If you’ve been following national real estate headlines, you might think the housing market is either slowing to a crawl or on the brink of collapse. But here in Minneapolis–St. Paul, that narrative doesn’t quite fit.
Economists that look at real estate markets nationwide agree!
What we’re experiencing right now isn’t a boom or a bust. It’s something we haven’t seen in years: a more normal housing market. And when you zoom out and look at the bigger picture, that normalcy may actually set Minneapolis up for a strong 2026.
What the Minneapolis Housing Market Looks Like Right Now
This past year has been brisk—but not chaotic. Homes aren’t selling in minutes anymore, and that’s an important shift.
The average home is spending about 39 days on the market. This is consistent with past years.
Interest rates have largely held steady in the mid-6% range for 30-year fixed mortgages
Buyers have more breathing room, and sellers are still seeing solid demand
When you compare today’s market to the frenzy of 2020–2022, it feels very different. But when you compare it to 2019, it starts to look familiar. Balanced. Measured. Functional.
That’s not a bad thing.
Why Minneapolis Keeps Ranking as a Top Growth Market
Despite higher interest rates and a slower pace, Minneapolis continues to show up on top 5 growth market lists from major real estate organizations like Zillow, Redfin, and the National Association of Realtors.
So why does this metro keep punching above its weight?
1. Relative Affordability for a Major Metro
For a city of this size, Minneapolis remains comparatively affordable. We offer strong job markets, respected healthcare systems, major universities, and vibrant arts and cultural amenities—without the price tags seen in many coastal cities.
That affordability continues to attract buyers from higher-cost regions of the country.
2. Climate Stability Is Becoming a Housing Factor
While not always part of traditional real estate conversations, climate resilience is increasingly influencing long-term housing demand.
The Upper Midwest is more insulated from many of the climate-related disasters impacting other parts of the U.S., and that stability is quietly shaping migration patterns. Over time, this contributes to sustained housing demand.
3. Ongoing Housing Shortages
Housing inventory remains tight—and there’s little indication that this will change quickly.
New construction remains expensive
Building material costs continue to be impacted by tariffs
Labor shortages are worsening due to immigration crackdowns that reduce the availability of skilled workers on job sites
Fewer homes being built means continued pressure on prices, even in a calmer market.
What to Watch Heading Into 2026
No market is without risk, and it’s important to stay realistic.
Employment trends matter, and national unemployment rates have been increasing. A weakening job market can always influence buyer confidence. That said, real estate is deeply local.
We remain below national rates!
When you look specifically at Minneapolis and the broader Upper Midwest, the fundamentals remain strong: stable demand, limited supply, relative affordability, and long-term desirability.
Why a “Normal” Market Is Actually Good News
This isn’t the frenzy of 2021, and it isn’t a market falling apart either.
It’s a steadier environment where:
Buyers can make thoughtful decisions
Sellers still benefit from constrained inventory
Pricing is supported by fundamentals rather than hype
For people who understand the local market, this kind of balance can be incredibly healthy—especially as we look toward 2026.
Final Thoughts
If you’re buying, selling, or considering a move to Minneapolis, understanding local conditions matters far more than national headlines. The Twin Cities market continues to show resilience, stability, and long-term promise—even as other regions experience very different outcomes.
As always, all real estate is local. And right now, Minneapolis is quietly—and confidently—holding its ground.
More Homes. Less Pressure. But Still a Seller’s Market?
If you’ve been watching the Minneapolis housing market over the past few years, you might be wondering: is this finally the shift we’ve been waiting for? In short — kind of!
Here’s what I’m seeing on the ground (and in the numbers) right now as of July 2025.
📈 Inventory Is Rising — and That Matters
We’ve seen a 31% increase in listings since the start of the year, and there are now about 7,300 active listings in the 7-county Twin Cities metro. That’s nearly 1,000 more homes than this time last year.
More homes on the market means more choices — and a little less panic — for buyers.
Almost every county is now over 2 months of housing supply:
Anoka and Ramsey Counties are still under 2 months.
Carver County is leading the pack at nearly 3 months.
📊 Quick Inventory Refresher:
0–5 months = Seller’s market
5–6 months = Balanced market
6+ months = Buyer’s market
So yes, we’re still in a seller’s market technically… but emotionally, it feels like a big relief for buyers compared to the frenzied pace of the past few years.
