If you’ve been following national real estate news lately, you’ve probably seen some dramatic headlines: “Home Prices Are Falling!” or “The Housing Market Is in Decline!”
And while that’s true for many cities across the country… it’s not the story here in Minnesota.
Here in the Twin Cities, the housing market continues to hold steady — and even grow — while other once-red-hot markets cool off. What’s really happening as we head into fall 2025?
📉 The National Picture: Markets Cooling Down
Across the U.S., many of the cities that were booming in 2021 and 2022 are now seeing prices soften and homes sit longer on the market.
A recent report listed the top 10 cities with falling home prices (per redfin), and they included:
- Miami
- Austin
- San Diego
- Richmond, VA
- Boston
- San Antonio
- Dallas
- Denver
- Phoenix
- Sacramento
These are all markets that experienced major appreciation during the pandemic — and now, they’re seeing the other side of that cycle.
📈 The Minneapolis Story: A Very Different Trend
Meanwhile, here in the Twin Cities, things look much more balanced — and frankly, healthy.
The median price for previously owned single-family homes in our 7-county metro area is up 5% year-over-year, sitting at around $420,000.
Even more encouraging, new construction homes — which saw some price dips last year — have rebounded. The median price for a new construction single-family home is up 5.5%, landing just under $600,000.
So while national headlines sound gloomy, the Minneapolis market remains strong, steady, and appreciating at a sustainable pace.
🏠 Inventory: The Most We’ve Seen in Years
Let’s talk about inventory — because that’s where we’re really seeing movement.
As of early October, there are just over 8,000 active listings across the metro.
For comparison:
- October 2024: 7,700 active listings
- 2020: 6,000 active listings
- 2019 (our last “normal” year): 9,400 active listings
So while we’re not back to pre-pandemic levels, it’s a noticeable increase.
Every one of the seven metro counties now has more than two months of inventory, with Anoka County being the tightest at exactly two months.
This shift toward balance is a good thing. It means buyers have more choices, sellers need to be more strategic, and overall, the market feels more normal again.
💸 Price Reductions on the Rise — But Sales Are Still Strong
Another sign of a normalizing market? Price reductions.
Across the Twin Cities, we’re seeing roughly 1,000 price reductions every single day on active listings.
That doesn’t mean homes aren’t selling — it just means sellers and agents are adjusting to find that sweet spot where supply and demand meet.
When a home is priced correctly and shows well, it still sells. But gone are the days of “list it Friday, sold by Monday with 12 offers.” This is the kind of market where experience, pricing strategy, and presentation really matter.
Despite more price adjustments, we’re still ahead of last year in the number of total homes sold — proof that this is not a stalled market, just a balanced one.
🕰 Is It Smart to Try to “Time the Market”?
I get asked this a lot:
“Should I wait to buy until prices drop?”
“Should I hold off on selling until things heat back up?”
Here’s the thing — unless you have insider information the rest of us don’t, it’s nearly impossible to time the market perfectly.
Real estate is hyper-local. It’s not even just city by city — it’s neighborhood by neighborhood, sometimes block by block.
That’s why I always tell my clients: look at your personal timing, your finances, and your goals. Then make decisions based on that, not just the national headlines.
🌳 The Bottom Line: Minneapolis Is Steady and Strong
While other parts of the country are feeling the chill, the Twin Cities real estate market continues to show quiet confidence.
We have:
✅ Rising prices (5–5.5% year-over-year)
✅ Growing inventory but still healthy demand
✅ More balance between buyers and sellers
✅ A steady pace of sales
It’s not a “boom” or a “bust.” It’s a sustainable, smart market — and that’s exactly where you want to be.
If you’d like a more detailed look at what’s happening in your specific neighborhood or suburb, reach out! I love helping people who meet me on YouTube and my blog understand the real numbers behind the market.
And if you’re thinking about moving to Minnesota, grab my Free Relocation Guide — it’s linked below and packed with everything you need to know about living in the Minneapolis–Saint Paul area.
👋 I’m Mary Schumann, Realtor in the Twin Cities metro.
If you found this helpful, subscribe to my YouTube channel or reach out directly — I’d love to help you navigate our Minnesota market with confidence.
📍Free Minnesota Relocation Guide: https://maryschumann.kw.com/twin-cities-relocation-guide
