In 2025, the Twin Cities housing market is showing some interesting changes. There are more homes for sale, but the number of people actually buying homes hasn’t changed much.
📈 What’s Happening?
According to the Saint Paul Area Association of REALTORS® (SPAAR), new listings in the Twin Cities went up by 0.6% in May. That means more homeowners are putting their houses up for sale. Inventory—the total number of homes available—also rose by 4.5%. This gives buyers more choices and a little more time to make decisions.
But even with more homes on the market, the number of signed purchase agreements (when a buyer agrees to buy a home) only went up by 0.5%. So, while sellers are more active, buyers are still being cautious.
💰 What About Prices?
The median sales price in the Twin Cities rose by 2.6%, reaching $395,000. That means half the homes sold for more than that, and half sold for less. Prices are still going up, but not as fast as in past years.
📊 Why Are Sales Flat?
One big reason is mortgage rates. In May, the average 30-year mortgage rate went up a little, making monthly payments more expensive. The typical monthly mortgage payment in Minnesota is now about $2,637, which is $1,000 more than it was in 2021. That makes it harder for some people to afford a home.
🏘️ What Does This Mean for Buyers and Sellers?
- Buyers: You have more homes to choose from and a little more time to decide. But be ready for higher monthly payments.
- Sellers: Homes are still selling, especially in the $300,000–$500,000 range. But you might need to be more flexible with pricing.
📉 Median Home Price Trend (Last 2 Years)
Here’s a look at how the median home price has changed in the Twin Cities over the past two years:
As you can see, prices have steadily increased, with a slight leveling off in recent months.
📋 Market Summary
In May 2025, the Twin Cities housing market saw a rise in new listings (up 0.6%) and inventory (up 4.5%), giving buyers more options and time to make decisions. However, sales activity remained mostly flat, with pending sales increasing just 0.5%.
The median sales price rose 2.6% to $395,000, while the average monthly mortgage payment in Minnesota reached $2,637, about $1,000 more than in 2021. This increase in cost is making affordability a key concern for buyers.
Sellers have been more active than buyers, especially in the $300,000–$500,000 price range, where homes are selling close to or above list price. Meanwhile, condo sales declined, and new construction homes saw fewer accepted offers, while resales increased.
Overall, the market is stabilizing with more inventory and slower price growth, but higher mortgage rates continue to challenge affordability.
