market while sellers must price attractively to generate interest.

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Minneapolis Housing Market

Frequently Asked Questions

How have home prices changed in Minnesota over the past year?

Minnesota's median home price is currently $335,000, with a 4.7% year-over-year increase. You can check your home's fair market value with our free home value estimator to compare prices in your neighborhood and know where you stand.

Are home prices dropping in Minnesota?

Currently, home prices are stable with localized variations across different counties and cities. Experts forecast growth in Minnesota home prices through 2025-26, although increased inventory may moderate prices in overvalued areas.

What's the average price for a house in Minnesota?

The average cost of a home in Minnesota typically ranges from $210,000 for condos to $360,000 for single-family homes, depending on location, size, and market conditions.

What are the Minnesota housing market predictions in 2025 and beyond?

The housing market in Minnesota is expected to stabilize in 2025, alongside rising mortgage rates. Our housing market predictions suggest that the supply of Minnesota houses should increase enough to stabilize price growth.

What is a good time to buy a home in Minnesota?

Typically, from August to December is the best time to buy when supply is high and demand is low. You must check the current market trends in home prices and inventory in Minnesota. If mortgage rates are stable, the median market time is more than 70 days, with more than 5 months of supply, it's the best time to buy a house in Minnesota.

What are the steps to buying houses in Minnesota?

As a buyer, you should keep an eye on price changes and inventory levels. If you're buying a house in Minnesota, you should get a mortgage pre-approval and budget for a down payment of at least 10%.

How can I list my home for sale in Minnesota?

You can list your home for sale with a Flat Fee MLS Minnesota listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀

What is the average mortgage rate for buyers in Minnesota?

The average mortgage rate for buyers in the Minnesota real estate market fluctuates between 6% to 8%. Always check your credit score and current mortgage rates with lenders before you apply.

When will the housing market crash in Minnesota?

A Minnesota housing market crash is not likely in 2025 and 2026. Home prices are not dropping suddenly and remain 80% above pre-COVID levels, with sustained growth projected through 2025. You should keep an eye on Minnesota housing market predictions before you invest.

Important Legal Disclosures

*Based on Houzeo calculations of home data from MLS and/or public records.

“The market analysis provided on this page is for informational purposes only and does not constitute financial, investment, or legal advice. Data is sourced from public records, industry reports, and third-party providers, and while Houzeo strives for accuracy, we make no guarantees regarding the completeness, accuracy, or timeliness of the information presented.

All estimates, projections, and historical data are based on statistical models and should not be relied upon as predictions of future market conditions. Past performance is not indicative of future results, and real estate market conditions may change due to various economic and regulatory factors.
Users are responsible for conducting their own due diligence before making any real estate or financial decisions. Houzeo is not liable for any decisions or actions taken based on the information provided. Any unauthorized use, duplication, or distribution of the data may violate copyright laws and result in legal consequences. Certain information, tools and services on this page may be powered by third-party vendors. Houzeo does not control or guarantee the accuracy, reliability, or functionality of such third-party services.