28 Aug Minnesota real estate weekly update
Minnesota real estate weekly update
This is Jeff Anderson’s Minnesota real estate weekly update for August 28th, 2026. We have much to review.
We review the real estate facts, stats and future trends
First the trends of our real estate market
We are in our summer season with fall right around the corner and have a new shift to a neutral market. Rates have inched higher and we have more homes on the market.
The Federal Reserve is concerned about inflation so we are waiting to see what steps they might take in the months ahead. The higher gas prices from the Iranian conflict will impact inflation for months, if not a year, and unfortunately affect future interest rates. This war end is unknown so hard to speculate when this will improve. The world waits for the Strait of Hormuz to open again for shipping.
In this ever-changing MN real estate market, it is important to work with an experienced real estate agent. You can trust you have an advantage when your real estate agent has over 30 years of experience. Real estate experience is priceless!
The facts
Our current housing affordability Index for Minnesota real estate for July was 115. 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 11,805. That compares to 10,835 at this time in 2025. So, inventory is up 9.1% for last 3 months. 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 1,046, compared to 1,034 in the same week last year. Sales pending for the last 3 months are up 6% 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 3 months (July figures). Last year in July we had a 2.8 month supply. The average number of days on the market for the seven-county Twin Cities area was 40 days in July and that is compared to 40 days last year.
More Minnesota real estate facts
The median sales price for July was $408,238 in the Twin Cities area. That is up 3.4 percent from 2025 in July. The average sale to list price was 99.1% for July and that compares to 99.3% 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 6.5% for conventional and 6% for FHA/VA. These rates have gone up because of the Iranian war. Gas prices and tariffs have increased inflation so do not expect a decrease in interest rates soon.
Lastly, what is the future of Minnesota real estate?
Inventory is increasing now and so it is a suitable time to buy. Ask me about a 2-1 buydown for your mortgage interest rates…suitable time to consider that program.
This is a suitable time to discuss your housing needs for 2026 and 2027!
Jeff Anderson
The Anderson Team
www.mnrealestate.com
RE/MAX RESULTS
612-386-8600
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