Listings up and inventory rising in 2025 while sales remain flat

• New listings rose 0.6% in the Twin Cities
• Signed purchase agreements were up 0.5% in the metro
• The median sales price increased 2.6% in the metro to $395K

(Jun. 16, 2025) – According to new data from the Minnesota state and Twin Cities metro REALTOR^® Associations, new listings, pending sales, inventory and prices all rose again in May.

Sellers, Buyers and Housing Supply

Sellers have been more active in 2025 than buyers. Statewide seller activity rose 5.3% in May and is up 6.3% for the year. Metro seller activity rose a more modest 0.6% and is up 5.0% year-to-date. By contrast, statewide pending sales were up 1.7% for May and 0.3% higher for the year, while metro pending sales were up 0.5% and 0.2% respectively.

In a market where affordability and monthly payments are top of mind, it’s worth noting the average 30-year mortgage rate in May crept up from recent months—but stayed lower than the year’s early peak. The typical all-in mortgage payment in Minnesota stands at $2,637, including all counties, property types and price ranges. That’s about $1,000 more per month than in 2021. “Our hope is that the cool-down in trade tensions and calmer inflation can help lower rates moving forward,” said Patti Jo Fitzpatrick, President of Minnesota Realtors^®. “Of course, it’s never that simple because there are many factors driving the economy. But a less frantic market with more active sellers has pushed inventory nearly back to 2020 levels.” That meant buyers could take their time and enjoy more breathing room as their searches yielded more results that met their needs and budgets. Sure enough, inventory levels rose 10.1% statewide and 4.5% in the Twin Cities metro.

The under $300,000 segment saw an increase in new listings and a decrease in sales. That dynamic pushed months of supply up to 2.4 months, or the same as the $300,000 to $500,000 range. Single-family sales led the pack with a gain, while condo sales declined more than townhomes. But previously owned properties saw a 3.8% increase in accepted purchase agreements, while newly built homes saw a 9.2% decrease. Typical or traditional sales rose while foreclosure and short sales both fell. “It’s clear that different factors are impacting different segments within our market,” said Jennifer Livingston, President of the Saint Paul Area Association of REALTORS^®. “First time and repeat buyers, single family and condo buyers, new and existing home buyers, luxury buyers and investors are all looking for different things for different reasons.” But mortgage rates are one universal factor impacting the entire market.

Prices, Market Times and Negotiations

Today’s buyers tend to be more qualified and more committed compared to the last few years. There are also more move-up buyers—relative to first-time buyers—who are looking to roll their equity into the next home that meets their needs. That’s often a larger or newer home to accommodate a growing family or aging parents. The luxury market has also been outperforming lately. On top of the roughly 13-yearlong housing shortage, these factors push prices higher. Overall, the statewide median home price rose 2.8% to $360,000 while the metro's rose 2.6% to $395,000. And those sales took 37 days to go under contract statewide and 44 days in the metro.

Across the state, sellers accepted offers at 99.3% of their original list price compared to 100% in the metro. But that statistic differed by price segment. Listings between $300,000 and $500,000 fetched 100.5% of list price, while homes priced over $1 million got 96.8% of their list price. Single family homes saw 99.7% of list price, while condo sellers settled for 96.1%. “All markets are still driven by supply and demand,” said Frank D’Angelo, President of Minneapolis Area REALTORS®. “But changing consumer preferences, different levels of interest rate sensitivity and varying price points in newer communities can also play in.”

Locational Differences | Twin Cities Metro

For cities with at least five sales, Cokato, Chisago and Rockford had the largest sales gains. The highest priced areas were Excelsior, Wayzata, North Oaks and Orono, while the most affordable areas were Somerset, South St. Paul and Red Wing. Homes took the longest to sell in Cologne, North Oaks and Medina but sold the fastest in Arden Hills, Oak Grove, Robbinsdale and Andover. Wayzata was the only notable oversupplied market while Excelsior and Ham Lake were balanced. The most undersupplied markets were Circle Pines, Robbinsdale, Mounds View and Champlin.