May 2025 Market Insights

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

• New listings: 6,754 | +5.5%
• Median sales price: $398,900 | +3.5%
• Closed sales: 3,871 | +0.3%
• Pending sales: 4,498 | +3.6%
• Days on market: 50 | +8.7%
• Inventory: 8,617 | +4.8%
• Months’ supply: 2.3 | +4.5%

The highlights

• April new listings, pending sales, inventory and prices all saw gains.
• Tariff announcements and economic uncertainty continue to play a role in the number of buyers willing to enter the market.
• Homes priced $1M+ saw an increase in sales of 18%, while condos showed a decrease in sales of 17%.

April continued to show positive signs of an active spring market. This past month, new listings, pending sales, inventory and prices all saw increases. In a year where economic uncertainty and lower inventory have resulted in slower home turnover, these gains show momentum in creating a more balanced market.

Tariff announcements caused bond and stock market changes, which impacted mortgage rates throughout the month. At one point dipping to 6.6%, rates also saw highs of nearly 7.1%. For consumers who are especially sensitive to housing affordability and mortgage rates, the low swings seemed to nudge buyers into signing purchase agreements (up 3.6% in the Twin Cities metro).

On the flip side, some buyers have become a little more conservative with their larger purchases, and new home construction is likely to be impacted. Construction companies are dealing with complex global supply chains that could likely result in fewer new homes on the market and increased home costs.

Typically, new construction homes make up about 10% of the inventory, and the current supply of new construction homes is well balanced, if not slightly oversupplied. However, sales of new homes decreased 13%, in part due to the 45% price premium they carry over existing homes.

Overall, homes priced $1M+ made up a larger portion of sales with an increase of 18%. Meanwhile, sales under $1M rose 3.5%. Single family home and townhome sales across the state also saw gains of 4% and 8%, though condo sales fell nearly 17%.

As we continue into the heart of the summer market, it’s expected that affordability will play a pivotal role in the number of buyers willing to enter the market and commit to a home.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.5% (as of March 2025)
• Average rates for 30-year conforming mortgage 6.81%**

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 May 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: 151 | +6%
• Avg. sales price: $293,474 | -14%
• Pending sales: 92 | -8%
• Days on market: 64 | +36%
• Inventory: 245 | +11%
• Months’ supply: 3.2 | +14%

Brainerd area

• New listings: 726 | +13%
• Avg. sales price: $364,972 | -4%
• Closed sales: 334 | -8%
• Days on market: 64 | +7%
• Inventory: 1,429 | +17%
• Months’ supply: 3.80 | +23%

Lake Superior area

• New listings: 405 | +5%
• Avg. sales price: $315,927 | +1%
• Pending sales: 247 | +7%
• Days on market: 43 | -4%
• Inventory: 757 | +23%
• Months’ supply: 2.90 | +32%

Southeast Minnesota area

• New listings: 684 | +6%
• Avg. sales price: $338,151 | +2%
• Closed sales: 420 | -2%
• Days on market: 49 | +9%
• Inventory: 985 | +15%
• Months’ supply: 2.30 | +15%

St. Cloud area

• New listings: 194 | +24%
• Avg. sales price: $302,459 | +6%
• Pending sales: 138 | +6%
• Days on market: 42 | -5%
• Inventory: 236 | +8%
• Months’ supply: 2.10 | +11%

Mankato area

• New listings: 222 | +3%
• Avg. sales price: $287,678 | +2%
• Pending sales: 168 | +4%
• Days on market: 96 | +3%
• Inventory: 353 | +18%
• Months’ supply: 2.60 | +24%

Northwestern Wisconsin area

• New listings: 644 | +13%
• Avg. sales price: $301,909 | -2%
• Closed sales: 324 | -2%
• Days on market: 105 | +35%
• Inventory: 1,684 | +22%
• Months’ supply: 4.50 | +10%

West Central Minnesota area

• New listings: 345 | +20%
• Avg. sales price: $247,792 | +3%
• Pending sales: 238 | +4%
• Days on market: 68 | +8%
• Inventory: 642 | +17%
• Months’ supply: 3.10 | +24%

Bemidji area

• New listings: 84 | +15%
• Median sales price: $280,000 | +4%
• Pending sales: 35 | -35%
• Days on market: 44 | +19%
• Inventory: 199 | +58%
• Months’ supply: 4.90 | +81%

Leech Lake and surrounding area

• New listings: 76 | +21%
• Median sales price: $269,500 | -25%
• Pending sales: 28 | -28%
• Days on market: 21 | -25%
• Inventory: 184 | +28%
• Months’ supply: 4.50 | +36%

Little Falls area

• New listings: 31 | +19%
• Median sales price: $228,125 | Minimal
• Pending sales: 26 | +86%
• Days on market: 12 | +71%
• Inventory: 30 | +25%
• Months’ supply: 1.70 | +31%

Southwest Minnesota area

• New listings: 130 | +20%
• Median sales price: $200,000 | +16%
• Pending sales: 94 | +7%
• Days on market: 78 | +26%
• Inventory: 284 | +18%
• Months’ supply: 3.30 | +10%

Headwaters area

• New listings: 140 | +13%
• Median sales price: $270,000 | +6%
• Pending sales: 73 | -16%
• Days on market: 95 | +27%
• Inventory: 316 | +23%
• Months’ supply: 5.20 | +41%