Thinking about buying or selling a home in the Minneapolis area in 2025? If so, you're probably wondering what the market has in store for us. Based on the latest data it looks like the Minneapolis housing market in 2025 is shaping up to be a mixed bag, with slight price increases and more homes hitting the market, but a dip in sales. Let me tell you, as someone who's been keeping a close eye on real estate trends here, this is an interesting shift to watch.
It’s easy to get caught up in the headlines, but digging into the actual numbers gives us a much clearer picture. I’ve been following these reports closely, and July 2025 data for the 16-county Twin Cities region offers some key insights. We're seeing a noticeable uptick in new listings, which is great news for buyers tired of the limited choices.
However, closed sales are actually down a bit. This might sound a little confusing at first, but it often means that while more homes are available, they might be taking a bit longer to sell or perhaps the types of homes available aren't a perfect match for everyone right now.
MINNEAPOLIS HOUSING MARKET 2025: What to Expect as Summer Heats Up
Let's break down what the Minneapolis Area Realtors® data for July 2025 is telling us compared to July 2024 across the 16-county Twin Cities region:
Looking at the rolling 12-month data gives us a broader perspective beyond just July. These figures smooth out any month-to-month fluctuations and show us the general direction the Minneapolis housing market is heading.
Metric | July 2024 | July 2025 | Change (July 2024 vs. July 2025) | Rolling 12 M s 2024 | Rolling 12 M s 2025 | Change (12 Mos) |
New Listings | 6,399 | 6,770 | +5.8% | 63,488 | 66,484 | +4.7% |
Closed Sales | 4,589 | 4,510 | -1.7% | 45,208 | 45,645 | +1.0% |
Median Sales Price | $385,000 | $395,000 | +2.6% | $375,000 | $386,000 | +2.9% |
Average Sales Price | $460,612 | $473,376 | +2.8% | $443,394 | $460,318 | +3.8% |
Price Per Square Foot | $215 | $217 | +0.8% | $210 | $213 | +1.9% |
% of Original List Price | 99.5% | 99.3% | -0.2% | 98.9% | 98.7% | -0.2% |
Days on Market Until Sale | 36 | 40 | +11.1% | 42 | 48 | +14.3% |
Inventory of Homes | 10,017 | 10,195 | +1.8% | — | — | — |
Months Supply of Inventory | 2.7 | 2.7 | 0.0% | — | — | — |
The rolling 12-month numbers show a similar story: an increase in new listings and a slight uptick in closed sales over the longer term, indicating a more consistent supply. Median and average sales prices continue their upward trend, suggesting that even with more homes available, demand is still strong enough to support modest price growth. The fact that homes are taking longer to sell, both in July and over the past year, is a key indicator that the market is becoming more balanced. This is a good thing for both buyers and sellers. Buyers have more options and a little less pressure, while sellers might need to be more strategic with their pricing and presentation.
From my perspective, the MINNEAPOLIS HOUSING MARKET 2025 is moving towards a more sustainable and less frenzied pace than we've seen in some of the peak years. The increase in new listings is a breath of fresh air for many potential buyers who have struggled with limited inventory. It means you might finally be able to find that perfect place without facing dozens of other offers.
However, don't mistake more choice for a buyer's free-for-all. The median sales price is still climbing, albeit at a more measured pace. This suggests that well-priced and desirable homes will still attract multiple offers, but overall, competition might be less intense. The increase in days on market is a crucial piece of data for both sides.
It's also worth noting that while the overall numbers paint a picture of the region, specific neighborhoods within the Twin Cities will have their own unique trends. Some areas might be experiencing faster growth or slower sales than the average. That's where working with a knowledgeable local real estate agent becomes invaluable. They can provide hyper-local insights that generalize data just can't capture.
The Minneapolis housing market in 2025 isn't signaling a crash; rather, it's showing signs of maturation and a return to more predictable patterns. It’s shaping up to be a market where smart decisions, careful planning, and a realistic understanding of current conditions will lead to success for both those looking to buy and those looking to sell.
