As we approach the end of the year in Minnesota, the rhythm of life shifts. The days get shorter, the temps get colder, and people settle into the cozy rituals that make winter here feel special. And right on schedule, the real estate market slows down, too.
But slowing down doesn’t mean declining. In fact, the Minneapolis–St. Paul market remains one of the strongest and most stable in the country, especially when you focus on the 7-county metro, which is where most buyers want to be.
Here’s what’s happening right now — and what it means for buyers and sellers heading into 2026.
For previously owned single-family homes, the year-over-year appreciation rate is 4.5%. This is exactly where we want to be — growing, but not overheated.
Some markets around the country are seeing price declines. We are not.
Home prices here continue to hold their value, even when individual listings make price adjustments.
A Spotty, Discerning Market
The 2025 market is unusual — but honestly, when hasn’t it been?
Here’s the pattern we’re seeing:
Homes at or below the median price point often sell quickly and may receive multiple offers.
Higher-priced homes have a smaller buyer pool and may sit longer.
Across all price points, buyers are becoming more selective. They want move-in ready. They want value. They want fewer reasons to hesitate.
For sellers, this means preparation matters more than ever. Removing objections before buyers walk in the door is critical.
Current Prices and Inventory Levels
Previously Owned Single-Family Homes (7-County Metro)
Median price: $418,000
Average price: ~$508,000
Months supply:1.7 This number has not budged in more than a year.
Anything under 5 months of supply is considered a seller’s market, and we are firmly in that territory.
New Construction
Median price: $600,000
Average price: ~$713,000
YOY appreciation: 6%
Months supply: ~6 months
New construction is a balanced market, offering buyers an abundance of choice—but typically with trade-offs, including larger homes on smaller lots and landscaping that won’t feel mature for years.
Why Winter Is One of the Best Times to Buy
If you’re planning to buy at all, winter often provides the strongest buyer advantages:
More motivated sellers
Less competition
More negotiation power
More time to make decisions
Less pressure to waive protections
You can often secure a lower price in November or December than you can in the spring, when additional buyers flood the market.
Looking Ahead: Predictions for 2026
The Chief Economist for the National Association of Realtors predicts a 16% increase in home sales next year, assuming the Federal Reserve reduces interest rates as the economy cools.
If interest rates drop to around 6% or below, demand could skyrocket.
That sounds great for affordability — but keep in mind that lower rates also mean more competition. Prices and bidding activity typically rise when buyer demand returns in force.
And remember: Minnesota’s spring market starts in January.
Every year, without fail.
If you’re hoping to avoid competition, winter may be your moment.
Final Thoughts
Whether you’re buying or selling, strategy is everything.
Buyers: Winter gives you leverage and options.
Sellers: Patience is key in slower segments, but demand always returns with the new year.
The Twin Cities continues to offer stable appreciation, strong demand, and a market that behaves differently from many coastal or high-volatility areas.
And if you’re relocating here — welcome. It’s a great place to be, even in the winter.
If you want personalized advice or want to start a conversation about buying or selling in 2026, I’m here to help!
Here we are, diving into the heart of a Minnesota winter. If you’re considering a move here, you might imagine months of hibernation and freezing temps as the ultimate challenge. But I’m here to show you that cold doesn’t mean the end of the world. In fact, Minnesotans embrace winter with open arms and a full roster of activities to keep spirits high and bodies warm.
As a realtor in the Minneapolis area, I understand the concerns about moving to a state known for its snow and cold. I moved here from out of state myself, unsure of what to expect. But I’ve been pleasantly surprised by how much there is to love about winter here. If you’re curious about life in the Twin Cities, be sure to download my free relocation guide linked below.
Let’s explore some of my favorite ways to make the most of a Minnesota winter—from cozy indoor escapes to thrilling outdoor adventures.
Adopting a Winter Philosophy
In Nordic culture, there’s a philosophy that all seasons are wonderful if you’re dressed for them. Minnesotans have embraced this mindset, often referred to as “hoogah” (hygge), which means finding comfort and pleasure in simplicity. Instead of dreading the snow, we lean into it—and so can you.
Start your winter adventures with a cozy cocoa crawl paired with bookstore browsing. Many local coffee shops serve exceptional hot cocoa. Here are a few recommendations:
Minnesota is also home to fantastic independent bookstores. My favorite is Magers and Quinn in Uptown, but there are many others to explore in both Minneapolis and St. Paul. Make a day of it and discover your next great read!
Outdoor Winter Magic
Winter is a playground for kids and adults alike. Here are some highlights:
Ice Castles & Mazes: Every year, life-sized ice attractions pop up across the state. This year, the Ice Castle is at the University of Minnesota campus, and the Minnesota Ice Festival in Eagan features a record-breaking ice maze.
Snow Sculpting Championships: Held in Stillwater, this event draws artists from around the world to create breathtaking snow sculptures. Pair your visit with shopping or dining in Stillwater’s charming downtown, home to five candy stores—perfect for families!
For traditional outdoor fun, sledding, skating, and snowshoeing are always a hit with kids.
Feeling adventurous? Try fat tire biking, a growing winter trend. These bikes have large, nubby tires perfect for snowy trails. Rent one at a shop near Cuyuna Country State Recreational Area and explore groomed paths. Consider pairing it with a cabin rental for a memorable winter getaway.
Relaxation takes center stage with hot-and-cold plunges. Treat yourself to a spa day at Watershed Spa (Minneapolis) or head north to Cedar and Stone Sauna (Duluth) for a sauna session followed by a dip in Lake Superior. For a local option, try the Sauna Village during the Great Northern Festival.
For a luxurious staycation, book a room at the Hewing Hotel (Minneapolis). Their rooftop hot pool offers stunning city views and a perfect blend of hot and cold contrast. Afterward, enjoy a meal at Spoon and Stable or another downtown gem before retreating to your cozy room.
