September 2025 Market Insights

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

• New listings: 5,936 | -0.9%
• Inventory: 10,255 | -0.2%
• Months’ supply: 2.70 | -3.6%
• Pending sales: 4,249 | +4.8%
• Median sales price: $399,999 | +2.8%
• Closed sales: 4,625 | +1.1%
• Days on market: 42 | +5.0%

The highlights

• Buyer activity was up with more pending sales, while seller activity slowed with fewer new listings.
• First-time homebuyers have been hesitant to enter the market due to pricing, even though mortgage rates have been on a downward slope.
• Home prices and days on market both increased, while months’ supply remained stagnant across the state.
• Mortgage rates could continue to soften as the labor market slows.

Good news—almost half of all Minnesota counties have seen year-over-year growth in both new listings (47.5%) and sales growth (45.0%). While August did mark the first decline in inventory, it should be noted that the past 24 months saw year-over-year inventory increases, and buyer activity continues to show momentum.

Buyer activity was up across the state with a 2.9% rise in pending sales statewide and a 4.8% rise across the metro, despite slightly lower new listings seen in August (-1.8% statewide and -0.9% Twin Cities metro). However, home prices and mortgage rates continue to prevent homebuyers—particularly first-time buyers—from entering the housing market. Their sensitivity to pricing has been somewhat relieved by the downward trend of home mortgage rates, which went from 6.8% to 6.35% in September.

While mortgage rates are going down, home prices continue to climb. Across the state of Minnesota, the median sales price went up by 2.3% to $360,000. The metro fared slightly higher with a 2.8% increase to up $399,999. Days on market also increased to 40 days statewide and 42 days in the metro (a 5.3% and 5.0% rise, respectively). Months’ supply statewide remained steady at 3.1 months across the state, while the Twin Cities metro saw a 3.6% decrease to 2.7 months. Both stats are still a far cry from the 5-6 months needed for a balanced market.

The market could soon see a shift to a more balanced market, should mortgage rates continue their downward trend. The latest economic data shows a slowing labor market, which could prompt the Fed to lower rates, and in turn could cause mortgage rates to soften and encourage price-weary buyers to commit to a more serious home search and give hesitant sellers the confidence to list their home and move forward.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.8% (as of July 2025)
• Average rates for 30-year conforming mortgage 6.35%**

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 August 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: 115 | -7%
• Inventory: 328 | +15%
• Months’ supply: 4.20 | +11%
• Pending sales: 108 | -1%
• Avg. sales price: $389,645 | -7%
• Days on market: 55 | +15%

Brainerd area

• New listings: 715 | -1%
• Inventory: 1,877 | +15%
• Months’ supply: 4.90 | +11%
• Closed sales: 521 | -3%
• Avg. sales price: $401,158 | +5%
• Days on market: 50 | +19%

Lake Superior area

• New listings: 427 | -5%
• Inventory: 1,114 | +28%
• Months’ supply: 4.20 | +27%
• Pending sales: 349 | -8%
• Avg. sales price: $344,470 | Minimal
• Days on market: 31 | +15%

Southeast Minnesota area

• New listings: 585 | -6%
• Inventory: 1,224 | +9%
• Months’ supply: 2.90 | +7%
• Closed sales: 507 | +5%
• Avg. sales price: $352,788 | +3%
• Days on market: 44 | +19%

St. Cloud area

• New listings: 160 | -1%
• Inventory: 336 | +15%
• Months’ supply: 3.10 | +19%
• Pending sales: 125 | +8%
• Avg. sales price: $298,064 | -8%
• Days on market: 40 | +18%

Mankato area

• New listings: 197 | +11%
• Inventory: 421 | +20%
• Months’ supply: 3.00 | +20%
• Pending sales: 146 | -6%
• Avg. sales price: $336,291 | +15%
• Days on market: 72 | -4%

Northwestern Wisconsin area

• New listings: 596 | -0%
• Inventory: 1,847 | +11%
• Months’ supply: 4.80 | +4%
• Closed sales: 512 | +2%
• Avg. sales price: $350,929 | Minimal
• Days on market: 96 | +28%

West Central Minnesota area

• New listings: 338 | +7%
• Inventory: 835 | +14%
• Months’ supply: 3.90 | +11%
• Pending sales: 259 | +4%
• Avg. sales price: $244,873 | Minimal
• Days on market: 52 | -4%

Bemidji area

• New listings: 84 | -16%
• Inventory: 265 | +23%
• Months’ supply: 6.50 | +27%
• Pending sales: 59 | +55%
• Median sales price: $300,000 | +9%
• Days on market: 50 | +22%

Leech Lake and surrounding area

• New listings: 79 | -7%
• Inventory: 267 | +20%
• Months’ supply: 6.20 | +15%
• Pending sales: 68 | -8%
• Median sales price: $389,000 | +3%
• Days on market: 34 | +55%

Little Falls area

• New listings: 25 | -24%
• Inventory: 45 | +13%
• Months’ supply: 2.60 | +13%
• Pending sales: 17 | -29%
• Median sales price: $255,000 | -11%
• Days on market: 17 | +70%

Southwest Minnesota area

• New listings: 127 | +12%
• Inventory: 298 | +16%
• Months’ supply: 4.30 | -2%
• Pending sales: 100 | -5%
• Median sales price: $175,000 | -3%
• Days on market: 52 | -9%

Headwaters area

• New listings: 151 | -18%
• Inventory: 346 | +21%
• Months’ supply: 6.60 | +10%
• Pending sales: 127 | +44%
• Median sales price: $295,000 | +7%
• Days on market: 66 | +43%