Buyers gain ground on better inventory and lower rates in 2025
Statewide closed sales increased 2.4% in 2025 to the highest level since 2022, while new listings rose 4.6% to a three-year high. Sellers grew more confident and willing to move throughout the year and buyers remained active with sales rising in nine of twelve months. Though inventory ended lower, most of 2025 offered buyers more options than 2024.
“While buyers were pleased to see more options, not everything was in their ideal price range or location. As the pressure eased, buyers were thoughtful and more selective during their search and also more willing to compromise. Overall, market conditions did favor sellers in most areas.” —Wendy Uzelac, Minnesota Realtors® President
The statewide median price reached a record $355,000 and marked the 14th consecutive year of gains. With mortgage rates, taxes, and insurance factored in, the typical monthly payment on the median-priced home reached approximately $2,600 statewide. Luxury sales and move-up buyers with equity outperformed first-time buyers, who faced steeper challenges.
Despite affordability challenges, Minnesota remains well positioned for continued success with above-average incomes and homeownership rates, below-average home prices and unemployment, and strong economic fundamentals.
https://www.mnrealtor.com/blogs/mnr-news1/2026/01/27/2025-minnesota-annual-housing-market-report
2025 statewide key metrics
% represents year-over-year change
- New Listings—96,408 (up 4.6%)
- Pending Sales—68,050 (up 1.7%)
- Closed Sales—68,432 (up 2.4%)
- Median Sales Price—$355,000 (up 2.9%)
- Days on Market—44 (up 4.8%)
- Percent of List Price Received—97.8% ( down 0.1%)
- Inventory —12,550 (down 0.5%)
- Months Supply—2.2 (down 4.3%)