December 2025 Market Insights

Key insights from November 2025 (compared to November 2024)*

• New listings: 3,728 | +0.1%
• Inventory: 9,209 | -1.7%
• Months’ supply: 2.40 | -4.0%
• Pending sales: 3,072 | -2.4%
• Median sales price: $387,000 | +2.9%
• Closed sales: 3,275 | -5.6%
• Days on market: 50 | 0.0%

The highlights

• New listings saw a 2.4% rise statewide and a 0.1% rise across the metro area, while pending sales were down 1.7% statewide and 2.4% in the Twin Cities metro, showing an increase in seller activity that surpassed buyer activity.
• Affordability remains a barrier for buyers, with the median sales price showing a 2.9% increase and mortgage rates staying around 6.25%
• With more inventory, potential for better affordability and national accolades for housing potential in MN, 2026 is looking to be a promising year in real estate.

Once again, seller activity outpaced buyer activity, allowing for inventory to build across the state by 1.5%. Sellers are using the equity they have built in their current residence to soften the blow of rising home costs and higher mortgage rates.

Part of seller activity is driven by life changes, such as growing families, new jobs, downsizing and more. Sellers who had been holding out for lower mortgage rates (or, sellers who were reluctant to part with the historically low rates seen during the pandemic) are finding that their current situation and need for a different space outweighs any perceived losses.

It's a different story for buyers, especially first-time homebuyers, who do not have the home equity needed to offset rising listing prices and lower economic growth. Affordability remains a major factor that has prevented any would-be buyers from entering the market. Once again, the median sales price grew by 2.9%, reaching $350,000 statewide and $387,000 in the metro area.

Those who entered the market in November strayed away from existing home sales (down 0.6%) and instead opted for condo purchases, which saw a sales increase of nearly 16% statewide. This is an indicator that choosing more moderately priced real estate options, such as condos, is becoming more desirable than waiting for an existing home to become available and within budget. This shift also shows more flexibility on the part of buyers, who are looking at different types of dwellings and neighborhoods than they perhaps would have normally.

Still, the decline in buyer activity (a pending sales decrease by 1.7% statewide and 2.4% in the metro area) shows that some are still holding out for a perfect fit. But, despite the shift in buyer and seller activity, and while multiple offer scenarios were not the norm this fall, sellers are still receiving their asking price. Meanwhile, days on market remained flat.

There is a lot of good news for 2026. Average 30-year mortgage rates are down from last November’s 6.8% to 6.25%. Economists say that if the economy can remain resilient and inflation cools, affordability will become less of an issue, which should encourage buyers to join the market. Inventory levels for the year are also up from last year, with an 8.9% rise across the state and a 6.0% increase in the Twin Cities metro, allowing for 2.7 and 2.4 months supply, respectively.

Make no mistake, it remains a seller’s market, but the market is the most balanced it’s been in about five years, showing a positive trend for those interested in buying or selling in the new year. Plus, a new report form the National Association of REALTORS® puts the Twin Cities as one of the top 10 hot spots for housing in 2026, making it a place to watch in the future.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.6% (as of September 2025)
• Average rates for 30-year conforming mortgage 6.21%**

Ready to help

We are here to help you confidently navigate your housing needs, now and always. Whether you are researching future options, or your circumstances require immediate action, reach out to an Edina Realty agent today for guidance.

*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for November 2025.

**Data sourced from Freddiemac.com for informational purposes only. Please contact your mortgage consultant for any questions related to specific loan transactions.

Where you live

Edina Realty serves locations across Minnesota and western Wisconsin. Here’s a look at the market indicators where you live. All % changes are year-over-year.

Alexandria Area

• New listings: 69 | +5%
• Inventory: 257 | +11%
• Months’ supply: 3.20 | +7%
• Pending sales: 62 | +15%
• Avg. sales price: $347,603 | -3%
• Days on market: 55 | +2%

Brainerd area

• New listings: 331 | +7%
• Inventory: 1,403 | +2%
• Months’ supply: 3.50 | -3%
• Closed sales: 355 | +1%
• Avg. sales price: $429,837 | +8%
• Days on market: 54 | -5%

Lake Superior area

• New listings: 265 | +32%
• Inventory: 933 | +15%
• Months’ supply: 3.40 | +13%
• Pending sales: 265 | -6%
• Avg. sales price: $339,899 | +9%
• Days on market: 37 | +3%

Southeast Minnesota area

• New listings: 387 | +7%
• Inventory: 1,167 | +9%
• Months’ supply: 2.70 | +8%
• Closed sales: 370 | -2%
• Avg. sales price: $324,065 | +0%
• Days on market: 45 | No change

St. Cloud area

• New listings: 105 | +17%
• Inventory: 293 | +18%
• Months’ supply: 2.60 | +18%
• Pending sales: 91 | +2%
• Avg. sales price: $338,154 | +20%
• Days on market: 43 | +16%

Mankato area

• New listings: 124 | +4%
• Inventory: 438 | +18%
• Months’ supply: 3.20 | +19%
• Pending sales: 105 | -11%
• Avg. sales price: $283,863 | -1%
• Days on market: 77 | -6%

Northwestern Wisconsin area

• New listings: 271 | -1%
• Inventory: 1,525 | +6%
• Months’ supply: 3.90 | -3%
• Closed sales: 351 | -7%
• Avg. sales price: $347,120 | +4%
• Days on market: 97 | +18%

West Central Minnesota area

• New listings: 222 | +20%
• Inventory: 798 | +12%
• Months’ supply: 3.70 | +6%
• Pending sales: 183 | -10%
• Avg. sales price: $233,828 | +3%
• Days on market: 63 | +24%

Bemidji area

• New listings: 38 | +23%
• Inventory: 186 | +1%
• Months’ supply: 4.40 | +2%
• Pending sales: 25 | -4%
• Median sales price: $269,400 | -12%
• Days on market: 44 | -41%

Leech Lake and surrounding area

• New listings: 36 | +44%
• Inventory: 187 | +15%
• Months’ supply: 4.10 | +5%
• Pending sales: 41 | +8%
• Median sales price: $331,450 | -1%
• Days on market: 49 | -37%

Little Falls area

• New listings: 15 | -44%
• Inventory: 47 | +24%
• Months’ supply: 2.70 | +23%
• Pending sales: 14 | +27%
• Median sales price: $259,500 | +21%
• Days on market: 21 | -16%

Southwest Minnesota area

• New listings: 81 | +3%
• Inventory: 301 | +10%
• Months’ supply: 4.10 | -2%
• Pending sales: 81 | +7%
• Median sales price: $174,950 | -10%
• Days on market: 74 | +28%

Headwaters area

• New listings: 62 | +29%
• Inventory: 348 | +15%
• Months’ supply: 4.40 | -10%
• Pending sales: 59 | +16%
• Median sales price: $267,500 | +6%
• Days on market: 75 | -20%