Winter is Wonderful
Minnesota winters are full of opportunities for fun and connection. From cocoa crawls and bookstore hunts to ice mazes and saunas, there’s something for everyone. Check out my other videos for even more ideas, and don’t hesitate to reach out with questions about moving to the Twin Cities. Winter isn’t just a season here—it’s a way of life we love.
Are you ready to embrace winter? Let me help you find your dream home in Minnesota, where every season offers its own unique charm.
Maybe the words “confused” or “amused” would also work to describe our reactions… 😉
I held a lot of stereotypes in my head about Minnesota but I also had a pretty large black hole where Minnesota information might have been if I had given Minnesota much thought at all before moving here… but I hadn’t.
Disclaimer out front – we LOVE living in Minnesota. I’m probably going to get ridden out of here on rails for this video/post, but I’m still going to do it! I am not a native, I’ve lived in Ohio, Michigan, Atlanta GA, Chicago IL and now I’m here, so I’m just coming at this with the eye of an outsider, and I’m sharing it with you.
#1 STATE PRIDE
The first thing that struck us when we moved here was that Minnesotans are extremely proud of their state. I have lived in SEVERAL other states as I mentioned and in none of them has there been this level of state branding worn by the residents. People wear Minnesota gear ALL THE TIME. I don’t mean gear for just the sports teams, I mean it’s like school spirit day every day because people wear clothing & hats, put bumper stickers on their cars, there is Minnesota themed artwork in their homes – you name it! All proudly proclaiming that they live in, and LOVE living in, Minnesota. It’s everywhere. Also, Minnesotans do not tolerate a less than favorable comparison to another state very well, even just a hint of one.
If there is any glory to be had, even if it’s tied by the very finest of threads, they will mention it. If someone does something notable and their uncle’s in-laws cousin once removed is from MN – well, good enough! Minnesota can lay claim. I really like it here too, I think a lot of this is somewhat justified. BUT this is a video about what stood out to me as an outsider and it is a very noticeable trait when you’re not from around these parts.
One of my Minnesota born and bred friends explained that Minnesotans are a little sensitive about being in fly-over country, it’s a little out of the way if you’re from the coasts, and it hurts to have your exceptional light dimmed by the fact of geography. The place has a lot going for it and if you know, you know. But if you don’t know …you may be tempted to step in it a bit and not give credit where Minnesotans believe that credit is due. 🙂 If you’re on Twitter follow the account “Indignant Minnesotan” – whoever this is gets it.
#2 Infrastructure
One thing that I was surprised by, and am now ecstatic over is that the infrastructure of the Twin Cities and the state as a whole is built very intentionally around helping people enjoy being outside. It took me a while to put my finger on it even though I take advantage of this nearly daily. It’s just so EASY to be a part of the natural beauty and lakes that surround us whether it’s on foot, on bikes or in the water itself. Chicago had some of this on the lake front, but MN has it EVERYWHERE. It feels like Minnesotans are born feeling that being outside and having easy access to it is their birthright.
I absolutely LOVE this characteristic and I can’t believe how deeply integrated this is into most of the state – at least the parts that I’ve been in so far. There are bike trails absolutely everywhere. City, suburb or exurb. The lakes are an extension of the way people live here and a lot of parks have ways for you to enjoy the water whether it’s through beaches, boat rentals, paddle boards, keeping them cleared for skating and pond hockey in winter or making them accessible for fishing. Much of the northern part of the state is forest or borders on Lake Superior and the parks and cabins that are available for spending time outside up there are extensive. Trails are used year round, for hiking, fat tire bikes, skiing, or snow mobiling.
This one isn’t too much of a shock based on the last one, but cabin culture here is strong. People clear out of the city pretty much every weekend through the summer to head up to the cabin. All summer long you’ll see lots of photos of people having fun outside at lakes and cabins and you can enjoy easier access to just about everything in the city because no one is here.We don’t have a cabin, but I imagine that would be nice. 😉 but in the meantime, I’ll just be here in Minneapolis enjoying fewer people at the things I want to visit.
Everyone thinks COLD when they think of Minnesota, what they don’t tell you is how ridiculously HOT it gets here in the summer. The month of July is like a sauna. Super humid and super hot, it’s just gross.
I am a cold weather person, I like to enjoy the moderate days and the sun for a few months but cold weather makes me happy inside. So July is not my favorite. We moved from Chicago which is significantly further south and it is significantly hotter here in the summer. I like to tell my friends and family in Ohio when they start talking about how awful our weather here must be in the winter that it’s about 10 degrees colder in winter and 10 degrees hotter in summer.
Most states talk about snow days for school. You aren’t likely to see that here. Kids go to school in the winter. The potential for kids being called off school for weather comes in when spring hits or the early fall when kids start back to school for a “heat day”. When it’s hot out with no AC in some of the schools, it’s intolerable and kids stay home (or go to the lake!). We do get the occasional day called off for cold or snow too, MPS calls school when its -35F or colder with wind chill or if, there is an extra large and fast snowfall. Whatever you imagine this to mean – double it.
5. The FAIR.
Minnesotans are OBSESSED with their state fair. They call it the Great Minnesota Get Together. They love the rides, the CROWDS, the “pronto pups” aka corn dogs and the “sweet martha’s cookies”. People will go to the state fair multiple times during the week that it’s running. This is not an inexpensive endeavor, in 2021 they are honoring 2020 admission tickets. You’re best bet is riding one of the buses from the various park and rides rather than trying to find a place to park. It’s a relatively inexpensive ticket and gets you there and back easily pretty much whenever you want to go.
I worry that there is something wrong with me, but then I think – I can’t be the only one that doesn’t love it! There must be more like me! I think we all try to keep it to ourselves to avoid the gasps of astonishment and confusion.
It’s not personal Minnesota! I just don’t like huge crowds!
If you like being smooshed together with vast swaths of Minnesotan humanity – give it a try! The one thing I DO love about the fair is the annual “Crop Art” competition just because it is just SO MINNESOTAN, and so creative. It amazed me all three times I went.
