Minnesota real estate weekly update

15 Feb Minnesota real estate weekly update

Minnesota real estate weekly update

This is Jeff Anderson’s Minnesota real estate weekly update for February 15th, 2026.

We review the real estate facts and future trends

First the trends of our real estate market

We are in our winter but our spring real estate season with a shift to a seller’s market. The federal reserve recently discussed interest rates and decided not to lower them as tariffs are affecting inflation and with so much uncertainty around our foreign policy and internal turmoil with ICE activity, they want to see how this all will affect our economy. But with the just released jobs, unemployment and inflation reports there is more optimism now for a small interest rate reduction of .25 basis point at the next Federal Reserve meeting on March 17 and 18.

In this ever-changing MN real estate market, it is important to work with an experienced real estate agent. You can trust you have advantage you have when your agent has over 30 years of experience. Real estate experience is priceless!

Next the facts

Our current housing affordability Index for Minnesota real estate for December was 128. That compares to 125 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 7,477. That compares to 7,508 at this time in 2025. 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. Sales made for the past week were 591, compared to 700 in the same week last year. Sales pending for the last 3 months are down 7 percent compared to last year, and that number has been consistently decreasing.

We find in an average real estate market that we would have a three-month supply of housing inventory. We now have 2 months (December figures). Last year in December we had a 2-month supply. The average number of days on the market for the seven-county Twin Cities area was 58 days in December and that compares to 56 days last year.

More Minnesota real estate facts

The median sales price for December was $380,000 in the Twin Cities area and that is 2.7% more than last year at this time. The average sale to list price was 96.8% for December and that compares to 97% in 2025. 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 5.75% for conventional and 5.375% for FHA/VA. We are hoping for rates to come down a little more at the start of next year.

 Lastly, what is the future of Minnesota real estate?

We are now in our busy spring real estate season. Inventory will increase now but so will buyers in the market and the best homes will have multiple offers.

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