October 2025 Market Insights

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

• New listings: 6,343 | +5.2%
• Inventory: 10,573 | -1.0%
• Months’ supply: 2.70 | -6.9%
• Pending sales: 4,003 | +7.9%
• Median sales price: $390,000 | +2.6%
• Closed sales: 4,092 | +7.5%
• Days on market: 44 | +12.8%

The highlights

• New listings and pending sales both grew, indicating an increase in buyer and seller activity.
• Buyers continue to remain rate-sensitive and are watching rates closely as affordability continues to be a barrier to homeownership for many.
• The government shutdown makes it difficult to predict where rates will go.

Buyer and seller activity increased in September, with statewide new listings and pending sales both rising 4.9% and 5.9%, respectively. In addition, homes are remaining on the market for longer, giving buyers more breathing room to make their choice and negotiate. However, it’s important to remember that this recent uptick has not created a balanced market. The state remains undersupplied at 3.2 months, whereas a balanced market would have five- or six-months supply of homes.

Buyers, particularly first-time buyers, continue to be edged out of the market by high price tags. Not only has the median sales price increased 2.1% to $357,200 statewide and 2.6% to $390,000 in the metro, but mortgage rates have acted as a barrier to many thinking of entering the market.

While mortgage rates have fallen from nearly 7.0% in January to a more moderate 6.35% in September, many are staying on the sideline of the housing market in hopes of further reduced rates. Since even a small change in rates can have a big impact on mortgage payments, potential buyers are eagerly watching the market.

It is anticipated that the Federal Reserve will cut its rates, which could impact the broader economic factors that play into mortgage rate determination. However, the government shutdown makes it more difficult to predict future rates, as many statistics, such as job reports, are unavailable.

While current buyer and seller indicators are promising, it is believed that a decrease in rates may be the push move-up and downsize homeowners need to list their current property, alleviate inventory woes and make room for first-time buyers to enter into more moderately priced abodes.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 4.1% (as of August 2025)
• Average rates for 30-year conforming mortgage 6.27%**

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 September 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: 112 | +4%
• Inventory: 330 | +14%
• Months’ supply: 4.20 | +11%
• Pending sales: 82 | No change
• Avg. sales price: $394,798 | +12%
• Days on market: 53 | -4%

Brainerd area

• New listings: 584 | -4%
• Inventory: 1,770 | +8%
• Months’ supply: 4.60 | +5%
• Closed sales: 501 | +10%
• Avg. sales price: $393,003 | -4%
• Days on market: 49 | -4%

Lake Superior area

• New listings: 363 | -2%
• Inventory: 1,092 | +21%
• Months’ supply: 4.00 | +18%
• Pending sales: 344 | +15%
• Avg. sales price: $335,703 | +0%
• Days on market: 34 | +31%

Southeast Minnesota area

• New listings: 591 | +9%
• Inventory: 1,230 | +4%
• Months’ supply: 2.80 | No change
• Closed sales: 450 | +4%
• Avg. sales price: $345,669 | +8%
• Days on market: 44 | +10%

St. Cloud area

• New listings: 181 | +18%
• Inventory: 330 | +4%
• Months’ supply: 2.90 | No change
• Pending sales: 158 | +50%
• Avg. sales price: $295,757 | -4%
• Days on market: 41 | +11%

Mankato area

• New listings: 217 | +3%
• Inventory: 449 | +16%
• Months’ supply: 3.20 | +14%
• Pending sales: 131 | -6%
• Avg. sales price: $329,802 | +14%
• Days on market: 81 | -2%

Northwestern Wisconsin area

• New listings: 559 | +3%
• Inventory: 1,895 | +8%
• Months’ supply: 4.90 | No change
• Closed sales: 453 | +8%
• Avg. sales price: $361,042 | +8%
• Days on market: 86 | +6%

West Central Minnesota area

• New listings: 354 | +16%
• Inventory: 861 | +10%
• Months’ supply: 4.00 | +5%
• Pending sales: 256 | +19%
• Avg. sales price: $253,262 | -5%
• Days on market: 59 | +11%

Bemidji area

• New listings: 59 | -12%
• Inventory: 220 | +4%
• Months’ supply: 5.40 | +10%
• Pending sales: 49 | +4%
• Median sales price: $294,500 | +12%
• Days on market: 51 | +27%

Leech Lake and surrounding area

• New listings: 74 | +30%
• Inventory: 254 | +17%
• Months’ supply: 5.70 | +6%
• Pending sales: 55 | +31%
• Median sales price: $348,500 | +12%
• Days on market: 41 | +8%

Little Falls area

• New listings: 21 | +11%
• Inventory: 50 | +67%
• Months’ supply: 3.00 | +76%
• Pending sales: 12 | -52%
• Median sales price: $290,000 | +14%
• Days on market: 30 | +67%

Southwest Minnesota area

• New listings: 112 | +26%
• Inventory: 299 | +13%
• Months’ supply: 4.30 | -4%
• Pending sales: 88 | +11%
• Median sales price: $200,000 | +10%
• Days on market: 61 | +11%

Headwaters area

• New listings: 106 | +3%
• Inventory: 348 | +18%
• Months’ supply: 5.80 | +4%
• Pending sales: 86 | -15%
• Median sales price: $307,000 | +13%
• Days on market: 64 | -2%