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Real-Time Real Estate Market Intelligence

Stay ahead of the curve with our weekly analysis of the St. Paul & Minneapolis housing market. Data-driven insights for smarter decisions.

Weekly Market Analysis

Twin Cities Market Update — August 17, 2026

This real estate market update for the Minneapolis-St. Paul (Twin Cities) area is current as of August 17, 2026.

1. Median Home Prices and Year-Over-Year Trends

The Twin Cities market is currently characterized by stabilization and "healthier" growth compared to the volatile post-pandemic years.

  • Metro-Wide: The median sales price for the 13-county Twin Cities metro area is approximately $399,000, representing a modest year-over-year (YoY) increase of 1.0%.
  • Minneapolis Dynamics: As of July 2026, the median list price in Minneapolis proper sat at $425,000, down about 2.3% compared to the prior year. However, the median sold price over the last six months has averaged around $365,000.
  • St. Paul Dynamics: St. Paul remains the more affordable of the two cities, with a median sales price of approximately $315,000 (a 2.1% YoY decrease) as of June 2026. Recent closing data suggests a slightly higher median sold price of $343,500 for the city over the last six months.
  • Trend Note: While prices are generally stable, higher-end neighborhoods (e.g., Wayzata, Edina) are seeing longer days on market (up to 60+ days), while updated homes under $500,000 remain highly competitive.

2. Housing Inventory (Months of Supply)

Inventory has improved significantly over the past year, moving the market toward a more balanced state, though it still slightly favors sellers.

  • Metro-Wide Supply: The region currently holds approximately 2.8 months of supply, a notable increase from the 1.2–1.8 months seen in previous years.
  • City-Specific Levels: St. Paul inventory sits at approximately 2.6 months, while Minneapolis is slightly higher at 2.7 months.
  • Property Type Breakdown:
    • Single-Family Homes: 2.5 months supply.
    • Townhomes: 3.0 months supply.
    • Condos: 5.4 months supply (currently the closest segment to a "balanced" market).
  • Active Listings: There were 10,567 active listings in the metro area as of last month, with new listings up 8.8% year-over-year.

3. Mortgage Interest Rate Trends

As of Monday, August 17, 2026, mortgage rates have stabilized following several Federal Reserve adjustments earlier in the year.

  • 30-Year Fixed Rate: Current rates in Minnesota average 6.63%, with some local lenders offering as low as 6.49% for well-qualified buyers.
  • Trend: Rates have trended downward from their early-2026 highs of 7.0%+.
  • Impact: This "modest" decrease has spurred a mid-summer burst in buyer applications, as many consumers have adjusted their expectations to the "new normal" of 6%+ interest rates.

4. Advice for Buyers and Sellers

For Buyers:

  • Leverage is Returning: Roughly 18% of local listings now carry price reductions. Buyers have more negotiating room on homes that have sat for more than 30 days.
  • Don't Waive Protections: Unlike 2021-2022, buyers are successfully keeping inspection and appraisal contingencies in most deals.
  • Be a "Strategic Buyer": Focus on "inner-ring" value plays like Robbinsdale or specific St. Paul pockets (Highland Park) where equity growth remains steady but competition is manageable.

For Sellers:

  • Avoid "Asking Price Optimism": Homes priced too high risk missing the initial "burst" of interest. Sellers who price realistically are currently receiving about 99.6% of their list price.
  • Prioritize Presentation: With more inventory available, buyers are becoming selective. Staging, professional photography, and completed minor repairs are now essential to stand out.
  • Timing: Homes are taking a median of 38–45 days to sell. If you aren't under contract within 21 days, a price adjustment or concession (like a mortgage rate buydown for the buyer) may be necessary.

Note on the St. Paul Rental Market: The rental market in St. Paul remains exceptionally strong in 2026. More than 50% of St. Paul households are renters, and vacancy rates have remained low at approximately 4.0%. Due to a significant slowdown in new multifamily construction and high mortgage rates keeping "would-be" buyers in the rental pool, landlords are seeing accelerating rent growth. St. Paul is currently one of the most favorable markets for rental property owners in the Midwest, with occupancy rates among the highest in the nation.

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