Five things to know when buying a home this fall

Key insights:

• Prices are still rising across the Twin Cities metro, Minnesota and Wisconsin.
• The supply of homes for sale is growing, but it’s still a seller’s market.
• Days on market continue to increase, giving buyers more time to make decisions.
• Interest rates dropped to a three-year low in mid-September, giving buyers more buying power.
• Real estate is hyper-local, and an experienced professional is essential.

Fall homebuyers, take note

If you didn’t meet your homebuying goals this summer, don’t fret—there’s still time to get into your dream home before winter weather sets in. In fact, while it’s still a seller’s market, conditions have been moving to be more favorable to buyers, with homes staying on the market for longer and interest rates hitting a three-year low in mid-September. And with some buyers deciding to wait until after the holidays to resume their home search, those who continue on the hunt now can benefit from reduced competition. Here are five insights you can use as you look to buy your home this fall.

Buyer reality #1: Home prices continue to rise

Affordability remains a top concern for many buyers, especially those buying their first home (reminder that current homeowners have record-high equity and can put it to work on the purchase of their move-up property). This has made some would-be buyers delay their home purchase, hoping for prices or interest rates to come down.

In August, the median sales price climbed 2.3% in Minnesota to $360,000, 2.8% in the Twin Cities metro to $399,999 and 5.3% in Wisconsin to $338,000. High demand and low inventory have left buyers competing over the same homes, which drives up sales prices.

The reality is that home prices are likely to continue to increase, and would-be buyers who delay their purchase are missing out on building home equity and personal wealth. This makes waiting more expensive in the long run.

Buyer reality #2: Home inventory is growing, but remains low

The good news for buyers is that home inventory has been growing for the past 24 months (August marked the first decline in the metro area), giving them more options and reducing competition slightly. That said, it’s still a seller’s market, which is marked by an undersupply of homes for sale. Generally speaking, a balanced market needs around five to six months of supply. Anything less is a seller’s market; anything more is a buyer’s market.

• Minnesota is undersupplied with 3.1 months
• The Twin Cities 16-county metro is undersupplied with 2.7 months
• Wisconsin has a range of 3.6 months in urban counties to 5.9 months in rural counties (July data)

Buyer reality #3: Homes are taking longer to sell

When buyers compete over the same properties, sellers reap faster sales, especially when there is a shortage of homes for sale on the market. But the good news for buyers is that with growing supply, the average time a home spends on the market before selling has been increasing in recent months, averaging:

• 42 days in the Twin Cities 16-county metro area, according to the Minneapolis Area Association of REALTORS®
• 40 days in Minnesota, according to the Minnesota Association of Realtors
• 66 days in Wisconsin, according to the Wisconsin Realtors Association (July)

This gives buyers more time to make decisions and find the right fit. However, buyers should still have a clear plan for what they’re looking for, in what area, at what budget and in what timeline.

Buyer reality #4: Rates can impact buying power and market activity

Mid-September brought a decrease in mortgage interest rates, giving buyers more buying power. Even a slightly lower interest rate can offer significant savings on a monthly mortgage payment and give buyers the ability to afford more home or expand their search.

Buyers who are waiting for interest rates to come down further should consider this: when rates are lower, more buyers enter the market, which increases competition and can increase sales prices as a result. No one market metric operates in a vacuum, and while a lower rate offers more buying power, increased competition and sales prices can have the opposite effect, so it may not pay to wait for rates to drop further.

Buyer reality #5: Markets are hyper-local

Neighborhood, location, condition, price, property type, timing and more play a role in real estate market dynamics. While you may have access to information, it takes an experienced professional to help you understand what it all means so you can make an informed decision and move forward with confidence.

Thinking about buying?

Ready to start your home search and get settled before the holidays? Reach out to our customer care team to get matched with a local REALTOR® who can help you achieve your homeownership goals.

_{All Minnesota and Twin Cities information is based on data reported by the Minneapolis Area Association of Realtors for Aug. 2025. Wisconsin information is based on data reported by the Wisconsin Realtors Association for July or Aug. 2025.}