News release: Better rates boost sales as sellers ramp up listings despite broader economic concerns

According to new data from the Minnesota and Twin Cities metro REALTOR^® Associations, new listings, pending sales, inventory and prices all rose in March.

Sellers, Buyers and Housing Supply

With the spring buying season upon us, home buyers and sellers are facing a mixed bag of uncertainty and opportunity. In March, mortgage rates hit their lowest level since October 2024. This drop facilitated an increase in housing demand from sidelined buyers, who remain frustrated by the affordability environment and thin supply. Signed purchase agreements rose statewide and in the metro, despite economic uncertainty. That said, the potentially seismic shift in U.S. and global trade policy sent markets on a roller coaster ride in early April, briefly driving rates down before they rose higher. However, this shifting economic backdrop isn’t fully reflected in the March data. While pending sales are a leading indicator of closed sales, a decline in closed sales, combined with more new listings, pushed inventory levels about 5.0% higher statewide but more like 2.0% in the Twin Cities. Condo sales fell more than single family and townhomes, and new construction sales declined while previously owned sales rose. Sales under $1M decreased 2.0% but sales over $1M rallied 18.6% across the state.

More broadly, consumer sentiment has taken a downturn lately. Minnesotans are worried about tariffs, inflation, the labor market and job security and other economic and political uncertainties. When consumers lack confidence in the economy and their job security, they may be less likely to make major purchases like a house or car. If that consumer unease spills into the housing market it could stifle the busy spring and summer selling seasons. “Every challenge also brings opportunity,” said Patti Jo Fitzpatrick, President of Minnesota Realtors^®. “Nobody really knows what’ll happen with rates and so it’s best not to try and time the market. Those out shopping could see less competition and more options this spring. We’re also glad to see home sellers staying active.”

Prices, Market Times and Negotiations

The statewide median home price was up 3.0% to $345,000, while the metro median price rose 3.5% to $380,000. But today’s home buyers are more sensitive to their mortgage payment than to changes in price. In other words, buyers are highly rate sensitive, as rates have a larger impact on monthly budgets. Even as home prices rise, monthly payments could fall if rates decline enough. A typical “all-in” payment on the median priced home, including taxes and insurance, was about $2,500 statewide and $2,800 in the metro for 2024. In 2021, $1,800 per month was the typical metro mortgage payment. “Different buyers are sensitive to different dynamics,” said Frank D’Angelo, President of Minneapolis Area REALTORS^®. “While the luxury segment is seeing near record levels of cash deals, other buyers, sellers and builders alike are getting creative in order to get deals done.”

On average, sellers accepted offers at 98.1% of their list price statewide and 99.0% in the metro. That marks a fifth consecutive month of metro gains. And those listings spent 51 days on market statewide and 58 days in the metro—both up slightly from a year ago. Condos are taking nearly 50.0% longer to sell than single family and townhomes as those sellers are accepting weaker offers. “My buyers share most of the same uncertainty we’re all feeling,” said Jennifer Livingston, President of the Saint Paul Area Association of REALTORS^®. “But motivated buyers are committing and moving forward with confidence. And while they’re appreciating a slower and less frantic market, they still need to be ready to act when they find the right home.”

Locational Differences | Twin Cities Metro

For cities with at least five sales, St. Francis, Cokato, East Bethel and North Oaks had the largest sales gains. The highest priced areas were North Oaks, Wayzata, and Medina while the most affordable areas were Maple Lake, Cokato and North St. Paul. Homes took the longest to sell in Rockford, Hanover and Little Canada and sold the fastest in Jordan, Crystal and Mendota Heights. The most balanced markets were Ham Lake, Wayzata, Rockford and Delano while the most undersupplied markets were Spring Lake Park, Arden Hills, South St. Paul and Robbinsdale.