March 2026 Market Insights

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

• New listings: 4,570 | +0.4%
• Inventory: 7,946 | +2.0%
• Months’ supply: 2.1 | No change
• Pending sales: 2,958 | -3.5%
• Median sales price: $380,000 | No change
• Closed sales: 2,200 | -9.4%
• Days on market: 69 | No change

The highlights

• Sellers were more active than buyers in February, with new listings up 1.9% across the state.
• Pending sales dipped 3.2% statewide and 3.5% in the Twin Cities metro.
• Affordability remains a major barrier for buyers, and sellers are showing signs of being willing to meet buyers where they are by reducing listing prices, resulting in a 1.5% decrease in median sales price in the state and metro prices remaining flat.

Seller activity continues to outweigh buyer activity in the Minnesota housing market. New listings saw a 1.9% statewide increase after two months of decline. Meanwhile, pending sales decreased 3.2%, indicating that seller activity remained more prominent than buyer activity in February — despite an increase in inventory (1.9%) and more favorable mortgage rates. Housing experts suggest that buyer hesitation may stem from economic uncertainty, but they remain confident that as pent-up demand builds, the market will gradually stabilize.

Evidence of this can be seen in the latest pending sales data. While pending sales did decline, it was the smallest decrease in the past three months. Inventory also continues to grow. Across the state, inventory increased 3.7%, while the metro area saw a 2.0% rise. Despite these gains, months’ supply held steady at 2.3 months statewide and 2.1 months in the metro.

Single-family home listings increased, while condo and townhome listings declined. Interestingly, both single-family and condo sales decreased, while townhome sales saw an increase. REALTORS® are advising sellers that buyers are more focused on monthly payments and overall price than they were just a few years ago, and that the broader economy will play a significant role in buyer demand. In response, sellers have begun taking affordability into greater consideration and are adjusting their pricing. As a result, the median sales price declined 1.5% to $339,900 statewide and remained steady at $380,000 in the metro. In fact, data from Realtor.com shows that Minnesota has not seen this many price reductions since 2016.

This shift is encouraging for buyers, who are now seeing more housing options, less competition, improved mortgage rates, and more stable pricing. While first-time homebuyers still face more barriers than move-up or downsizing buyers with equity, these trends are positive indicators that may boost buyer confidence. One encouraging sign is that pending sales for homes priced under $300,000 experienced the smallest decline across all price points.

However, it’s important to note that as more affordable homes make up a larger share of sales, the median sales price is affected. Lower median prices do not necessarily mean that all home values are declining. A trusted REALTOR® can help sellers offset price adjustments by negotiating other terms of the deal and ensuring an appropriate listing price from the start. These insights benefit both sellers — who want to maximize their property’s value — and buyers, who remain focused on affordability and monthly payments.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 4.0% (as of December 2025)
• Average rates for 30-year conforming mortgage 6.11%**

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 February 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: 50 | +2%
• Inventory: 166 | -6%
• Months’ supply: 2.10 | -9%
• Pending sales: 44 | -+52%
• Avg. sales price: $333,823 | +25%
• Days on market: 93 | +4%

Brainerd area

• New listings: 338 | -3%
• Inventory: 1,079 | -6%
• Months’ supply: 2.80 | -10%
• Closed sales: 167 | -20%
• Avg. sales price: $361,700 | -2%
• Days on market: 77 | +12%

Lake Superior area

• New listings: 197 | +3%
• Inventory: 688 | +16%
• Months’ supply: 2.50 | +14%
• Pending sales: 145 | -3%
• Avg. sales price: $303,121 | -2%
• Days on market: 61 | +13%

Southeast Minnesota area

• New listings: 428 | +4%
• Inventory: 971 | +15%
• Months’ supply: 2.30 | +15%
• Closed sales: 258 | -10%
• Avg. sales price: $331,466 | +3%
• Days on market: 70 | +19%

St. Cloud area

• New listings: 107 | +26%
• Inventory: 248 | +33%
• Months’ supply: 2.20 | +29%
• Pending sales: 91 | +20%
• Avg. sales price: $300,339 | +2%
• Days on market: 64 | +8%

Mankato area

• New listings: 132 | +16%
• Inventory: 357 | +17%
• Months’ supply: 2.60 | +18%
• Pending sales: 90 | -10%
• Avg. sales price: $269,894 | -4%
• Days on market: 112 | +7%

Northwestern Wisconsin area

• New listings: 353 | +17%
• Inventory: 1,164 | -7%
• Months’ supply: 3.00 | -12%
• Closed sales: 239 | +3%
• Avg. sales price: $307,852 | +2%
• Days on market: 121 | +15%

West Central Minnesota area

• New listings: 231 | +37%
• Inventory: 714 | +18%
• Months’ supply: 3.40 | +13%
• Pending sales: 155 | +6%
• Avg. sales price: $213,187 | +6%
• Days on market: 88 | +19%

Bemidji area

• New listings: 30 | -14%
• Inventory: 132 | -7%
• Months’ supply: 3.10 | -6%
• Pending sales: 30 | +3%
• Median sales price: $245,000 | -14%
• Days on market: 94 | +71%

Leech Lake and surrounding area

• New listings: 32 | -3%
• Inventory: 128 | +11%
• Months’ supply: 2.80 | No change
• Pending sales: 23 | +35%
• Median sales price: $240,000 | -19%
• Days on market: 55 | -40%

Little Falls area

• New listings: 19 | +58%
• Inventory: 40 | +43%
• Months’ supply: 2.30 | +35%
• Pending sales: 14 | +27%
• Median sales price: $229,000 | +6%
• Days on market: 50 | -24%

Southwest Minnesota area

• New listings: 89 | +59%
• Inventory: 307 | +9%
• Months’ supply: 3.80 | +9%
• Pending sales: 41 | -5%
• Median sales price: $182,000 | +17%
• Days on market: 94 | +29%

Headwaters area

• New listings: 51 | -16%
• Inventory: 349 | +12%
• Months’ supply: 3.10 | -18%
• Pending sales: 47 | -15%
• Median sales price: $275,000 | -8%
• Days on market: 99 | +18%