Key Insights on the 2025 Housing Market for the 4th Quarter

Housing activity across the Twin Cities has remained steady and predictable through 2025. 

Showings were slightly stronger this summer and early fall compared to last year. As we expect each year, a seasonal slowdown is now underway. Mortgage rates have eased slightly, and as they dip, buyer activity tends to rise.

Sales are up about 9% from last September, and new listings have risen about 6%. Both are still below long-term averages, but show encouraging progress toward normal levels based on historical trends. Homes are selling in about three weeks, on par with pre-2020 patterns. Coupled with sellers receiving around 98.5% of their asking price, this represents healthy and realistic negotiations. The median home price is up 2.6% year over year which is slower than the spikes of the early 2020’s, yet consistent with sustainable growth.

Inventory has expanded to roughly a 2.8-month supply, short of the “balanced” four-month mark and improved from previous lows.

Overall, the data points to a stable, slowly recovering market: buyers have a bit more breathing room, sellers still hold an advantage, and steady mortgage rates could unlock more activity heading into next year. The key takeaway? Minnesota’s housing market is finding its balance again.