🧭 Buyer Experience: More Room to Breathe
If you’re coming from out of state — especially places where homes are lingering on the market or negotiation cycles are long — the Twin Cities might feel strange.
We still see multiple offers. Especially for homes that are:
Closer to the city
Priced right
In “1 out of 10” condition (mint and move-in ready)
Those homes? They’re flying. Still. But listings that need a little TLC, staging, or smart pricing? Buyers are negotiating, and sellers are making concessions.
💡 What Accepted Offers Are Looking Like Right Now
The transaction coordination team I use (Home Free TC) provided a quick market snapshot based on 47 accepted offers between July 1–11, 2025. It’s a small sample, but all from busy, high-volume agents:
15% of buyers waived inspections (that’s way down from the last few years)
21% were cash offers, 70% conventional financing
Median sale-to-list price: 100%
28% of offers included seller-paid closing costs
Only 4% used escalation clauses, and just 8% included appraisal gap coverage
Home warranties included in 11% of deals
Cancellation rate: 2%
Takeaway? The market is calmer. Strategic. Thoughtful. But good homes still move fast.
🏠 How Property Types Are Trending
🔹 Single-Family Homes:
Median price: $415,000
YOY increase: +3.8%
Median days on market: 14 (including inspection!) Most homes go under contract within the first week.
🔹 New Construction:
Median price: $595,000
YOY increase: +4.9% There’s more supply than demand here, which means more negotiating power for buyers. A great opportunity right now.
🔹 Condos:
Median price: Just over $200K
Flat pricing, and days on market are increasing. Supply > demand = slower sales.
🔹 Townhomes:
Median price: $310,000
Median days on market: 30 Townhome prices are holding steady, but longer market times are giving buyers a bit more wiggle room.
💬 So… Is It a Buyer’s Market Yet?
Not quite — but we’re headed in that direction, and it feels a whole lot better for buyers than it did even a year ago.
If you’re thinking about buying, there are real opportunities right now. If you’re selling, presentation and pricing matter more than ever — but you still hold strong ground.
🤝 Want Help Navigating This Market?
Whether you’re relocating, downsizing, upsizing, or just exploring options — I’m here to help. I’ve worked with clients all across the country and love helping people figure out whether Minnesota is their next home.
📩 Feel free to reach out — mschumann@kw.com or call / text 773-791-2015
I just did a video that gives real life examples of what is happening in the 7 county metro Twin Cities housing market right now and wanted to share it with you. Things have changed QUICKLY!
Let me know if you have questions about the market or how to WIN in this market. The pandemic was a good boot camp for agents that made it through!
And if thinking twice doesn’t do it, think a few more times—because you may be buying a house you’ll be stuck with for a LONG time.
I’m Mary Schumann, a realtor in the Minneapolis area. I help a LOT of buyers find the right home here. I’ve seen horror stories, analyzed inspection reports, and run the data on enough houses to confidently tell you to stay away from the following types of homes. Some of these tips may seem like common sense, but circumstances can sometimes push buyers to overlook red flags. Don’t be that buyer!
1. Homes With Obvious Flaws or Hazards
If a home has an obvious flaw that can’t be fixed—STOP and reconsider. Examples include:
Located on a busy street
Backing up to a railway
Next to a run-down mobile home park
The number one rule in real estate is location, location, location. If you buy in a noisy or undesirable area, you’ll limit your resale options significantly. Busy streets, railways, and unattractive neighbors often scare off buyers with kids or pets.
Pro Tip: It’s often better to buy the worst home in the best neighborhood than the best home in a questionable location.
2. Homes Without Basements
In Minnesota, basements are essential. We get tornadoes here, and having a safe place to go during severe weather is key. Basements also provide:
Extra storage
Space for a family room or workout area
Most buyers expect a basement, so skipping one could hurt your property value.
3. Homes With Water Problems
Watch out for homes at the bottom of a slope or in flood zones. These can lead to:
Damp basements
Water damage and mold
Look for signs of water staining or dampness, and make sure the home has a sump pump—a good sign the seller has mitigated any water issues.
Flood Zones Tip: Minnesota does well with water management, but always check flood maps if you’re near rivers or creeks.
