Minneapolis Homeowners Are Finally Selling | Twin Cities Housing Market
About this video
After years of homeowners holding onto ultra-low mortgage rates, the Twin Cities housing market is finally moving again. Listings jumped, inventory reached a multi-year high, and homeowners started selling even without a major drop in mortgage rates.
This video breaks down what changed, how home equity is helping sellers move, and what the shifting Minneapolis housing market means for buyers and sellers.
Key takeaways
- For four years, owners with 2% and 3% mortgages stayed put because moving to a 6.5% rate raised the payment 35% to 40%. That froze the market.
- In June 2026 the standoff broke without any rate cut. Twin Cities new listings jumped about 10%, metro inventory reached almost 11,000 homes, and statewide inventory topped 19,000, a seven-year high.
- The reason was equity: the metro median is up about 17% since 2021, so many owners can make a bigger down payment and keep the next payment manageable even at today's rates.
- Buyers absorbed the new supply: pending sales rose 9.7% and closings 10.7%, with about 5,600 homes closing in June, and the metro median reached a June record of $410,000.
- Selling got harder: homes averaged 42 days on market (up from 39), and sellers received 99.6% of their original list price, down from 100%. Price honestly from day one and present the home well.
- Three questions decide whether to move now: what you still owe, what you'd realistically buy next, and how your home compares with what's for sale near you.
Questions this video answers
Should I give up a 3% mortgage rate to move?
It depends on your equity. With Twin Cities prices up about 17% since 2021, many owners can put more down on the next home and keep the payment workable even at around 6.5%. Run the numbers with your payoff and your next home's price.
Are home prices falling in the Twin Cities?
No. Even with inventory at a multi-year high, the metro median reached a June record of $410,000. Homes are taking a bit longer to sell and sellers are negotiating more.
Read more: Twin Cities market report · What's my home worth?
Notes written by Huerkamp Home Group from this video. Figures are as stated in the video on August 25, 2026; check the current numbers in our market reports.
