Twin Cities Real Estate Market Update: Fall 2025

The Twin Cities real estate scene is always buzzing with change, but this fall, there’s a special energy in the air. Whether you’re buying, selling, or just curious, here’s what’s happening across Minneapolis and St. Paul—and what it means for you.

Inventory: A Subtle Shift

After a couple of years marked by tight inventory, we’re finally seeing more homes hit the market. Sellers who waited out the uncertainty of previous seasons are now listing, giving buyers more choices than they’ve had in recent years. While we’re not in a full-blown buyer’s market yet, the balance is shifting ever so slightly.

Prices: Steady, With Pockets of Growth

Home prices in the Twin Cities have remained steady overall, with some neighborhoods seeing modest increases—especially those with top-rated schools or convenient commutes. Sellers are still getting solid offers, but the bidding wars of 2021 and 2022 have cooled. Buyers, meanwhile, are gaining negotiating power, particularly on homes that need a little TLC.

Interest Rates: The New Normal

Interest rates remain higher than the historic lows we saw earlier in the decade, but they’ve stabilized. Many buyers are adjusting to this “new normal,” recalculating budgets and setting realistic expectations. Creative financing options and adjustable-rate mortgages are making a comeback as buyers look for ways to stretch their dollars.

What Does This Mean for You?

• Buyers: More options, less competition, and the chance to negotiate repairs or closing costs.
• Sellers: Well-presented homes in desirable locations are still moving quickly, though pricing competitively is key.
• Investors: The rental market remains strong, with steady demand for single-family homes and multifamily units alike.

Looking Ahead

Experts predict a stable market through the end of 2025, with gradual increases in inventory and measured price growth. Whether you’re making a move now or just keeping an eye on trends, staying informed will help you make the best decisions for your future.

Have questions about your neighborhood or want to know how these trends affect your plans? Reach out anytime—we're here to help!