4. Homes With Steep or Long Driveways
Minnesota winters mean snow and ice—and neither is fun on a steep or long driveway. Problems include:
Cars getting stuck or scraping low-clearance vehicles
Slipping on ice when walking up or down
Sunlight Tip: Driveways facing south or west get more sun, which helps melt ice and snow faster.
5. Poor-Quality New Construction Homes
Don’t get distracted by fancy finishes like granite countertops. Instead, focus on:
Durability of floors and carpet padding
High-quality mechanicals (furnace, AC, etc.)
Reputable builders with strong reviews
Minnesota has a 1-2-10 warranty on new construction:
1 year: Full coverage
2 years: Mechanical systems
10 years: Structural defects
Get a home inspection in the 11th month of your warranty to catch issues early.
6. Older Homes With Bad Roofs
Insurance companies may refuse coverage if a roof is in poor condition. Always check roof age and quality before buying an older home.
7. Homes at Dangerous Intersections or Curves
Avoid homes on T-intersections or tight curves. These locations often:
Attract traffic accidents
Shine headlights into your windows at night
8. Homes With HOA Restrictions
While Minnesota’s HOA rules are often less strict than other states, review them carefully. Minnesota law gives buyers a 10-day review period for HOA documents, including:
Rules and regulations
Budgets and expenditures
You can cancel your offer and get your earnest money refunded during this period if you don’t like what you see.
Final Advice: Don’t Skip Inspections
Yes, inspections are expensive, but they can save you from making costly mistakes. A high-quality inspector can uncover issues you may not be able to negotiate or fix later.
Work With a Realtor Who Tells It Like It Is
Thinking about buying a home? Find an agent who gives you honest guidance. My role is to arm you with the information you need to make smart decisions.
If you have questions, reach out! I love hearing from people who find me on online or on YouTube.
What is happening in the Minneapolis area real estate market? I’ve been following several metrics over the past few years and there are a few that really stand out to me as indicative of how the market is doing, not just PRICE but what kinds of terms are included in winning offers and I will let you know which terms are revealing the current state of the market here.
I’m keeping my finger on the pulse of what is happening in the Twin Cities metro real estate market so you can be an informed buyer or seller.
The number one question that most people have about homes is whether or not prices are falling? I keep hearing this and for the purposes of this discussion I’m just going to look at the 7 county metro around Minneapolis and St. Paul and we can check the different housing types. The first is the most popular -SINGLE FAMILY HOMES. When I was digging into data for this update I decided to look at it over the past year and the past 10 years so that I can show you trend lines for both. I’m also going to differentiate by new construction and previously owned because new construction is at a vastly different price point as a whole.
Prices & time on market for existing homes
Metrics that I didn’t talk about in the video are how long houses are staying on the market these days. I do see houses sitting for quite a long time in certain areas and price points but the official numbers are charted here. The graph gives the impression of a big increase in time, but real numbers equate to only 3 more days.
New Construction
I’ll talk about pricing but for new construction I see a lot of opportunity for buyers here! Why? Builders have a lot of inventory right now. They have completed homes as well as homes that are underway with completion dates coming up. They need to get these homes off their books so they can continue to build and the interest rates have slowed things down for everyone, but the big builders are offering rate buy downs for buyers right now along with all kinds of other incentives, from appliance packages to closing costs.
Things to consider are that these homes are mainly being built in 3rd ring suburbs and exurbs so if proximity to the city is important you’re less likely to be able to get a new build – or at least one with a big builder that can offer these incentives. There are custom builds on lots here and there in the city.
You’ll see a slight dip in median price ($5000) from the beginning of the year. I have read in multiple sources that they estimate that it would take 10 years of building for the builders to catch up to demand for homes due to the after effects of the housing recession in 2008. We are still that far behind. New construction is showing over 6 months worth of supply but take this with a grain of salt because builders list homes that are TO BE BUILT – so they aren’t existing yet – along with those that they have ready for a buyer to move into.
New construction supply shows a buyers market! I haven’t seen this kind of number in a VERY long time. Ever?
Things are different when you look at previously owned homes. It is still a sellers market, although not the insane sellers market of a year or 2 ago. Homes still get multiple offers, the market is still moving just not at a runaway pace. Previously owned single family homes are sitting at about 1.3 months supply. So you can see the difference here.
WHY is it a seller’s market for existing homes and a buyer’s market for new constructions?