But now I like look at photos instead so I don’t need to be near all those people.
Another surprising community! Today I’ll show you around New Hope MN and give you all the reasons you may want to consider living there.
Lately I’ve been working with several first time buyers, and if you remember buying your first home you probably didn’t have a massive pile of money for a down payment as many people who may have equity from a sale do, so you have to look for a starter house in a more affordable neighborhood.
That’s where New Hope comes in! A quick look at what is on the market right now illustrates my point – there are 30 active homes in New Hope ranging from a 1 bed 1 bath condo for $115,000 to only a few homes in the mid-upper $500’s with MOST homes being single family homes in the upper $200,000’s to mid $300,000’s. The MEDIAN price in New Hope is at $309,000 whereas the Twin Cities Median is at $380,000.
If you’re an investor and want to rent out a residential property you must register the property with the city.
In addition to single family homes and people just starting out in life, New Hope makes senior living a priority as well. They have 3 long term care facilities, some assisted living complexes and senior citizen apartment homes.
Let’s talk Property taxes… New Hope is in Hennepin County, the effective property tax rate in New Hope is 1.35%. Hennepin County’s portion is 1.28%, the effective tax rate for the state of MN is 1.08%. Sales taxes since I looked this up as well – MN has a sales tax rate of 6.88% on everything except (I believe!) food, prescriptions and clothing, and the sales tax rate in New Hope is 7.13%.
The beauty of New Hope is not only the affordable home prices, but that New Hope is actually a really lovely community and it has a lot to offer.
New Hope is an easy commute to downtown or the airport. It’s only about 20 minutes by car to downtown. and Because I’m such a fan of our regional parks I also want to point out how close New Hope is to the beautiful Theodore Wirth Park. I touched on this park in my Golden Valley video (which you can watch next!) but Theodore Wirth really has it all. It’s just gorgeous, and can keep you busy outside no matter what season we’re in.
If you are leaving town or going to fetch a visitor, it’s about 26 minutes to MSP airport and while you’re down there you can stop by the Mall of America and get your shopping done or amuse the kids on the roller coasters. I was a major skeptic because I am not really a “mall person”, but I like “The Mall”! It has so many great stores that you don’t see everywhere else, some nice food options and my kid and I had fun doing some of the rides the first time we stopped in. Being close to it is nice because it can just be something you do for an hour or two and you don’t have to feel like you need to spend all day there since you can go back any time. The Ikea is right next to the mall as well, so if you like. Swedish Meatballs and cryptic assembly instructions for affordable furniture that utilize allen wrenches – you’ll be in heaven!
New Hope does NOT have it’s own school district, all schools in New Hope are part of the Robbinsdale Schools aka ISD 281. It’s a pretty big district with 10 k-5 elementary schools, 2 middle and 2 high schools. I always recommend that you do your research and see if the school district that your home is in is one that you will be happy with. You can check out Niche.com or GreatSchools, but another option is to actually VISIT the schools and talk to the administration and see things for yourself.
Speaking of brain food… New Hope residents have convenient use of 3 branches of the Hennepin County Library system. They can easily access Brookdale Library in Brooklyn Center, Golden Valley’s adorable little library, or the Rockford Library in Crystal. One of my favorite topics when giving community profiles is the park systems. I just think green space improves the quality of life for everyone. New Hope agrees! They are a small city (only about 21,000 residents) but they have 18 city parks and several other venues offering all kinds of recreational activities including:
the new Hope aquatic center which is a community pool and water slide
2 off leash dog parksa 9 hole public golf course
disc golf course
ball fields
a skate park
tennis / pickleball courts
Community gyms with basketball courts that can be rented out for the day
and 3 outdoor skating rinks that are open in season.
New Hope allows for a LOT of pets – 3 dogs, 3 cats and 3 “other” household pets, as well as 3 “fowl”, This is not restricted to actual chickens – if you want ducks instead – go crazy! All dogs, cats and ferrets need to be licensed and vaccinated for rabies.
Fencing – IS ALLOWED! 🙂
OK – that is ALL I HAVE on New Hope! It’s a lovely community that I feel lucky to have worked in lately. It offers a lot of great options to people that may be priced out of other areas of the city. It’s 100% worth considering if you’re wondering where to live in the twin cities metro. If you like this kind of content – I have an entire playlist of neighborhoods/suburbs on my YouTube Channel that you can look at to see what feels right for you.
Is the feeding frenzy OVER?!? Not quite, but it seems to be a LOT better? Of course that is relative! and in this case I mean relative to the crazy times we were in in March – May!
In this video and blog post I’m giving you the current conditions of the market for the 7 county Twin Cities area broken down by property type and then I’ll go into a bit about what we see as far as what terms are resulting in accepted offers right now. These are the encouraging signs I’ve been looking for!
This year has definitely been one for the books! It has been the strongest sellers market that anyone I know can remember – and this is AMAZING if you have a home to SELL! Prices are higher than ever and you can dictate the terms for the MOST part – HOWEVER! Buyers! Do not despair! Things ARE getting easier for you now (at least compared to a couple of months ago when it was an all out SCRUM!)
A note about these graphs – I chose to make them show monthly ups and downs without the smoothing effect that softens the seasonal aspects, so keep that in mind as you look at the dips and heights. the market changes constantly, and this shows those changes month to month.
The median SFH price in the Twin Cities sits at $380,000 – that is UP from $326,100 at the beginning of this year.
Median Price TC Metro Single family Homes
You’ll often hear me talk about the “absorption rate” or the # of months supply of housing available to be sold if no other homes were to go on the market. For context it is considered a BALANCED market if there is 5-6 months of supply. We have been UNDER 1 month for different segments of the market for much of this year, mainly anything under about about $600K. Right now we are STILL at .8 months for anything under about $400k. For single family homes in general we are at a little over 1 month’s supply of homes.
