03 Sep Weekly update for Minnesota real estate
Weekly update for Minnesota real estate
Jeff Anderson’s weekly update for our Minnesota real estate for August 28th, 2026. Lots of things to discuss today.
We will discuss the trends, stats and current trends
First, we review the trends of our Minnesota real estate market
Our summer Minnesota real estate market is ending and shifting to a neutral market. Unfortunately, rates have inched higher and we have more homes on the market.
The Federal Reserve would like to lower rates to help the economy, but inflation is holding those rate reductions at bay. The higher gas prices from the Iranian conflict will impact inflation and prices for our goods for months, if not much longer, and unfortunately that affects future interest rates. The end of this war is unknown so it is hard to predict when this will improve. The world waits impatiently for the Strait of Hormuz to open again for shipping and the price of oil and gasoline to come down.
In real estate it is extremely helpful to work with an experienced real estate agent. You can be assured you have an advantage when your real estate agent has over 30 years of experience. You will find real estate experience is priceless!
Next, we review the facts
Our current housing affordability Index for Minnesota real estate for July was 115 and that compares to 118 at this time last year. The higher the number equals greater home buying affordability. Our current inventory of homes for sale in the seven-county Twin Cities area is 11,904. IN comparison we had 10,921 at this time in last year. Inventory is up 9.3% for last 3 months and that number continues to increase. You might find it interesting that in 2009 when we had our first real estate correction in 40 years in Minnesota, and at that time we then had over 36,000 homes for sale. New pending sales for the past week were 960, and that is compared to 915 last year at this time.
An average real estate market we have a three-month supply of housing inventory. We now have a 3 month’s supply (July figures). Last year at this time 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 compares to 40 days last year.
Additional Minnesota real estate facts
The median sales price for July was $408,000 in the Twin Cities area. We are up 3.3 percent from 2025 at this time last year. The average sale to list price was 99.1% for this July and 99.3% last year. We still have a strong real estate market.
Current Twin Cities interest rates
We are at approximately 6.5% for conventional and 6% for FHA/VA. Rates have gone up as the result of the Iranian war and tariffs and what those have done to inflation.
What is the near-term trend for Minnesota real estate?
Suitable time to buy with inventory growing and less likelihood of multiple offers. Look for this market to continue until the holidays.
Ask me about a 2-1 buydown for your mortgage interest rates…suitable time to consider that program. We can then live with a lower rate now and refinance when rates go back down.
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
Sorry, the comment form is closed at this time.