Thinking about buying or selling a home in the Minneapolis area in 2025? If so, you're probably wondering what the market has in store for us. Based on the latest data it looks like the Minneapolis housing market in 2025 is shaping up to be a mixed bag, with slight price increases and more homes hitting the market, but a dip in sales. Let me tell you, as someone who's been keeping a close eye on real estate trends here, this is an interesting shift to watch.
It’s easy to get caught up in the headlines, but digging into the actual numbers gives us a much clearer picture. I’ve been following these reports closely, and July 2025 data for the 16-county Twin Cities region offers some key insights. We're seeing a noticeable uptick in new listings, which is great news for buyers tired of the limited choices.
However, closed sales are actually down a bit. This might sound a little confusing at first, but it often means that while more homes are available, they might be taking a bit longer to sell or perhaps the types of homes available aren't a perfect match for everyone right now.
MINNEAPOLIS HOUSING MARKET 2025: What to Expect as Summer Heats Up
A Deeper Dive into the Numbers (July 2025 vs. July 2024)
Let's break down what the Minneapolis Area Realtors® data for July 2025 is telling us compared to July 2024 across the 16-county Twin Cities region:
- New Listings: We saw an increase of +5.8%, with 6,770 new homes listed in July 2025, up from 6,399 in July 2024. This is a positive sign for buyer inventory.
- Closed Sales: Conversely, closed sales dropped by -1.7%, from 4,589 in July 2024 to 4,510 in July 2025. This might be an indicator of buyers needing more time to make decisions or perhaps a slight mismatch between what's available and what buyers are looking for.
- Median Sales Price: The median sales price went up by +2.6%, reaching $395,000 in July 2025, a nice climb from $385,000 in July 2024. This shows continued, albeit moderate, appreciation.
- Average Sales Price: Following the trend, the average sales price also rose by +2.8%, moving from $460,612 in July 2024 to $473,376 in July 2025.
- Price Per Square Foot: On average, homes are selling for $217 per square foot in July 2025, a slight increase of +0.8% from $215 last year.
- Percent of Original List Price Received: We're seeing a slight dip here, down -0.2% to 99.3% in July 2025 compared to 99.5% in July 2024. This suggests sellers might be a little more open to negotiation or that initial pricing is becoming more aligned with market value.
- Days on Market Until Sale: Homes are staying on the market a bit longer, with an increase of +11.1%. This means it took an average of 40 days to sell a home in July 2025, compared to 36 days in July 2024. This aligns with the slight decrease in closed sales and points to a more balanced market where buyers have a bit more breathing room.
- Inventory of Homes for Sale: The inventory saw a modest increase of +1.8%, with 10,195 homes available in July 2025, up from 10,017 in July 2024. This is a welcome expansion of choices for potential buyers.
- Months Supply of Inventory: The months supply of inventory remained steady at 2.7 months, indicating a continued seller-leaning market, though the increase in new listings could shift this balance over time.
The Bigger Picture: Rolling 12 Months of Trends
Looking at the rolling 12-month data gives us a broader perspective beyond just July. These figures smooth out any month-to-month fluctuations and show us the general direction the Minneapolis housing market is heading.
| Metric | July 2024 | July 2025 | Change (July 2024 vs. July 2025) | Rolling 12 M s 2024 | Rolling 12 M s 2025 | Change (12 Mos) |
|---|---|---|---|---|---|---|
| New Listings | 6,399 | 6,770 | +5.8% | 63,488 | 66,484 | +4.7% |
| Closed Sales | 4,589 | 4,510 | -1.7% | 45,208 | 45,645 | +1.0% |
| Median Sales Price | $385,000 | $395,000 | +2.6% | $375,000 | $386,000 | +2.9% |
| Average Sales Price | $460,612 | $473,376 | +2.8% | $443,394 | $460,318 | +3.8% |
| Price Per Square Foot | $215 | $217 | +0.8% | $210 | $213 | +1.9% |
| % of Original List Price | 99.5% | 99.3% | -0.2% | 98.9% | 98.7% | -0.2% |
| Days on Market Until Sale | 36 | 40 | +11.1% | 42 | 48 | +14.3% |
| Inventory of Homes | 10,017 | 10,195 | +1.8% | — | — | — |
| Months Supply of Inventory | 2.7 | 2.7 | 0.0% | — | — | — |
The rolling 12-month numbers show a similar story: an increase in new listings and a slight uptick in closed sales over the longer term, indicating a more consistent supply. Median and average sales prices continue their upward trend, suggesting that even with more homes available, demand is still strong enough to support modest price growth. The fact that homes are taking longer to sell, both in July and over the past year, is a key indicator that the market is becoming more balanced. This is a good thing for both buyers and sellers. Buyers have more options and a little less pressure, while sellers might need to be more strategic with their pricing and presentation.
My Take: What Does This Mean for You?