Months supply of Single Family Homes
Homes are only on the market for FIVE DAYS!!! a year and a half ago it was FOURTY FIVE! And only 6 months ago around 20! So still homes are still flying off the market.
Days on market – SFH
Let’s look at the 2 softer spots – Townhomes and Condos.
The median price for a townhome is consistent with the rest of the market rise in prices and is at $271,000 from $240,000 in January.
Median Price for Townhomes
For Townhomes there is a little uptick in supply and we have a full month available right now.
Months supply of Townhomes
Condos! This is the place if you’re looking for any kind of deal! Sellers are negotiating! You can get an INSPECTION! 🙂 Condo prices are at $171,000 for a median price, up a similar amount from the beginning of the year as other property types are.
Condo median price
The supply of condos is where the opportunity comes in – Still a sellers market but for people selling condos it can feel like a whole different world. There are 2.5 months worth of inventory available. This has dropped a small amount since January but has been relatively flat this year overall.
Months supply of condos
Now let’s look at what kinds of offers are being accepted!
This is a valuable bit of information that the Minnesota Transaction Coordinators gives us on a regular basis and I’ll add my 2 cents to about what I am seeing (although as a much smaller segment of the market)
Offer Acceptance Rate: 42%
Inspections Waived: 31% – we haven’t been in the 30% range since March
My 2 cents: the last 6 contracts (this past month or so) that I have either written or accepted have had inspections included and accepted. that’s 100% of my sales in the past several weeks. I’ve been thrilled for my buyers and I am 100% fine with it for my seller as well because I feel like inspections protect EVERYONE, the buyer, the seller and ME.
Pre-market Sales that happen without hitting the MLS : 2.8%. This is DOWN from earlier this year! It was over 5% for quite a while – maybe due to pandemic fears about having too many people in a home?
Average Purchase to List Price: 102.7% – about the lowest it’s been since the spring market!
Still great for sellers, but also good news for buyers! And a lesson to sellers about pricing appropriately. Things change, you want to not have YOUR home sit because it’s been priced too high as well as understanding that unless you have something really special that the insane bidding wars may be over for now.
I have talked to many agents saying that showings are down from earlier this spring when agents were setting overlapping showings and having the home packed full of people for 12 hours per day. Now there are private showings again. There may be open spaces in the calendar. More than one offer may come in but they aren’t seeing the literal STACKS of offers that they were before.
Financing Types:
Cash 11.5%, which is higher than it’s been
Conventional 68.5%, – a little lower than its been
FHA 8.5%, higher!
VA 3%, Still a rough spot! People that use VA are often choosing it because it is a no downpayment loan, which means they are short on cash. If you can’t make appraisal gap guarantees, or add other sweeteners that need ready cash available this can be a VERY tough time to buy.
USDA 8.5% (this is a high number and I wonder if it is a function of the sample size that they had – if they had 2 transactions it could hit this #). These loans are generally for rural buyers.
Seller Paid Closing Costs: are at 12%
Home Warranties: 5.7% – I was able to negotiate this recently as well!
Contingent Upon the Sale of the Buyer’s Property: 8.5% (this seems HIGH to me! I’m still cautious about having this particular contingency, it can be a real weak spot in an offer if you have any competition at all. I would avoid this at all costs or you may have to make it an offer they can’t refuse due to price, or magically find a seller that wants to stay a little longer.
And that is ALL for this week. I’ll be back next week with some more neighborhood profiles. I’ve been AWOL due to this insane market and actually getting a vacation for the first time in YEARS. No regrets. 😉
Hi everyone! It’s been a while, real estate is BUSY right now but I have been working on a profile of Golden Valley & I wanted to share that with you.
I’ve been working with some buyers and we have been spending quite a bit of time in Golden Valley. Housing in the Minneapolis area is very tight right now and the availability of homes anywhere near the median twin cities home price of $330,000 are hard to find and gone within a day or two, and Golden Valley has been a surprising source of homes in this price range. While it definitely ALSO has higher priced homes, this is still an area that can be considered “affordable” and it has a LOT to offer. And I am going to cover it ALL (or at least a LOT of it!) and I’ll answer the 2 surprising questions I get asked so often about just about every area of the metro.
Golden Valley gets it’s name from flowing fields of wheat, fields of sunflowers OR Irish immigrants that had fond memories of the River Shannon. As a midwesterner, I’m going to put my money on the wheat.
People are HAPPY there…
The city does a periodic survey of it’s residents to find out how they feel about the community, and 98% of Golden Valley residents give the city an “excellent” or “Good” rating for quality of life. The three top reasons for the rating are Housing and Neighborhoods, People, and Government and Services. I can’t really look at the PEOPLE side of things but I will give you a look at housing and government services. FYI the last survey was in 2016 and here is the link if you care to read it.
Golden valley is in the NW side of Minneapolis and it is very conveniently located to the city. Since it is a suburb, if you are someone that likes to get away to state’s lakes and cabins in the north and west, you won’t really have to fight the traffic to get there.
Commute
If you need to commute to downtown and you are taking your own vehicle the drive is about 10-15 minutes. If you don’t want to pay to park, or you are planning to just hit a Vikings or a Twins game downtown, in the (hopefully) not too distant future you should be able to hop on the newly extended Metro Transit Blue Line light rail extension that will go from downtown and stop in Golden Valley on the way to other NW ‘burbs. This extension will follow a current railway that is in place and not involve any new tracks.
If you want to head out of town entirely or have someone heading in to visit, it’s only a 20 minute drive to MSP Airport.
Types of housing
Most homes in golden Valley were built in the 1950’s and 1960’s. If you love midcentury modern architecture THIS is the place – street after street of midmod homes. Some have been updated to a more current aesthetic but others have some true authenticity to them. There is a market for both! You’ll see some newer homes in my video tour as well. A benefit of older housing stock is that they usually built on larger lots than we see today and the landscaping is mature. The other thing that stands out to me is that typically these neighborhoods have some variation among the homes, you don’t see a lot of the “cookie cutter” feel that you get in newer subdivisions.
