27 Dec Minnesota real estate weekly update
Minnesota real estate weekly update
This is Jeff Anderson’s Minnesota real estate weekly update for December 27th, 2025. We have much to talk about.
We review the real estate facts and future trends
The trends of our real estate market
We are in our winter real estate season with buyers and sellers and in a neutral market with it starting to slow down, soon it will turn into a buyers’ market for the heart of the winter. But inventory is lower than the spring during this period. The federal reserve reduced rates by a quarter of a point earlier this month as expected but hinted nothing was guaranteed for the spring even though unemployment continues to rise.
In this MN real estate market, it is important to work with an experienced real estate agent. You can imagine the advantage you have when your agent has over 30 years of experience. Real estate experience is priceless!
The facts
Our current housing affordability Index for Minnesota real estate for November was 121. That compares to 118 at the same time last year. The higher the number equals greater home buying affordability in the Minneapolis/St. Paul area. The current inventory of homes for the seven-county area that is for sale is 8,875. That compares to 8,953 at this time in 2024. An interesting fact, in 2009 when we had our first real estate correction in 40 years in Minnesota, we then had over 36,000 homes for sale. Pending sales for the past week were 545, compared to 664 in the same week last year. Sales pending for the last 3 months are 1 percent less than last year, and that number has been decreasing.
We find in an average real estate market that we would have a three-month supply of housing inventory. We now have 2.4 months (November figures). Last year in November we had a 2.5 month supply. The average number of days on the market for the seven-county Twin Cities area was 50 days in November and that compares to 50 days last year.
More Minnesota real estate facts
The median sales price for October was $386,647 in the Twin Cities area and that is 2.8% more than last year at this time. The average sale to list price was 97.4% for November and that compares to 97.6% in 2024. To see more Minnesota real estate market information visit my website at https://www.mnrealestate.com/twin-cities-information/area-appreciation-rates/. You will find comprehensive and up-to-date facts about our Minnesota real estate market!
Our current interest rates in the Twin Cities
We are about 5.875% for conventional and 5.5% for FHA/VA. We are hoping for rates to come down a little more at the start of next year.
What is the future of Minnesota real estate?
We are now in our slower winter season. This is a wonderful time to buy since there is a reduced chance of multiple offers and sellers are motivated.
This is a suitable time to discuss your housing needs for 2026!
Jeff Anderson
The Anderson Team
www.mnrealestate.com
RE/MAX RESULTS
612-386-8600
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