18 Jul Minnesota real estate weekly update
Minnesota real estate weekly update
This is Jeff Anderson’s Minnesota real estate weekly update for July 18th, 2026.
We review the real estate facts and future trends
First the trends of our real estate market
Our summer real estate season is here with a shift to a seller’s real estate market. The federal reserve discussed interest rates at the last meeting and decided not to lower them because of war and inflation. The higher gas prices from the Iranian conflict will impact inflation for months, if not years, and affect future interest reductions as well.
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 May was 119. 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 11,203. That compares to 10,364 at this time in 2025. So, inventory is up 8.1%. 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 952, compared to 934 in the same week last year. Sales pending for the last 3 months are up 9.4% 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 2.8 months (May figures). Last year in May we had a 2.7-month supply. The average number of days on the market for the seven-county Twin Cities area was 45 days in May and that is compared to 44 days last year.
More Minnesota real estate facts
The median sales price for May was $399,900 in the Twin Cities area. That is up 1.2 percent from 2025 in May. The average sale to list price was 99.7% for May and that compares to 100% in 2025. Those figures represent a strong real estate market. 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 increased inflation so do not expect a decrease in interest rates soon.
Lastly, what is the future of Minnesota real estate?
We are now in our busy summer 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 and short days on the market.
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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