The median home price in May 2021 for Golden Valley is $374,150. This is higher than the Twin Cities Metro as a whole. I have been working with a few buyers that have budgets in the low to mid 300’s and we have found options here!
What will you pay in property taxes to live in Golden Valley?
Golden Valley is in Hennepin County which has an effective property tax rate of 1.28% (state average is 1.08%) and Golden Valley property tax is at an effective rate of 1.38%.
Work
Several large corporations have nice leafy campuses here including the HQs of General Mills and Tennant Company as well as major US offices for Allianz Insurance, Honeywell & Resideo.
Parks
Golden Valley, like much of the twin cities, loves their green space and parks. They are also the home of one of the best parks in the Twin Cities area – Theodore Wirth Regional Park. It’s 740 acres of happiness and outdoor fun. I’m just going to give you the highlights – in summer enjoy the golf course, disc golf course, beach, walking and biking trails, archery, or fishing and in winter tubing, x-ctry skiing, snowshoeing, sledding, snowboarding, fat tire bike trails…
15% of Golden Valley is PARK! There are 2 off-leash dog exercise areas in outdoor hockey rinks at Gearty & Medley Parks, both are FREE to use. Golden Valley does not require dog licenses, but they DO require a current rabies tag.
Part of the parks are TWO activity / community centers. Lets start with the basic one – Davis Community Center attached to Meadowbrook Elementary. It’s a 10,000 sq foot gym space with open gym for basketball, pickleball, volleyball, kids gym activities and parks rec leagues.
The crown jewel in Golden Valley is the BROOKVIEW Center. It’s so pretty! It started life as a private country club and was purchased by the city in the 1960’s.
There is a beautiful building with a bar and grill and lots of patio seating overlooking the golf course and lawn bowling courts. The city grooms trails for x-ctry skiing and fat tire bikes in winter and if you have little kids that are going nuts indoors and need to burn off energy you can take them to the indoor play space at Brookview and buy yourself some sanity for about $5-$6/day depending on whether you’re a resident or not.
Schools
Let’s talk about schools – Golden Valley does not have a school district of its own, residents in Golden Valley will send their children to either Robbinsdale Schools OR Hopkins Schools depending on the address of the home. If you have a preference, it’s important to do your research up front and figure out what will work for you and make sure your home is where it needs to be to be in district. One school that stood out to me is the Perpich school for the arts – its the tuition free state arts high school and if you have a child who is an artist and this is what they are drawn to more than anything, it might be a place to consider! Seems like such a valuable asset to have this available to students who are serious about the arts. They even have a residence hall!
Library
Golden Valley has a small branch of the Hennepin County Library system. The architecture fits with the rest of the town – very midcentury. Despite it’s smaller size, every branch has access to the enormous number of books within the library system which includes 41 branches including the main branch downtown ad larger satellite branches like Southdale. They will also request books and other material for you from libraries throughout the state via interlibrary loan.
OK! Here it is! the TWO QUESTIONS I get asked ALL the time!
1. Can I fence my yard? YES – unless your’e in an HOA community that won’t allow it or has some restrictions, you may fence your yard! Front yards may have a 4′ limit and back yards 6″ high, but see the city web site for rules. 2. Can I have CHICKENS? YES! Up to 4 HENS per lot. Hennepin county municipalities have nearly all agreed to allow yard birds.
And last thing – if you have chickens you won’t need much of this because they LOVE veggie scraps, but if you live in Golden Valley they do include municipal composting with trash pick up. We separate compostables into green bins here and it goes to a large composting facility. The beauty of this is the ability to compost meat or dairy which aren’t a good idea in backyard composting bins.
That is ALL I have for Golden Valley today! If you have questions – reach out! I’d love to chat and see how I can help you.
My last post & video about this were pretty well received, so even though numbers aren’t flashy, I’m going to try to make this a monthly feature as we navigate through this crazy market. This post has some good little nuggets in it if you’re in certain segments of the market, so stick with me.
There is an obvious lag in the data because we need to look after homes close and that shows up in the MLS, but I do get some data relatively quickly thanks to Minnesota Transaction Coordinators, a company that helps many of us with processing our transactions.
Let’s start there with their analysis of terms that they see in contracts.
Inspections
In the past couple of months we’ve seen quite a few buyers deciding to waive the inspection in order to release one more contingency ahead of everyone else. By “a lot” I mean 38% of buyers were waiving inspection in the first 2.5 weeks of the month, but when they looked at the first through the 26th the rate went to 31%. That means that enough people have STOPPED waiving them to lower this percentage by 7%. Buyers are insisting on protecting themselves and sellers are acquiescing to that.
Offer acceptance rates
Even better, offer acceptance has gone from 31% for the month last week, to 39% for the month over all as of the 26th. YAY!!!! Sellers are accepting offers! I represent a lot of buyers and it has just been TOUGH. So this is great news.
Homes listed on the open market vs witheld
In an office as large as mine, we often hold listings off market and only market to agents within the office. This shrinks the pool of who looks at the house which is desirable for a lot of reasons – from Covid, to privacy, to simply wanting to not have to deal with the preparation and hassle of selling on the open market. Sellers can name their terms and if another agent has a buyer that can meet those, there is a happy meeting of the minds without all of the associated prep work, exposure, etc and everyone feels satisfied. The number of sales that they have worked on in this status is down to 5.6%. This is good because more homes are hitting the market than have been.
Percentage of list price received
Current purchase price to list price ratio is “down to” 104% from 105% last week. It has been hovering between 103% and 105% in the past couple of months. It’s good to have that number in mind, even though it’s not a fixed price, it’s an idea of what you should think about when offering on a property that has a lot of interest. Price is not the entirety of a an offer, there are a lot of other terms that need to be in line as well, but this is good info for this metric.
