Real-Time Real Estate Market Intelligence

As of February 9, 2026, the Twin Cities real estate market is transitioning from a period of "rate-lock" stagnation into a more active, stabilized phase. While inventory remains historically low, a slight easing in mortgage rates has begun to unlock both buyers and sellers, creating a more balanced—yet still competitive—environment.

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

The Twin Cities metro area has seen consistent, moderate price appreciation.

• Twin Cities Metro: The median sale price is approximately $380,000 to $390,000, reflecting a 2.6% to 2.7% increase year-over-year.
• Minneapolis Dynamics: The average home value in Minneapolis sits around $315,907 (up 1.5% YoY), though the median sale price for single-family homes is higher, frequently reaching $387,000+.
• St. Paul Dynamics: St. Paul remains the more affordable of the two cores, with an average home value of approximately $283,508 (up 0.7% YoY). The median sale price in St. Paul typically hovers around $296,000, making it a primary target for first-time buyers.

2. Housing Inventory (Months of Supply)

Inventory levels are beginning to recover but remain in "seller's market" territory (traditionally defined as less than 5–6 months of supply).

• Current Supply: The Twin Cities currently has 1.8 to 2.0 months of supply.
• Inventory Growth: Total active listings are up roughly 6% to 10% compared to early 2025. While this gives buyers more options than in previous years, the volume is still nearly 17% below pre-pandemic norms.
• Market Velocity: Homes are going from "active" to "pending" in an average of 31 to 38 days, depending on the specific neighborhood.

3. Mortgage Interest Rate Trends

Mortgage rates have retreated from their late-2024/2025 peaks, providing much-needed relief to buyer's monthly budgets.

• 30-Year Fixed Rate: As of today, the average rate for a 30-year fixed loan in Minnesota is approximately 6.04% to 6.06%.
• Trend: Rates have decreased by roughly 64 basis points (0.64%) compared to this time last year. Experts anticipate rates will remain in the low-6% or high-5% range for the remainder of the 2026 spring season, which is expected to trigger a significant "surge" in activity from buyers who have been waiting on the sidelines.

4. Market Advice for Buyers and Sellers

For Buyers:

• Expect Competition in the "Missing Middle": While luxury and high-end markets have cooled, entry-level homes in the $250k–$400k range still see multiple offers.
• Negotiation Power is Up: Unlike the 2021–2022 market, buyers now have more leverage to ask for inspection repairs or seller-paid closing costs, particularly on homes that have been on the market for more than 21 days.
• Get a "Full Approval": With rates stabilizing, more buyers are entering the market. A standard pre-qualification may not be enough; a "verified" or "full" underwritten approval is recommended to win in competitive Minneapolis/St. Paul neighborhoods.

For Sellers:

• Pricing Strategy is Paramount: Buyers are highly rate-sensitive. Overpricing your home by even 2% can lead to "stale" status. If you don't have an offer within 14–21 days, the market is signaling that a price adjustment is needed.
• Focus on Energy & Remote Work: In 2026, buyers are prioritizing energy-efficient features and dedicated office spaces. Highlighting these in your listing can help you stand out.
• Spring is Starting Early: Because of the recent dip in rates, the traditional "Spring Market" has moved up. Listing in early February rather than waiting until April can help you capture motivated buyers before inventory increases further.

---

A Note on the St. Paul Rental Market: The rental market in St. Paul continues to show exceptional strength and stability. As of February 2026, St. Paul was ranked as the #3 market nationally for short-term rental investment by AirDNA, thanks to its mix of affordability and steady demand. Average rents for long-term apartments have seen a modest 2.8% annual increase, with the average rent sitting at approximately $1,519. The rollback of previous rent stabilization measures has reignited investor interest, particularly in areas like Highland Bridge and Mac-Groveland.