Minneapolis Housing Market Just Shifted
About this video
The Twin Cities housing market just shifted with rising inventory, fewer bidding wars, longer days on market, and major changes across Minneapolis and St. Paul real estate. This video breaks down Twin Cities housing trends, interest rates, new construction incentives, pricing strategy, condos vs single-family homes, and what buyers and sellers need to know heading into 2026.
Key takeaways
- As of mid-November 2025, the Twin Cities had more than 10,000 active listings, about 2.7 months of supply: more choice for buyers than at any time since the pandemic, though still short of a traditional balanced market.
- By type: single-family homes had about 2.5 months of supply, townhomes about 3 and condos about 5, making condos the softest segment. Downtown Saint Paul condos averaged about 99 days on market.
- Builders are the big competition: about two-thirds offer strong incentives, such as rate buydowns near 5% versus 6.25% to 6.5% for resale, worth $20,000 to $40,000 or more. Dated homes that need work are hit hardest.
- Buyers: concessions, repair credits, home warranties and inspections are back. Target homes on the market 25 to 40 days, compare monthly payments rather than list prices, and budget $10,000 to $25,000 for new-construction extras like decks, landscaping and blinds.
- A seller-paid rate buydown of about $15,000 can lower your payment more than a $30,000 price cut, according to Jason.
- Sellers: the first two weeks decide most of the outcome. Homes priced about 5% over market sat about 60 days longer on average. Paint, lighting and carpet pay off, and a price $20,000 to $40,000 below comparable new construction, or a buydown offer, helps you compete.
- Move-in-ready homes in popular suburbs still sold in about 14 to 23 days when priced right, and luxury homes over $1 million saw days on market drop about 10%.
Questions this video answers
Is the Twin Cities housing market slowing down?
It's more balanced, not crashing. Inventory rose to about 2.7 months of supply in late 2025, bidding wars are rarer, and condos are softest, but well-priced, move-in-ready homes in popular suburbs still sell in two to three weeks.
Is a rate buydown better than a price cut?
Often, for your monthly payment. Jason notes a $15,000 seller-paid buydown can lower the payment more than a $30,000 price reduction. Run both with your lender.
Read more: Twin Cities market report · Sell your home · Newest homes
Notes written by Huerkamp Home Group from this video. Figures are as stated in the video on January 23, 2026; check the current numbers in our market reports.