Seller paid closing costs
26% of deals include some seller paid closing costs. I have to assume in this market that the offer price was increased to account for these, but I like that we are seeing it because it means sellers are accepting these terms.
Forms of financing
76% of loans are conventional (you do NOT need 20% down for a conventional loan! These are viewed as more favorable and if you can get a conventional loan it’s one more check mark on the list of terms).
FHA loans represent 10% of the offers, CASH 10%, and VA & USDA loans are at 4%.
Traditionally, inventory really increases around this time of year (inventory = homes being listed and available for sale). We currently have less than HALF of the listings we had 6 months ago.
Good news for downtown condo buyers!
Downtown condos are in a balanced market right now! If you are looking for a condo in the central city including neighborhoods like Loring Park, Downtown, University, Dinkytown, Elliot Park etc… now is the time. We believe that this is caused by the pandemic and people wanting to live in less dense housing + fewer people needing to be downtown for work, but don’t expect it to last with the speedy rollout of vaccine and life returning to somewhat new normal.
Days on Market are up to 41 (only from 38), but these are the kinds of indicators that let buyers know that they will not likely have to pay more than list, that sellers will be willing to negotiate because they know you can find another condo to buy and someone will play ball with you.
So that is what is happening! Sellers are still mostly in control of things, but if you’re a downtown condo buyer you’re in the sweet spot!
Do small towns appeal to you? I love them. They make me think of community and knowing your neighbors and the businesspeople in town. Especially when they have a charming, walkable, central area with great shops and restaurants where people will gather. Let’s see what is going on in Northfield MN!
Even better, in my opinion, is when the town is the home to a college – or in this case, two colleges! Having students and academic institutions around do a lot for small town life. It brings the energy of youth, the cultural pursuits of the college, and it also pumps the local economy full of money spent by students, teachers and staff.
Northfield MN is home to St. Olaf College (approximately 3000 students) as well as Carleton College (approximately 2000 students). Both are private, competitive, liberal arts schools founded in the 1800’s.
Northfield is located on the banks of the Cannon River and the downtown area centers itself on that feature. It was founded in 1855 and the charm of the historic downtown reflects the long history. Watch my video so you can get a live look at the downtown. It’s cute!
Photo of the river in downtown Northfield from Tripadvisor
Northfield in relation to the Twin Cities Metro
The city of Northfield and where it lies in relationship to I-35
Northfield Parks
For a small town, Northfield has a LOT of parks! There are 30 city parks!
Northfield has a dog park right on the river, 6 outdoor skating rinks in the winter and the Northfield Ice Arena for year round hockey and skating.
In downtown Northfield you’ll find Bridge Square which is the heart of the city and the site of summer concerts and festivals like the “Defeat of Jesse James Days” fest in September of every year – Northfield’s claim to fame is that the James gang once tried to rob the bank in downtown! Nothing like a little armed robbery to encourage an annual festival…
In addition to typical parks, Northfield has 10 soccer fields at the Spring Creek Soccer Complex, a public pool with a low daily price – I think I read $4.75 / day?!? at the Old Memorial Pool. Sign me up! Our pool up here is closer to $15/day. cray. If baseball is your thing – you will likely be playing at the Sechler Athletic complex home to 4 baseball fields and adjacent to the Mill Towns Trail.
From the state DNR site: “When complete, the Mill Towns State Trail will connect the cities of Faribault, Dundas, Northfield, Waterford, Randolph, and Cannon Falls, for a distance of approximately 25 miles. The trail will be an important link in the developing southeast Minnesota trail system, connecting the Sakatah Singing Hills State Trail in Faribault with the western end of the Cannon Valley Trail in Cannon Falls.” I love a good trail! If you live in Minnesota, chances are good that you do too.
Awards- Northfield brings home the bling
Northfield racks up the awards, they clearly have the attention of those who like to rank cities. If you check out the city web site you’ll find a comprehensive list, but there were multiple mentions for things like “Best Cities to Live in America” and “Safest Cities MN”.
Northfield MN Schools
Niche.com gives the Northfield schools and overall grade of “A”. The district consists of 3 elementary schools: Sibley, Bridgewood & Greenvale Park with a total enrollment of around 1600 students and a student teacher ratio of 16:1. The elementary students then move on to Northfield Middle School & Northfield High School – each also graded “A” by Niche.com.
Demographics – who lives in Northfield?
Median household income in Northfield is higher than the national average at $70,148. The population of Northfield is around 20,000 people.
67% of residents are homeowners and the median single family home price is less than the twin cities metro median, but on a consistent rise over the past 3 years.
I also pulled information for townhomes. Those prices are HIGHER than the median in the twin cities… maybe a function of supply and demand?
Northfield Public Library
Image courtesy of the Friends of the Northfield Public Library
The Northfield library is right in the heart of downtown. It is in yet another historic looking building but the interior is throughly bright and modern. They finished an interior renovation in 2016, but kept the exterior in the character of this charming town. It was originally built in 1908 with a $10,000 grant from Andrew Carnegie! Interesting bit of historical trivia.
Grocery Stores that serve the Northfield area
I did a video on Twin Cities groceries and now I’m adding this to everything… I love food. Knowing what shopping options there are (especially in a small town!) is important to me, so with that in mind I will now unveil the map o’ food:
I think because it’s a college town of relatively decent size, they have a good amount of options from budget choices like ALDI, to Cub & Target and up near the center of town is the co-op. I don’t know what a Minnesota town would be like without a natural foods co-op. It’s a thing here.
Senior Citizens
I kind of stumbled on this while I was researching but wow! I think this looks like such a great resource for the no longer spring chickens… Northfield has a senior center that has an absolutely gorgeous gym, classes in the arts and a bunch of continuing ed / lifelong learning classes. It seems like such a great resource for community and fun. I hate the thought of anyone staying put in their homes when there are options like this available. Check out FiftyNorth.
Other Attractions in Northfield…
The Flaten Art Museum resides on the campus of St. Olaf College and is devoted to the visual arts.
