Home listings increase while buyer activity cools for second month

(Dec. 15, 2025) – According to new data from the Minnesota state and Twin Cities metro REALTOR® Associations, seller activity was up while buyer activity was down in November. Prices were up, with market times flat.

Sellers, Buyers and Housing Supply

Sellers were once again more active than buyers in November, which has been a theme throughout most of the year and has enabled some inventory growth. Sellers with built-up equity are rolling it into the next property, while first-time buyers are struggling to break into the market. The increase in new listings came from the existing single-family segment as townhomes, condos and new construction were all down compared to last year. But buyer activity shifted in November. Single-family sales were down 0.6% while condo sales were up nearly 16.0% statewide—perhaps reflecting better affordability in the condo segment. “Today’s home buyers are looking for both a home and a monthly payment that meet their needs,” said Patti Jo Fitzpatrick, President of Minnesota Realtors^®. “We’re seeing buyers explore a wider range of neighborhoods, styles, and property types than they would have considered a few years ago. Meanwhile, multiple offer scenarios have become less common, but most sellers are still achieving their asking price.”

“Prospective home buyers are hopeful but realistic heading into 2026,” according to Frank D’Angelo, President of Minneapolis Area REALTORS^®. “They understand inventory remains tight and, even at one-year lows, mortgage rates still feel elevated.” With rates remaining near those one-year lows, the second consecutive month of softening demand likely reflects broader economic pressures—including a slowing labor market, rising inflation, and consumer confidence at Great Recession levels, on top of student loan payments and higher insurance costs.

Despite our challenges, a recent Realtor.com study out this month included the Twin Cities as one of the top 10 hot spots for housing in 2026. Several factors were cited as part of the analysis, including a better balance between local incomes and home prices, some room to grow, favorable demographics and an expanding local economy. The study also mentioned a high number of households sitting right on the edge of affordability—meaning a slight decline in interest rates could enable more households to achieve homeownership compared to other regions. The average 30-year mortgage rate stayed around 6.25% compared to 6.8% last November. If the economy can remain resilient and inflation cools, better affordability will bring some discouraged buyers off the bench and onto the dance floor.

And they’ll mostly find more choices during their search. Inventory levels rose 1.5% statewide but fell 1.7% in the metro last month but are up 8.9% and 6.0% respectively year over year. With 2.7 and 2.4 months of supply in the state and metro, both technically remain sellers’ markets but they’re the most balanced they’ve been in about five years. Roughly five to six months of supply is considered a balanced market.

Market segmentation

Pending sales activity in October varied widely by segment based on analysis of 97% of statewide data:

• New pending home sales were down 9.1% while existing sales were up 0.6%
• Single-family sales were down 0.6%, condo sales increased 15.7% and townhome sales fell 5.1%
• Sales <$500K fell 0.2%; sales between $500K-1M declined 3.5%; $1M+ sales increased 23.5%
• Traditional sales decreased 0.6% while lender-mediated sales were up 25.0% (from 52 to 65)
• Sales under 1,800 ft² rose 1.1% while sales over 1,800 ft² fell 1.5%

Market activity also varies by region, city and neighborhood. “Sales in St. Paul were up over seven percent while sales in Minneapolis were down more than 20 percent,” said Jennifer Livingston, President of the Saint Paul Area Association of REALTORS^®. “This may reflect the price differential, but overall buyers remain resilient and we’re proud to have a more affordable housing stock compared to other parts of the country.”

Prices, Market Times and Negotiations

Statewide home prices rose 2.9% to $350,000 while the metro home price also increased 2.9% but to $387,000. These days most buyers focus more on payment than price. A typical monthly payment on the median-priced home was roughly $2,850 for the metro and $2,630 statewide (metro included).

Metro homes spent 50 days on market on average, which was flat with last November. Statewide market times were 56 days and 3.7% higher than last year.* This measure also varies widely by area and segment. For example, single family homes spent 53 days on market statewide while condos took 101 days to sell. In October, sellers statewide accepted 96.7% of their list price compared to 97.4% for the metro.

Rates have come down recently in part due to a slowing labor market. With the government reopened, backlogged data will slowly be released. Ultimately, the housing market remains “rate dependent,” rates are “Fed and bond market dependent,” and the Fed and bond market are “data dependent.” The Federal Reserve’s December 10 rate cut was widely expected and didn’t move mortgage markets much. The 10-year yield tends to drive mortgage rates and is one of many indicators to watch moving into the new year.

*The difference in reported days on market used here is due to differing MLS calculation methods. Statewide data combines multiple MLS sources that do not all use the same methodology, while metro data uses NorthstarMLS cumulative days on market. For consistency, this report uses NorthstarMLS data for both metro and statewide figures, which represents approximately 96% of statewide listings.

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