This Will Be WORSE Than A Housing Market Crash In Minneapolis
About this video
Is the Minneapolis housing market about to crash in 2026? Home prices are rising, but properties are taking longer to sell. Discover 10 warning signs affecting Minneapolis homeowners, including rising property taxes, insurance costs, buyer competition, home inspections, and local selling requirements.
Key takeaways
- Minneapolis isn't crashing; it's sorting. In July, the city's median sale price was $375,000 (up 5.9%), closed sales rose 16.7% and pending sales 9.8%, but homes took about 41 days to sell, and about 53 in August, against about 28 a year earlier.
- Buyers have more choice. The metro had more than 11,500 homes for sale in July (up 6.7%), Minnesota had more than 20,000, the most in seven years, and Minneapolis had about 3.1 months of supply. A home has to win on price and condition.
- Activity is strongest at the top: Minnesota sales over $1 million rose 18%, while pending sales under $400,000 rose 3.7%. Four-bedroom homes outpaced two-bedroom homes.
- Property tax levies are rising. As of the video, Minneapolis had proposed an 11.3% levy increase for 2027 (final budget in December), and Ramsey County, Saint Paul and Dakota County had proposed increases too.
- Minnesota home insurance rose about 34% in 2025, to an average of about $3,530 a year. Many policies now use percentage wind and hail deductibles: 2% on a home insured for $400,000 is $8,000.
- Under Minn. Stat. 513.55, sellers must disclose known material facts, including anything a buyer's inspection reveals if that deal falls apart. Testing for radon before listing avoids a surprise mid-deal.
- Condo sales depend on the building: buyers get the resale disclosure certificate (Minn. Stat. 515B.4-107) and association financials, and can cancel within a short window after receiving them.
- Several cities, including Minneapolis, Saint Paul, Richfield, Bloomington and St. Louis Park, require a Truth-in-Sale-of-Housing evaluation before listing, and the report is public. Fix common items like backflow preventers, smoke and carbon monoxide detectors, broken windows and peeling paint first.
Questions this video answers
What is a Truth-in-Sale-of-Housing evaluation?
A pre-listing evaluation some Minnesota cities require, including Minneapolis, Saint Paul, Richfield, Bloomington and St. Louis Park. The seller hires a city-licensed evaluator, the report becomes public, and required repairs must be made or taken on by the buyer. It doesn't replace a buyer's own inspection.
Do I have to test for radon when selling a home in Minnesota?
Minnesota doesn't require a test, but sellers must disclose radon test results and mitigation systems they know about. Testing before you list lets you deal with a high reading on your own schedule instead of mid-deal.
Why are homes taking longer to sell in Minneapolis?
More homes are for sale, so buyers can be pickier, and higher rates, insurance and property taxes stretch budgets. Homes that win on both price and condition still sell quickly.
Read more: Sell your home · Minneapolis market report
Notes written by Huerkamp Home Group from this video. Figures are as stated in the video on October 9, 2026; check the current numbers in our market reports.