The Cowling Arboretum is a part of Carleton College. It is 800 acres of land that is open dawn to dusk daily to enjoy the outdoors. They do have trails for cross country skiing in winter!
The Goodsell Observatory is on the campus of Carleton College and is such a beautiful old building. In normal (non-covid times) the Goodsell offers open houses for people to come in and take a look. Looking forward to having that option again (soon)!
Goodsell Observatory image from mortarr.com
I think that’s it?
Northfield has a LOT going on for a town this size. I start these profiles thinking it will be short and sweet and end up finding more and more as I look. It’s great because I now feel like I have a good bit of knowledge about a lot of places around the twin cities – I love that for me, but I really love that it helps me help other people who are trying to figure out where they want to live.
Next week I’ll give you another neighborhood profile – I’m excited about my small town series, and I have one I love and plan to talk about, but this week I’m going to beat a dead horse a bit and talk some more about what is happening in the real estate market in the Twin Cities metro area. I don’t usually do “market update” posts or videos on my YouTube channel, but the fact of the matter is that right now I’m actively helping 6 buyers try to navigate this market and I want to share a bit of how we look at the market and measure it and then also show you what that means for the Twin Cities right now.
I swear … it was this big!
I feel like anecdotal evidence about how many offers a listing gets, how fast something sells or how far over list price the offers are is shocking at times or maybe sounds like a fish tale that we like to tell – “the big one that got away” kind of thing. Stories are great and interesting, but in this post I want to talk about DATA. Weee! Exciting!
Not exciting? Well, I disagree. I think this tells a very clear story and because it looks at the entire market and then breaks it down by price it might tell the story in a way that makes sense in a different way to more people. This is the WHY behind the HOW that I’ve talked about before when I’ve done videos/posts about making the best offer.
How DATA tells you if it is a buyer or a seller’s market: Meet the “Absorption Rate”
These are my words, not something from a real estate dictionary somewhere.
When we look at a market and try to decide who it favors we look at the number of active listings available in a 30 day period and then look at the sales. It’s a ratio. But the way that I think is easiest to visualize this ratio is as the “absorption rate”. This rate shows us how long it would take for ALL houses actively listed to be sold if NO OTHER homes were put on the market during that time.
We are measuring time in months for this exercise, and the magic number of months where REALTORS feel that the market is in balance is 5 (not set in stone, some argue for 6 months etc). This means that when it would take 5 months for every home to be sold should no other homes be listed, the market does not favor either a buyer OR a seller.
Any number smaller than 5 indicates a sellers market. The smaller the number the more it favors sellers. This works in the converse as well, the LARGER the number over 5 the more the market favors buyers.
What is the Twin Cities absorption rate today?
Emphasis on TODAY because this rate changes seasonally and with market forces – I’ll talk a bit about what those are too.
The current absorption rate for the Twin Cities metro is 0.86. LESS than one month’s supply of homes. Very much in the favor of the seller. And it is not getting better – in the past 6 weeks the rate has consistently decreased from 1.32 the first week of January to where we are today.
The last half of 2020 was a crazy market, due to Covid hitting in spring and the uncertainty that brought with it there was a lull in what would typically be the busy spring market, but once everyone got their bearings it was off to the races and it never really slowed, even during the holidays. Add extremely low interest rates into the mix (under 3% for a pretty extended stretch), and a bubble of Gen Y aging into home ownership and bumping up what was already high demand from buyers, and things have just not cooled at all. All of this to say we sold a LOT of homes last year and possibly ate into what would have been inventory for this year. January 2021 started with 38% FEWER listings than we had in January 2020.
Supply continues to drop, particularly in the under $300K price range where new listings are down 15% YTD. The over all market YTD has 6.9% fewer listings. If you’ve taken any economics classes at all you’ll know that price is a function of supply and demand. We have low supply and high demand and that is pushing prices higher as people bid against each other for homes.
Absorption rate by price point
The best way to show this is to give you a screen shot of the table that we looked at in our data meeting this week. I love this table because it breaks it out by general price points and you can see the trend over the past 9-10 months for each. You’ll notice that higher price points have slightly looser markets because there are fewer buyers that can manage those budgets. I do think that the $500-$1M may need to be broken up a bit because at $500K there is still a quite a large bubble of buyers that are able to enter the market and compete for homes at that price. There may be a break closer to the mid $600’s where the ratio gets closer to 1.4, but I think $500 is still quite competitive.
credit to Tim Sipprell who pulled this together for our officebaby data geek
So, that is the data geek light version of the market at this point in time in the Twin Cities. An opportunity again for me to encourage you to be as prepared as you possibly can be before you enter the fray. You really need to be in the best position possible if you want to land at the top of the heap when you get into this market.
I’ve been thinking about this topic for a couple of reasons – the first is that I wonder if my enthusiasm for Minnesota leads to blinders about things that people may not like? And the other is me thinking about times when I have lived in other places and have just felt slightly “off”. I was OK there, but it really didn’t feel like MY place. So here are some things to think about before you make the leap!
Weather
It is no secret that Minnesota gets cold. It’s kind of our claim to fame. It’s also a topic that I sometimes hear talked about with some level of fear or worry. I suppose that is as valid of a feeling as any other, but in my experience if you look it in the face and just know that “hey – that’s a big part of living here” and prepare yourself, you’re a step ahead.
Figure out how you can make it work for you. Learn a new winter sport, decide that you like puffy, down-filled fashion statements, and, if you REALLY don’t like being outside (which I think is unfortunate – Minnesota is really beautiful, even in winter! It’s just not “glamorous” beautiful. And to me – that is a bonus!) anyway – if you REALLY don’t like being outside, then you’ll need to figure out ways that you can be happy by being inside. Finding a place to walk indoors, join a gym, find an indoor sports league – there are a lot of them for adults including fun games that aren’t insane (hi hockey! looking at you!) like pickleball.
