February 2026 Market Insights

Key insights from January 2026 (compared to January 2025)*

• New listings: 3,909 | -10.8%
• Inventory: 7,356 | -3.0%
• Months’ supply: 1.90 | -5.0%
• Pending sales: 2,275 | -12.9%
• Median sales price: $375,000 | +1.4%
• Closed sales: 2,003 | -17.7%
• Days on market: 63 | -4.5%

The highlights

• 2026 had a slow start in real estate with new listings and pending sales both down.
• Inventory levels remain fairly flat with just a 0.3% decline from last January, putting them at a near six-year high.
• Despite higher inventory and lower mortgage rates, buyer and seller activity is down, possibly due to economic concern, harsh winter weather and civil unrest.

Despite inventory levels being at nearly a six-year high and mortgage rates close to a three-year low, listings and pending sales were down (-9% and -11.4% respectively). This goes beyond the January slow-down that you might expect from a typical year. The cause for this sluggish start is uncertain. Winter storms with high winds and icy conditions may have played a part in deterring potential buyers from venturing out to open houses and being willing to make a chilly move. Civil unrest and federal activity in the area may have similarly taken focus away from home buying or selling, or discouraged people from entering certain areas where it was taking place.

Economic uncertainty and affordability concerns remain a barrier for some. Home prices continue to rise (+1.5% statewide) with a median price of $335,000. This is reflected in the decline in pending sales, where affordable solutions were significantly impacted.

While declines in home sales were consistent across different price points, homes $300k and less were down 18.2% and condos fell 22.6%. The only segment that remained unscathed was homes priced between $700-900k, which was the only one with more signed purchase agreements than last year. Still, sellers are getting 96.0% of their asking price, which is up from last year and the highest since January 2022. They are faced with an average of 56 days on the market, a 5.4% increase.

It’s important to remember that real estate is hyper-local. While some areas are seeing quick-turn sales with multiple offers, others are making price adjustments and concessions. Talking to a REALTOR® about your area is paramount in determining next steps as both a buyer and seller. For instance, in a slower area, buyers may be advised that they have more leverage and time to find their perfect home. Similarly, sellers may utilize a slower market to make REALTOR-recommended updates, refresh their marketing efforts and look for their next home.

The good news is inflation and job growth data came in better than expected, which means the economy is better situated than forecasted and could encourage market activity should it continue. It will take time to see if January was a storm of unfortunate factors or if it’s part of a larger trend for the year.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 4.0% (as of December 2025)
• Average rates for 30-year conforming mortgage 6.09%**

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 January 2026.

**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: 46 | +2%
• Inventory: 170 | +2%
• Months’ supply: 2.10 | No change
• Pending sales: 37 | -27%
• Avg. sales price: $291,328 | -21%
• Days on market: 51 | -25%

Brainerd area

• New listings: 243 | -13%
• Inventory: 1,039 | -8%
• Months’ supply: 2.70 | -10%
• Closed sales: 181 | -22%
• Avg. sales price: $356,946 | +5%
• Days on market: 73 | +12%

Lake Superior area

• New listings: 165 | -25%
• Inventory: 696 | +12%
• Months’ supply: 2.50 | +9%
• Pending sales: 166 | -2%
• Avg. sales price: $299,691 | +12%
• Days on market: 56 | +19%

Southeast Minnesota area

• New listings: 378 | +4%
• Inventory: 941 | +9%
• Months’ supply: 2.20 | +5%
• Closed sales: 272 | +1%
• Avg. sales price: $317,156 | -1%
• Days on market: 70 | +17%

St. Cloud area

• New listings: 87 | -16%
• Inventory: 249 | +27%
• Months’ supply: 2.20 | +22%
• Pending sales: 68 | -14%
• Avg. sales price: $325,064 | +7%
• Days on market: 61 | +11%

Mankato area

• New listings: 106 | +7%
• Inventory: 352 | +17%
• Months’ supply: 2.60 | +18%
• Pending sales: 97 | -2%
• Avg. sales price: $303,462 | +15%
• Days on market: 98 | +8%

Northwestern Wisconsin area

• New listings: 239 | -21%
• Inventory: 1,107 | -10%
• Months’ supply: 2.80 | -18%
• Closed sales: 228 | +7%
• Avg. sales price: $316,783 | +4%
• Days on market: 115 | +6%

West Central Minnesota area

• New listings: 165 | -9%
• Inventory: 672 | +9%
• Months’ supply: 3.20 | +7%
• Pending sales: 115 | -23%
• Avg. sales price: $240,053 | +16%
• Days on market: 84 | +35%

Bemidji area

• New listings: 28 | -15%
• Inventory: 136 | -8%
• Months’ supply: 3.20 | -6%
• Pending sales: 29 | +16%
• Median sales price: $275,000 | +49%
• Days on market: 59 | +20%

Leech Lake and surrounding area

• New listings: 19 | -17%
• Inventory: 133 | +16%
• Months’ supply: 2.90 | +7%
• Pending sales: 23 | -12%
• Median sales price: $345,000 | -5%
• Days on market: 51 | +24%

Little Falls area

• New listings: 16 | +33%
• Inventory: 36 | +13%
• Months’ supply: 2.10 | +11%
• Pending sales: 5 | -50%
• Median sales price: $239,500 | -16%
• Days on market: 49 | +40%

Southwest Minnesota area

• New listings: 62 | -14%
• Inventory: 303 | +8%
• Months’ supply: 3.60 | -3%
• Pending sales: 49 | -27%
• Median sales price: $204,000 | +32%
• Days on market: 91 | +57%

Headwaters area

• New listings: 50 | -7%
• Inventory: 349 | +13%
• Months’ supply: 3.40 | -17%
• Pending sales: 49 | +4%
• Median sales price: $260,000 | +29%
• Days on market: 86 | -8%