Minneapolis Housing Market Forecast 2025-2026
It’s a natural question to wonder what’s next for the Minneapolis housing market forecast. Well, based on the latest information I’ve gathered, it looks like things are pretty steady right now, with average home values around $390,235 in the Minneapolis-St. Paul-Bloomington area and homes are selling quickly, often going pending in just 18 days. While we've seen a modest 1.6% increase in value over the past year, the prediction leans towards slight growth early on, potentially followed by a small dip later next year. It's not a crystal ball, but it gives us a good picture!
As someone who keeps a close eye on our local real estate scene, I know how important it is to understand these trends. Let’s break down what the experts are saying and what it could mean for you.
Zillow recently shared some predictions (their MSA – Metropolitan Statistical Area – forecast) that give us specific milestones to look at. Remember, these are percentages indicating predicted price changes:
From my perspective, these numbers suggest a market that might start strong but could face slight downward pressure as we head into the second half of 2026. This could be influenced by various factors, including mortgage rates and overall economic conditions. A 1.5% dip isn't a crash, but it’s a noticeable change from the consistent growth we often see.
It’s always interesting to see how our area compares to others in Minnesota. Based on the data I have, here’s a look at the Minneapolis Housing Market Forecast compared to other regions:
City/Region | Aug 2025 Price Change % | Oct 2025 Price Change % | Jul 2026 Price Change % |
Minneapolis, MN | 0.2% | 0.2% | -1.5% |
Duluth, MN | 0.4% | 0.5% | 0.7% |
Rochester, MN | 0.3% | 0.3% | -0.4% |
St. Cloud, MN | 0.2% | 0.3% | 0.6% |
Mankato, MN | 0.4% | 0.7% | 0.4% |
Brainerd, MN | 0.2% | 0.4% | 1.6% |
Faribault, MN | 0.3% | 0.5% | 0% |
Looking at this table, Minneapolis seems to have a similar pattern to Rochester, showing slight early stability followed by a predicted small decline. Other areas like Duluth and Mankato show more consistent positive predictions through mid-2026, while Brainerd is predicted to see stronger growth by mid-2026. It seems Minneapolis might be leading a slight cooling trend compared to some other parts of the state.
Nationwide, the outlook from Lawrence Yun, the Chief Economist at the National Association of Realtors (NAR), is quite positive. He anticipates:
This national optimism contrasts a bit with the slightly negative forecast for Minneapolis by mid-2026. It suggests that while the US market might see overall price appreciation, local markets like ours could experience fluctuations. The expected drop in mortgage rates nationally is key; if that happens, it could certainly impact Minneapolis positively, potentially softening that predicted dip.
Based on the data, I personally don’t see evidence pointing towards a crash in the Minneapolis market. A predicted drop of -1.5% by mid-2026 is a leveling off or a slight pullback, not a collapse. Crashes typically happen when there's a significant imbalance, like massively high inventory or widespread economic hardship leading to forced sales. The national trends suggest recovery and moderate growth, supported by potentially lower mortgage rates and increased sales volume. While Minneapolis might see a minor price correction, it appears more like a return to more normal market conditions rather than a dramatic downturn.
So, what’s my final thought on the Minneapolis housing market forecast for 2026? I think we'll likely see a market that’s more balanced than the frenzy of previous years. Buyers might have a bit more breathing room, especially if mortgage rates continue to fall nationally. Sellers might need to be realistic about pricing, but homes selling in just 18 days suggests demand is still solid. The slight dip predicted for mid-2026 could present opportunities for buyers who were previously priced out. Overall, steady seems to be the keyword, with potential for gentle adjustments rather than major shocks.
Should You Invest in the Minneapolis Real Estate Market?
Minneapolis, located in the state of Minnesota, is a major economic hub in the Midwest region of the United States. The city has a diverse economy with major industries including healthcare, finance, and manufacturing. With a population of over 400,000 and a metro population of over 3.6 million, Minneapolis has a strong demand for housing. If you are considering investing in real estate, here are 5 reasons why Minneapolis might be a good place to invest:
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