What leads to this? 80% of people with a mortgage on their home are paying less than 5% interest, 50% of them have a rate at less than 4%, they need a big incentive to list their homes and buy a different home with a mortgage at a higher rate. This really is one of those cases where as usual, of you have a good budget you are at an advantage because you can buy new construction and take advantage of the market and the incentives whereas those 2 things don’t exist as much for existing homes, prices are lower as a median but supply is lower too and you don’t get the builder buy downs. But you also don’t have to pay for a deck or the multitude of finishing touches that need to be added to new construction.
Price reductions
Housing inventory is dropping now as we get into the winter and holiday time, but the other thing that is slowing is PRICE REDUCTIONS – the percentage of them is reduced by about half of what it was 1.5 to 2 months ago, from 14% of listings to about 7%. Maybe agents and sellers are pricing correctly now, or maybe they understand that they may spend more than 5 minutes on the market?
Bank owned homes
Another statistic of note are the number of distressed or bank owned properties. We still have fewer than 100 listed out of about 6200 active listings. Less than 1.5%, other markets in the US are not faring as well. People here are still meeting their mortgage payments.
Offer terms that show a big shift
OK – a couple of other things that really stand out to me – the first is that sellers are contributing to buyers closing costs 43% of the time! that’s the highest percentage I can remember seeing. People including appraisal gap language on there offers has almost disappeared (although escalation clauses are still being included) but this makes sense when you see that most sellers are now seeing themselves getting about 99-100% of asking – this number was at 105% or more for a while and that was just crazy. Another option if you are in the previously owned category of home, if you find one you like and it has a motivated seller you could ask for them to do the rate buy down for you. Interest rates have been dipping back down, but it’s doubtful that they will ever get as low as they were during the pandemic. This will likely spur some more buyer activity as we head into spring.
Data on Condos and Townhomes
If you have questions about the real estate market in the Twin Cities area – city or suburbs! – reach out! I love to talk to people that meet me YouTube or the Blog! Mary
If you’re looking for something a little “extra” in your next home, you might be interested in taking a look at these neighborhoods in Edina. Some amazing homes and lots of variety in architecture from traditional to very modern on huge wooded lots. The location can’t be beat either!
A video tour of Indian Hills and Indian Trails
WHERE IS INDIAN TRAILS / INDIAN HILLS?
Indian Trails & Indian Hills are residential neighborhoods located in the city of Edina, Minnesota. They are located in the southwestern part of the city, near the border with the neighboring city of Eden Prairie. The neighborhood is bounded by Highway 169 to the west, Rt. 62 to the north, roughly the high school to the east, and about Valley View Rd to the south around Braemar park.
Indian Trails is located approximately 13 miles southwest of downtown Minneapolis and 11 miles southeast of the Minneapolis-Saint Paul International Airport (MSP). Commuting to downtown Minneapolis or the airport from the neighborhood is relatively easy, thanks to its convenient location near the major highways of 169 & 494, along with easy access to 100, 62 or 35.
The neighborhood is located just west of Highway 169, which provides direct access to downtown Minneapolis. Commuters can reach downtown in approximately 20-25 minutes by car, depending on traffic conditions.
The airport is also easily accessible from Indian Trails, with several transportation options available. The fastest option is to drive, which typically takes around 16-25 minutes depending on traffic. Additionally, if you wanted to park and take the METRO Blue Line light rail system, it provides direct access to the airport from the nearby Mall of America station, which is approximately 8 miles from Indian Trails. The journey from the Mall of America to the airport takes around 12 minutes. Finally, there are also several taxi and rideshare services available in the area, which can provide convenient transportation to the airport.
WHY LIVE THERE?
Indian Trails / Indian Hills area is known for its large, wooded lots and quiet streets. Many of the homes in the neighborhood were built in the 1950s and 1960s, and feature traditional architecture and well-manicured yards. Some of the homes in the neighborhood are valued at well over $1 million. The median sales price in this area is $982,500, well above the median for the Twin Cities metro, so a little “spendy” as the Minnesotans might say, but if this is in your budget it’s worth looking at, and if it’s NOT, it’s fun to look at the homes anyway! 🙂
If you want to learn about other neighborhoods and suburbs of the Twin Cities, check out my YouTube channel – I have an entire playlist of them that I add to regularly.
