22 May Minnesota real estate weekly update
Minnesota real estate weekly update
This is Jeff Anderson’s Minnesota real estate weekly update for May 22nd, 2026.
We review the real estate facts and future trends
First the trends of our real estate market
Our spring real estate season is here with a shift to a neutral real estate market. The federal reserve discussed interest rates at the last meeting and decided not to lower them because of the war and inflation. The higher gas prices from the Iranian conflict will impact inflation in a big way and affect future interest reductions as well. In fact there might be pressure to raise them.
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 April was 124. That compares to 116 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 9,999. That compares to 9,180 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 1,242, compared to 1,088 in the same week last year. Sales pending for the last 3 months are up 1.8% compared to last year.
We find in an average real estate market that we would have a three-month supply of housing inventory. We now have 2.6 months (April figures). Last year in April we had a 2.4 month supply. The average number of days on the market for the seven-county Twin Cities area was 57 days in April and that is compared to 50 days last year.
More Minnesota real estate facts
The median sales price for April was $392,000 in the Twin Cities area. That is down 2 percent from 2025 in April. The average sale to list price was 99.3% for April and that compares to 99.7% 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 6.375% for conventional and 6% for FHA/VA. These rates have gone up because of the Iranian war. Gas prices have risen with no let-up in sight and there will be a drain on our economy. The war will increase inflation so do not expect a decrease in interest rates anytime soon.
Lastly, what is the future of Minnesota real estate?
We are now in our busy spring real estate season. Inventory is increasing now but so are buyers in the market. The best homes in popular areas will continue to have multiple offers. This market is more of a neutral real estate market than we have seen in springtime in years.
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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