Sellers Losing Money In Minneapolis | Here's What's Actually Happening
About this video
The Minneapolis housing market isn’t crashing, but some sellers are still losing money. Home prices remain high while listings sit longer, buyers negotiate harder, and pandemic-era purchases create difficult financial situations. Here’s what’s actually happening with Minneapolis sellers and what buyers need to understand before making an offer.
Key takeaways
- The Twin Cities market isn't crashing: the metro median sale price reached a record of about $410,000, with Minneapolis itself in the mid to high $300,000s. Homes are taking longer to sell (about 42 days, almost 8% longer than a year earlier), and price cuts are common.
- Many sellers who won't come down bought in 2020 to 2022, when prices rose fast. After paying the costs of selling, they may be close to breaking even, so a $20,000 price cut can mean bringing money to closing.
- Jason estimates the cost of selling at 8% to 10% of the price, including agent fees, closing costs, repairs and getting the home ready: $30,000 to $40,000 on a home in the $400,000s.
- Low mortgage rates keep owners in place. Research Jason cites finds each percentage point between an owner's rate and today's rate makes them about 18% less likely to sell.
- Owners who bought after spring 2022 at 7% or higher aren't held by their rate but by the price they paid. They're motivated but stuck.
- For buyers: ask what the seller needs in order to sell, not just what the home is worth. Their purchase date and likely loan balance shape which offers can work.
- For anyone buying now: know your exit plan, build in room for selling costs, and don't let a deadline make the decision.
Questions this video answers
Is the Minneapolis housing market crashing?
Not according to the numbers in this video: the metro median sale price hit a record of about $410,000. Homes are taking longer to sell and price cuts are more common, so buyers have more room to negotiate than in 2020 to 2022.
How much does it cost to sell a house in the Twin Cities?
Jason estimates 8% to 10% of the sale price once agent fees, closing costs, repairs and preparation are added up, or $30,000 to $40,000 on a home in the $400,000s. Ask for a net sheet with your own numbers.
Why won't some sellers lower their price?
Many bought near the 2020 to 2022 peak. After selling costs, a lower price could mean bringing money to closing, so they hold out for a number that lets them walk away clean.
Read more: Sell your home · Twin Cities market report
Notes written by Huerkamp Home Group from this video. Figures are as stated in the video on September 5, 2026; check the current numbers in our market reports.