One of the things you’ll note about this area are the mature trees, the hilly landscape, and the curving roadways that give this neighborhood a sense of being nestled away from the suburban bustle, even though it has easy access to everything you might want. It definitely has a quiet, secluded and cozy feel.
Parks
The Edina area is home to several parks, including the 29-acre Arden Park, which features trails, picnic areas, and sports fields. But the closest is nearby Braemar Golf Course and Braemar Ice Arena which provide opportunities for golfing and ice skating, respectively.
Braemar Arena has three sheets of indoor ice and one outdoor seasonally.
The Braemar Golf Dome is the largest and longest-hitting indoor practice facility in the Twin Cities with 44 tee areas on two levels.
If you’re not a golfer, it also has an almost quarter-mile turf track which is open from the beginning of November through the end of April under the dome.
I’m not a golfer, and not a mall walker, sometimes you just want a place to stretch your legs that is “semi” outside feeling but without the risk of breaking your neck or your leg on icy sidewalks.
The track is free and open to the public. Make sure you wear layers as the facility maintains a temperature 40 degrees above the outside temperature. That sounds kind of toasty when it’s 35 degrees out, but maybe not as much when it’s below zero? You are allowed to use a stroller if you want to bundle up your little and walk.
Schools
Indian Trails is located within the Edina Public Schools district, and is served by Creek Valley Elementary School, Valley View Middle School, and Edina High School.
Shopping
Indian Trails is located near several shopping destinations in Edina and the surrounding areas. Here are a few options:
Southdale Center: Located approximately 5 miles north of Indian Trails, Southdale Center is a large indoor shopping mall with over 100 stores, including anchor tenants like Macy’s, JCPenney, and AMC Theatres. It takes up a large area between York & France Aves just south of 66th street. You’ll also find store like Target, whole foods, Lunds and Byerly’s groceries in this area. Trader Joes and Total Wine & Spirits is just south of this area at France & 494. In addition there is some upscale shopping all along France including inside the Galleria Mall.
Another option is to head about 6 miles west to Eden Prairie Center. Eden Prairie Center is another large indoor shopping mall with over 90 stores, including anchor tenants like Von Maur, JCPenney, and Target.
If you like an outdoor shopping area that is easy to navigate on foot, check out the intersection of 50th & France approximately 4 miles northeast of Indian Trails. It is a popular shopping district in Edina with a mix of independent shops and restaurants. In addition there is a small independent movie theater (The Edina Theater) that has recently been updated and is a real contribution to the area if you like movies and are also interested in seeing some of the smaller films that may not be blockbusters. Located in the same area is another Lunds and Byerly’s grocery.
Libraries
If you need your Public Library fix, the neighborhood is located almost exactly equidistant from the Eden Prairie Library just west of 169 across the street from the Eden Prairie Mall. It’s convenient if you’re running to Target over there or grabbing a bite at one of the many restaurants nearby. I believe that this library recently had a fairly significant update, and it was pretty nice to begin with! This is not a small library, but one of the larger libraries in the Hennepin County library system.
Eden Prairie Library:
Edina Library
The other options are the Edina Public Library which is just west of 100 where it crosses 50th street, also a lovely building that is a pleasure to spend time in or the 3rd option in Edina is the Southdale Library on York. This may be the only time you hear me say anything negative about a library, but I am not a fan. It’s pretty ugly, it doesn’t feel like a place I want to spend time. It harkens back to the earlier days when it was paired with a court building. Something about that doesn’t fit well. I dare you to disagree with me … THIS is the Southdale Library. (thumbs down).
They had planned to move this library into an empty department store at Southdale Mall before the pandemic, and then shelved those plans. I thought that was an innovative way to fill a large empty anchor spot at that mall and draw more people over there. While we are talking about that mall, it hosts a fairly new edition in the form of the LifeTime fitness health club. This place is a palace, with restaurants, co-working space, pools, soccer fields, spa, tennis and pickleball courts etc.
This mall also has the closest Apple Store in case you need some help or a new piece of tech. However, a library in there wouldn’t hurt. 😉
Overall, Indian Trails is a highly desirable neighborhood in Edina, known for its peaceful surroundings, natural beauty, and strong sense of community.
Do you have another community that you’re interested in? Drop a comment down below and I will add it to my list – I love getting content ideas from people that read my blog or watch my videos because it helps me give you what you’re looking for!