Yes! I know I’m writing this during a pandemic and this is all limited right now, but hope in the form of a vaccine is on it’s way! Another side note that I hope looks super quaint super quick is that our state vaccinated more than 40,000 people in one day yesterday and numbers are going up quickly, so hopefully we can put this behind us.
The other thing that I have (easily) embraced in winter is seeking the cozy. We like to build a fire in the wood stove in the evening, light candles, have warm drinks – anything that gives you that cozy feeling at home. It can be hard to go out when it gets dark early in winter, but if you’re a person that likes and needs to be around a lot of people (when this is over) make sure you get that cozy feeling from the inside of a bar or restaurant.
If your brain is giving an existential scream at the thought of several months of cold… Minnesota may not be the right place for you.
Landscape
lots of the left side in the west, lots of the right in the north
LAKES everywhere, WATER everywhere
If you need to see mountains or rolling hills, this may not be the place for you. It’s not exactly flat, but the south & western side of the state is nearly flat. It’s farm land for the most part and that part of the state is bordering on the beginning of the Great Plains. The south and eastern side is more rolling as it is part of the “kettle moraine” area where the glaciers receded and left “puddles”. One of the towns I want to profile because I’m a little in love with what I’ve seen online (haven’t been there myself yet!) is Lanesboro, MN. Charming small town on a river, there are bluffs and lots of trees and interesting terrain.
The area that is probably most well known outside the city is the “north shore”. This is some wild country bordering Lake Superior and Canada in what we call the “arrowhead” of the state. Lots of dense forests, and not a lot of people once you’re outside of Duluth. Some of the towns up that way cater to people going out on the Boundary Waters. The northern part of the state has a lot of lakes and that is where people head on the weekends here, “up nort”.
*I* think the landscape is pretty, but I know people that have said they just feel too exposed without a lot of hills. To which I say – seek a home elsewhere where you can be happy!
Color
Lake Superior on the right … Split Rock Lighthouse
You have to be able to appreciate a more stark type of beauty to like living in MN – at least in the winter.
MN loses a lot of it’s color in winter too – it goes from very vibrantly colored deep green to fairly monochromatic. Winter makes me think in white, dark purples, violet and bright cold blue. Many times it’s also gray. We can go days in a row without a lot of sun, but plenty of clouds. You have to know that you’ll have those days. The silver lining to it is that clouds hold in the heat, so if you have a cloudy day, you’re likely having a warmer day! Every time I think of the phrase “bright side of life” I get Monty Python stuck in my head. Do yourself a favor and listen to that! 😉
Light
4:30 in winter…
We are a northern people. With that comes the tilt of the earth on its axis and the slant away from the sun in the winter. In December when we hit the winter solstice the sun sets around 4:45 and it doesn’t rise again til nearly 8. It’s a long period of darkness. Some people HATE that. I sleep well during winter, so I’m in favor. The flip side is that we get ridiculously long days in the sweet time of summer – the sun is up early around 5:30 and sets after 9:30 at night. So much time to be outdoors and enjoying the weather. And Minnesotans take advantage – we know what is coming and don’t waste summer and that beautiful light.
Some people that live here (and love it) still need to spend some time in front of a “happy light” during winter mornings as they have their coffee. I’m basically a mole and don’t mind the dim of winter. You need to think about how you react to that type of environment. A colleague here heads to Mexico in the beginning of December and stays through May – he needs the sun but wants to be back here in summer.
Progressive politics
OK – I normally stay faaaar away from this topic, but hey, it is what it is and I’m just giving you information that you can take or leave. Minnesota has a reputation for being a “blue” state. Our current governor is a Democrat. The metro areas lean progressive- Minneapolis, St. Paul, and Duluth.
As you move out across the suburbs the first rings are bluer than the exurbs and when you’re in rural MN, you are likely to be in some fairly solid red country. This is really no different than any other state if you look at demographics, but if you’re thinking of moving here to be in a blue bubble – well, that’s a stereotype and you’ll have to choose your home wisely.
Likewise, if you’re not feeling the progressive vibe, you are not alone, your people just tend to congregate in areas that are not as densely populated and I’m sure you’re not surprised by this news. Because MOST of the population of the state resides in the metro areas, and most of the people are progressives, you’ll likely also see policies that follow, but we do have loyal opposition in the form of a Republican controlled state Senate and that leads to a more balanced set of policies.
“Minnesota Nice”
I’m sarcastic and an introvert so people here don’t faze me, but you need to know that while people are “nice” they are also passive aggressive. That can be annoying if you let it. I don’t let it. I’m also going to add that sometimes there is a sense that MN has a lock on this attitude/behavior – NOPE. I lived in Atlanta. Land of “bless your heart” (“you idiot” = implied). I also did not find the famously hospitable south to be any more hospitable than any other place I’ve lived. People are people. You have to do the work when you’re new, it’s just a fact. That means you have to JOIN things and INVITE people to do stuff if you want to have friends outside of your house. I don’t think people are any more or less likely to knock on your door here and golly-gee you. Although I will say that when we moved here TWO of our neighbors dropped off food and offered a welcome. That IS two more than have ever done that anywhere else I’ve lived, so maybe it is nicer here?
Housing prices are high
It is not cheap to get into a home here. I don’t know if I’m the only one that was shocked by that information when I moved here, or not. Things are not easing at all, in fact they are getting worse as more buyers enter the market and the number of listings can’t meet the demand. People are staying in their homes longer, and here at least, people are reluctant to list until they have found a new place to live because the market is so tight that their home will be gone in a hurry and they may not find what they want from what is available. Add to all of that extremely low interest rates and people spending way too much time inside and you have demand that is insane. (If you’re thinking of listing – let me know lol! Not joking!) If you’ve ever taken a basic economics class you know that high demand + low supply = high prices.
I’m struggling to come up with anything else. I’m sure someone can help, ha ha! Comment below if you have a reason to stay the heck out of MN.