From my perspective, the MINNEAPOLIS HOUSING MARKET 2025 is moving towards a more sustainable and less frenzied pace than we've seen in some of the peak years. The increase in new listings is a breath of fresh air for many potential buyers who have struggled with limited inventory. It means you might finally be able to find that perfect place without facing dozens of other offers.
However, don't mistake more choice for a buyer's free-for-all. The median sales price is still climbing, albeit at a more measured pace. This suggests that well-priced and desirable homes will still attract multiple offers, but overall, competition might be less intense. The increase in days on market is a crucial piece of data for both sides.
- For Buyers: This is your moment to be strategic. You have more time to explore your options, conduct thorough inspections without feeling rushed, and negotiate with less pressure. Take advantage of the increased inventory. Don't be afraid to make a well-researched offer that reflects the home's value and your budget.
- For Sellers: While the market is still favorable, thinking of it as a gentle seller's market rather than a hyper-competitive one is wise. Pricing your home correctly from the start is more important than ever. Consider making any necessary updates or repairs to make your listing stand out. The longer days on market mean that buyers have more time to compare, so presenting your home in its best possible light is key.
It's also worth noting that while the overall numbers paint a picture of the region, specific neighborhoods within the Twin Cities will have their own unique trends. Some areas might be experiencing faster growth or slower sales than the average. That's where working with a knowledgeable local real estate agent becomes invaluable. They can provide hyper-local insights that generalize data just can't capture.
The Minneapolis housing market in 2025 isn't signaling a crash; rather, it's showing signs of maturation and a return to more predictable patterns. It’s shaping up to be a market where smart decisions, careful planning, and a realistic understanding of current conditions will lead to success for both those looking to buy and those looking to sell.
Minneapolis Housing Market Forecast 2025-2026
It’s a natural question to wonder what’s next for the Minneapolis housing market forecast. Well, based on the latest information I’ve gathered, it looks like things are pretty steady right now, with average home values around $390,235 in the Minneapolis-St. Paul-Bloomington area and homes are selling quickly, often going pending in just 18 days. While we've seen a modest 1.6% increase in value over the past year, the prediction leans towards slight growth early on, potentially followed by a small dip later next year. It's not a crystal ball, but it gives us a good picture!
As someone who keeps a close eye on our local real estate scene, I know how important it is to understand these trends. Let’s break down what the experts are saying and what it could mean for you.
Digging into the Numbers: Minneapolis Forecast
Zillow recently shared some predictions (their MSA – Metropolitan Statistical Area – forecast) that give us specific milestones to look at. Remember, these are percentages indicating predicted price changes:
- Late Summer 2025 (August): Zillow forecasts a slight price increase of 0.2%. This suggests things will stay relatively stable as we move through the summer peak season.
- Late Fall 2025 (October): The forecast holds steady with another predicted increase of 0.2%. This indicates continued stability in the short term.
- Mid-2026 (July): Looking out a full year from mid-2025, the prediction shifts to a decrease of -1.5%. This is the part that signals a potential minor cooling or correction after the earlier stability.
From my perspective, these numbers suggest a market that might start strong but could face slight downward pressure as we head into the second half of 2026. This could be influenced by various factors, including mortgage rates and overall economic conditions. A 1.5% dip isn't a crash, but it’s a noticeable change from the consistent growth we often see.
How Minneapolis Stacks Up Locally
It’s always interesting to see how our area compares to others in Minnesota. Based on the data I have, here’s a look at the Minneapolis Housing Market Forecast compared to other regions:
| City/Region | Aug 2025 Price Change % | Oct 2025 Price Change % | Jul 2026 Price Change % |
|---|---|---|---|
| Minneapolis, MN | 0.2% | 0.2% | -1.5% |
| Duluth, MN | 0.4% | 0.5% | 0.7% |
| Rochester, MN | 0.3% | 0.3% | -0.4% |
| St. Cloud, MN | 0.2% | 0.3% | 0.6% |
| Mankato, MN | 0.4% | 0.7% | 0.4% |
| Brainerd, MN | 0.2% | 0.4% | 1.6% |
| Faribault, MN | 0.3% | 0.5% | 0% |
Looking at this table, Minneapolis seems to have a similar pattern to Rochester, showing slight early stability followed by a predicted small decline. Other areas like Duluth and Mankato show more consistent positive predictions through mid-2026, while Brainerd is predicted to see stronger growth by mid-2026. It seems Minneapolis might be leading a slight cooling trend compared to some other parts of the state.
The National Picture: What’s Happening Across the US?
Nationwide, the outlook from Lawrence Yun, the Chief Economist at the National Association of Realtors (NAR), is quite positive. He anticipates:
- Existing Home Sales: Up by 6% in 2025 and 11% in 2026. More people buying and selling!
- New Home Sales: Climbing by 10% in 2025 and 5% in 2026. Good news for supply.
