Weekly Market Analysis
Twin Cities Market Update — September 7, 2026
This real estate market update provides a snapshot of the Minneapolis-St. Paul (Twin Cities) metropolitan area as of early September 2026.
1. Median Home Prices and Year-Over-Year Trends
The Twin Cities market is currently experiencing a "healthy reset," with prices stabilizing after years of volatile spikes.
- Twin Cities Metro Area: The overall median sales price for the 16-county metro region has climbed to approximately $408,000 to $410,000, representing a 2.1% to 3.3% increase year-over-year.
- Minneapolis: The city remains the higher-priced hub of the two, with a median sale price of approximately $370,000 to $375,000. Prices here have shown more volatility, with some reports indicating a 7.0% increase in the last month compared to the previous year, though long-term trends suggest a shift toward a more "neutral" pricing environment.
- St. Paul: St. Paul offers a more accessible price point with a median home price holding steady at approximately $295,000. Notably, price growth in St. Paul has been flatter (0% change year-over-year in some segments), making it a key focus for value-seeking buyers.
2. Housing Inventory and Months of Supply
Inventory has reached a seven-year high for the region, providing significantly more breathing room than the "gridlock" years of 2021–2023.
- Twin Cities Metro: Total inventory is up approximately 6.7% to 9.1% year-over-year. The "Months of Supply" currently sits at 3.0 months. While this still technically favors sellers (a balanced market is typically 5–6 months), it is a major improvement for buyers.
- City Dynamics:
- Minneapolis: Supply ranges from 2.5 to 3.1 months. The city has seen an 18% surge in active listings, reducing the hyper-competitive atmosphere.
- St. Paul: The market remains slightly tighter than Minneapolis with a 2.6-month supply. Homes in St. Paul are moving quickly, averaging roughly 32 days on market, compared to the metro-wide average of 40–42 days.
3. Current Mortgage Interest Rate Trends
Mortgage rates have remained elevated but stable through the end of summer 2026.
- 30-Year Fixed Loans: As of September 6, 2026, average rates in Minnesota are hovering between 6.71% and 6.99%.
- Trend: Rates have drifted within a narrow band over the last few months, moving from 6.66% to 6.71% in late August. This "sideways" movement has brought a level of predictability to the market, allowing buyers to budget with more certainty than during the rapid-hike periods of 2024.
4. Market Advice for Buyers and Sellers
For Buyers: The "High-Leverage Window"
- Be Selective: With inventory at a seven-year high, you no longer need to make "sight-unseen" offers. Take time for thorough due diligence and inspections.
- Negotiate on Condition: As days on market (DOM) increase to 40+ days, sellers are becoming more open to inspection repairs and closing cost credits.
- Target St. Paul for Value: If Minneapolis prices feel out of reach, St. Paul’s stable $295k median price offers a significant discount with comparable urban amenities.
For Sellers: Pricing for the "New Normal"
- Curb Appeal and Readiness: Homes that are "turn-key" still command 100%+ of asking price in St. Paul. However, properties needing work are sitting longer.
- Avoid Overpricing: The era of "market gridlock" where any price would stick is over. Buyers are empowered by choice and will bypass homes priced based on 2022's peak frenzy.
- Timeline Awareness: Expect your home to be on the market for 30–45 days. Plan your move accordingly, as the "sold in 48 hours" trend has faded for most standard listings.
Note on St. Paul Rental Market Strength
The St. Paul rental market is currently one of the most "landlord-favorable" environments in years. While for-sale prices have stabilized, the rental side is tightening due to a "cratered" pipeline of new multifamily construction—permits dropped from over 2,000 annually to just ~350 in 2025–2026. High mortgage rates have kept would-be buyers in the rental pool, leading to occupancy rates that are among the highest in the nation. Despite a local 3% rent stabilization ordinance, median rents for larger family-friendly units (3+ bedrooms) have continued to rise, even as smaller one-bedroom units saw a slight seasonal dip to around $1,050.