Key Market Statistics at a Glance
In November 2025, the housing market showed a distinct split between the statewide Minnesota trends and the specific Twin Cities metro performance:
- Median Sales Price: Both the state and the metro saw prices increase by 2.9%, reaching $350,000 statewide and $387,000 in the Twin Cities.
- New Listings: Seller activity remained resilient, with new listings up 2.4% statewide and edging up 0.1% in the metro (3,728 units).
- Buyer Activity: Pending sales dropped 1.7% statewide and 2.4% in the metro.
- Closed Sales: In the metro specifically, closed sales saw a more significant 5.6% decline compared to the previous year.
- Days on Market: Homes in the Twin Cities metro spent an average of 50 days on the market before an offer was accepted, which is flat compared to November 2024.
Market Dynamics: Inventory and Balance
While the market technically remains a seller’s market, it is trending toward a more balanced state.
- Inventory Levels: Metro inventory fell 1.7% to 9,209 units. Statewide inventory rose slightly by 1.5%.
- Months Supply: The Twin Cities currently has a 2.4-month supply of homes, while the state has 2.7 months.
- Equilibrium: Experts note these supply levels are the most balanced the market has been in about five years, though a truly balanced market typically requires five to six months of supply.
Shifting Buyer Preferences
Higher costs are causing buyers to adjust their expectations and look for affordability in different segments:
- Condo Growth: Statewide condo sales increased by nearly 16.0%, likely because they offer a more accessible entry point for buyers focused on monthly payments.
- Luxury Market Surge: Interestingly, the high-end market remains very active, with $1M+ sales increasing by 23.5%.
- Payment Over Price: Today’s buyers are increasingly focusing on the monthly payment rather than the list price, with a typical monthly payment on a median-priced home in the metro sitting around $2,850.
Economic Headwinds and Future Outlook
Despite a drop in mortgage rates—averaging 6.25% compared to 6.8% last year—buyers are facing broader economic pressures, including rising inflation and a slowing labor market. However, there is significant optimism for the coming year:
- Hot Spot Status: A recent study by Realtor.com named the Twin Cities as one of the top 10 hot spots for housing in 2026, citing a healthy balance between local incomes and home prices.
- Rate Dependency: The market remains highly “rate dependent.” A slight further decline in interest rates could be the catalyst that brings discouraged buyers back into the market.
In the current environment, the real estate market is like a scale slowly finding its center; while sellers still hold a slight advantage due to tight inventory, the increasing choices for buyers and stable market times suggest we are moving away from the frantic pace of previous years toward a more sustainable rhythm.
Have questions about these numbers? The market is shifting toward balance, but every neighborhood in the Twin Cities is moving at a different speed. Whether you’re curious about your home’s equity or you’re looking to find a deal on a condo this winter, I’m here to help you make sense of the data.
Let’s grab coffee and talk about your goals. 📞 Call/Text Bob: 952-334-8225 📧 Email: bob@beekeeperrealty.com