- Median Home Prices: A modest rise of 3% in 2025 and 4% in 2026. Sustainable growth.
- Mortgage Rates: Expected to ease, averaging 6.4% in late 2025 and dipping to 6.1% in 2026. Yun sees this as a huge boost for buyers.
This national optimism contrasts a bit with the slightly negative forecast for Minneapolis by mid-2026. It suggests that while the US market might see overall price appreciation, local markets like ours could experience fluctuations. The expected drop in mortgage rates nationally is key; if that happens, it could certainly impact Minneapolis positively, potentially softening that predicted dip.
Will Minneapolis Home Prices Crash in 2026?
Based on the data, I personally don’t see evidence pointing towards a crash in the Minneapolis market. A predicted drop of -1.5% by mid-2026 is a leveling off or a slight pullback, not a collapse. Crashes typically happen when there's a significant imbalance, like massively high inventory or widespread economic hardship leading to forced sales. The national trends suggest recovery and moderate growth, supported by potentially lower mortgage rates and increased sales volume. While Minneapolis might see a minor price correction, it appears more like a return to more normal market conditions rather than a dramatic downturn.
My Take on the 2026 Minneapolis Market
So, what’s my final thought on the Minneapolis housing market forecast for 2026? I think we'll likely see a market that’s more balanced than the frenzy of previous years. Buyers might have a bit more breathing room, especially if mortgage rates continue to fall nationally. Sellers might need to be realistic about pricing, but homes selling in just 18 days suggests demand is still solid. The slight dip predicted for mid-2026 could present opportunities for buyers who were previously priced out. Overall, steady seems to be the keyword, with potential for gentle adjustments rather than major shocks.
Should You Invest in the Minneapolis Real Estate Market?
Minneapolis, located in the state of Minnesota, is a major economic hub in the Midwest region of the United States. The city has a diverse economy with major industries including healthcare, finance, and manufacturing. With a population of over 400,000 and a metro population of over 3.6 million, Minneapolis has a strong demand for housing. If you are considering investing in real estate, here are 5 reasons why Minneapolis might be a good place to invest:
- Strong Rental Property Market: The rental property market in Minneapolis is strong, with high occupancy rates and steady rent growth. The city has a large number of renters, including students from the University of Minnesota, young professionals, and families. Additionally, the city has a strong job market, which supports a steady demand for rental properties.
- Diverse Economy: Minneapolis has a diverse economy that is not dependent on any one industry. The city is home to several Fortune 500 companies, including Target, Best Buy, and General Mills. The city's strong economy supports a steady demand for housing. The Metropolitan Council projects that Minneapolis will add 41,500 jobs by 2040, with much of the growth occurring in downtown Minneapolis.
- Affordable Real Estate Prices: Compared to other major cities in the United States, Minneapolis has relatively affordable real estate prices. This makes it an attractive market for real estate investors looking to maximize their return on investment.
- Strong Housing Market: Despite some recent fluctuations, Minneapolis has a strong housing market. According to Zillow, the median home value in Minneapolis hovers around $285K. Additionally, Minneapolis has a relatively low foreclosure rate, which indicates a stable market.
- Growing Population: The population of Minneapolis has been growing steadily over the past decade, driven by both natural growth and migration. This growing population supports a steady demand for housing in the city. The metro area population of Minneapolis (2024) is 3,014,000, a 0.8% increase from 2023. The metro area population of Minneapolis in 2023 was 2,990,000, a 0.78% increase from 2022. The metro area population of Minneapolis in 2022 was 2,967,000, a 0.71% increase from 2021.
- Big Student Market: One of the factors that make Minneapolis a great place for real estate investment is the massive student market. With the presence of several major universities and colleges, including the University of Minnesota, Minneapolis Community and Technical College, and Augsburg University, there is a large population of students in the area. These students require housing, which presents an opportunity for real estate investors to invest in rental properties. Investing in rental properties in Minneapolis can be a lucrative business as the demand for student housing is usually high. Additionally, the student market in Minneapolis is not limited to traditional students. The city also has a large number of professionals and individuals pursuing advanced degrees who require housing. This diverse population provides real estate investors with a wide range of opportunities to invest in rental properties.
- The Landlord-Friendliness of Minneapolis: Minneapolis is known for its pro-landlord laws and regulations, which provide a stable and predictable environment for property owners. This means that landlords have more control over their properties and can protect their investments more effectively. For example, the city has laws in place that allow landlords to evict tenants for non-payment of rent or other violations of the lease agreement. This can give landlords peace of mind knowing that they can take action if necessary to protect their property and rental income. Furthermore, the city has relatively low property taxes and a streamlined process for obtaining permits and licenses, making it easier for landlords to manage their properties. Additionally, the city's rental market is strong, with a high demand for rental properties due to the growing population and a large number of college students in the area. As a result, landlords in Minneapolis can expect to receive a steady stream of rental income, making it a desirable market for real estate investment.
