Seller activity climbs faster than sales as Minnesota market rebalances

(Sep. 16, 2026)—Minnesota’s housing market showed mixed signals in August. Sellers kept showing up and listing their properties both statewide and, in the metro, but pending sales were up slightly in the metro and down slightly statewide. August marked the first statewide decline in sales and the slowest growth in the metro in 5 months, as higher inflation, energy prices and mortgage rates weigh on activity. So far in 2026, new listings are up 6.5% and pending sales are up 3.0% statewide. More sellers are testing the market, but not all of them are finding a match right away.

Other highlights show:

• New listings rose 7.1% statewide and 8.2% in the Twin Cities metro
• Pending sales decreased 1.2% statewide but rose 1.1% in the metro
• The median sales price was up 2.8% statewide and 1.3% in the metro

Supply side improvements creating a more balanced environment

The combination of more homes on market but fewer closing has pushed inventory to levels not seen in years. In fact, statewide inventory remained at a seven-year high and was up over 10.0% in August with over 20,000 homes for sale. Statewide, new listings rose 7.1% to 9,570, while the Twin Cities saw a stronger 8.2% jump to 6,481. August marked the 7^th straight month of gains both in the metro and statewide. Expanded housing supply creates more choice for would-be buyers but also relieves pressure on the market overall. Statewide, the housing market was the most balanced it’s been for any August since 2017. But the 3.5 months of supply is still low historically. A healthy, well-supplied market usually has around 5 or 6 months of supply.

“More homes are hitting the market, so buyers have been more active overall, and prices continue to rise but at a more sustainable pace. Minnesota’s housing market is showing encouraging signs of balance and stability,” said Wendy Uzelac, President of Minnesota Realtors^®.

Significant differences between market segments across the state:

• Pending sales under $400K were down 2.0%; sales over $1M increased 15.5%
• Single-family home sales rose 1.0%; condo sales fell 4.3%; townhome sales declined 2.5%
• Previously owned sales were 1.0% higher; new construction sales slipped 3.8%
• Two-bedroom home sales rose 3.0%; four-or-more bedroom home sales were up 4.7%
• Non-waterfront home sales decreased 0.4%; private waterfront home sales fell 0.2%
• Sales were down 1.6% in Minneapolis but were 12.6% lower in St. Paul

More homes give buyers more leverage and decision time

Shifts in inventory typically have real and noticeable impacts on market dynamics. With more choices, buyers have more time and room to negotiate. Sellers across the state accepted 97.5% of their list price, while metro sellers accepted 98.2%—both slightly lower than last year partly due to less competition. But that metric can vary significantly by area, property type, and price point. Homes are also taking a bit longer to sell—51 days statewide and 45 days in the metro. “Minneapolis area buyers are benefiting from more inventory and a slower pace, while existing owners still enjoy solid price growth. Even though sales activity is mixed, demand continues to support a resilient housing market," said Aarica Coleman, President of Minneapolis Area REALTORS^®.

Prices still rising and affordability still strained

Despite more supply and an easing in demand, prices haven’t retreated. The statewide median sales price rose 2.8% to $370,000, while the Twin Cities median climbed 1.3% to $405,000. Subdued demand is limiting how fast prices grow, but the overall supply shortage—despite recent gains—keeps price growth in positive territory. Other factors, like continued strength at the upper end of the market, are also contributing. Elevated mortgage rates and ongoing price gains, on top of rising taxes and insurance, are straining affordability at a time when inflation is eroding most wage gains. That said, more moderate price growth alongside rising inventory is leading to a healthier marketplace. But once again that varied by area and market segment. “St. Paul continues to face some headwinds, with sales below last year’s levels despite improving inventory. The good news is that stronger listing activity should create more opportunities for buyers in the months ahead,” said Danielle Bickham Pelton, President of the Saint Paul Area Association of REALTORS®.

Economy and rates

The biggest question facing the economy and housing market remains where interest rates go from here. Inflation has moderated from its spring peak, but price pressures remain higher than the Federal Reserve's long-run target, making the outlook for interest rates less certain. The conflict in Iran is driving energy prices up and contributing to an uptick in inflation. At the same time, economic and job growth have cooled, consumer confidence is soft and both businesses and households are facing more uncertainty. But business investment is strong, corporate earnings are near records and consumers continue spending. Still, heightened uncertainty has helped keep mortgage rates elevated, influencing affordability and buyer behavior. Minnesota's housing market has always been driven by local fundamentals, including jobs, incomes, and housing supply. We see a market that’s adapting and not retreating. With more opportunities for buyers and more time to shop around, conditions are gradually improving across much of the state.