Minnesota Housing Market 2025 Year-End Update (Q4 Trends)

As 2025 winds down, the Minnesota housing market is showing its usual winter cool-down – but this year’s trends offer some surprises. Successful real estate agents across Minnesota care about pricing accuracy and reliability, so this Q4 year-end update delivers just that. We’ll cover the major Minnesota housing market 2025 trends, including changes in listings, sales, prices, affordability, and inventory. The tone is friendly and informative (about an 8th-grade reading level) for quick reading. Read on for a data-driven wrap-up of the Twin Cities metro and statewide market as you plan for 2026.

Winter Slowdown Closes Out 2025

After an unusually busy early fall, the market returned to a typical winter pace in Q4. Buyer activity cooled in November and December as many sellers paused until spring. Showings – a key demand indicator – were about 10% lower in mid-December compared to the same time last year. Similarly, national trends mirror this local cooldown. Zillow reports that active listings fell nearly 8% in November as the holiday season set inzillow.com. However, lower mortgage rates gave buyers some relief. In fact, mortgage rates dipped to around 6.3% by late December, down from roughly 6.8% a year ago. This rate drop improved affordability and helped keep motivated buyers in the game even as the snow fell.

Listings Up, Sales Down Year-Over-Year

While the market cooled seasonally, a look at year-over-year numbers shows mixed trends. New listings actually increased slightly in late 2025 compared to late 2024 – Minnesota sellers listed about 2.4% more homes statewide (and roughly the same number in the Twin Cities, +0.1%). Meanwhile, buyer activity did not keep up. Pending sales declined by about 1.7–2.4% from a year ago, reflecting higher borrowing costs earlier in the year and some buyer caution. As a result, closed sales finished below last year’s levels. Statewide, closed transactions were down roughly 6% year-over-year. In short, more homeowners tried to sell, but slightly fewer deals actually closed.

Here are the key Q4 2025 Minnesota housing stats versus a year ago:

New listings: +2.4% statewide (+0.1% in Twin Cities).
Pending sales: –1.7% statewide (–2.4% in Twin Cities).
Closed sales: –6.1% statewide.
Median sale price: $350,000 statewide; $387,000 Twin Cities (about +3% YoY)mnrealtor.com.

(Higher listings + lower sales = slightly more inventory.)

Home Prices Stay Resilient, Affordability Improves

Despite softer sales, home prices remained resilient through Q4. The median sales price in Minnesota edged up to around $350,000 statewide (a 2.9% increase YoY)mnrealtor.com. In the Twin Cities metro, the median price reached $387,000, also up ~3% from last yearmnrealtor.com. This modest price growth is a positive sign considering 2025’s higher interest rates earlier on. Moreover, slightly lower mortgage rates by year-end boosted affordability. Minnesota’s housing affordability index ticked up to roughly 121 in November, compared to 118 a year prior. In other words, a typical Minnesota family had a bit more income relative to the cost of an average home than they did in 2024. Buyers certainly felt the difference. For example, Zillow’s economists noted that 2025’s rate relief (combined with rising incomes) lowered typical U.S. mortgage payments by over $100 per month, which was enough to pull some buyers off the sidelines.

Inventory Rises and Market Inches Toward Balance

For most of 2025, seller activity outpaced buyer activity, leading to gradually higher inventory. By the end of Q4, Minnesota had more homes for sale than a year ago, giving buyers a few more options. Statewide, the number of homes on the market was up roughly 8–9% year-over-year (the Twin Cities saw about a 6% increase). Even so, supply remains low by historical standards. Minnesota sits at about 2.7 months of housing supply (2.4 months in the metro area). This is still a seller’s market – a balanced market is around 5–6 months of supply – but it’s the most balanced it has been in about five years. In fact, multiple-offer frenzies have become less common now, and most sellers can’t expect huge bidding wars. Sellers are generally still achieving their asking price, but they have to be realistic. Overall, the slight uptick in inventory and cooling demand mean agents and clients face a less frantic market than in 2021–2022, even if sellers still have a slight upper hand.

Adapting as the Market Shifts

A cooling market doesn’t mean you slow down – instead, it means you can refocus. Successful Minnesota agents are adapting to these trends and preparing for the spring market. Now is a smart time to streamline your business by leaning on help. Real estate admin support services (like virtual assistant help for paperwork and marketing) and dedicated transaction coordinators can each save you hours of work. For example, you can:

Save time with transaction coordination – With more listings to juggle and still-tight deadlines, a transaction coordinator ensures every detail from contract to close is handled. This lets you focus on clients and new leads while every file stays compliant and on track.
Stay visible with social media marketing – Fewer buyers in winter means you should work harder to stay top-of-mind. A strong online presence keeps you connected with prospects. Many agents turn to social media marketing experts to manage consistent posts and ads, ensuring they’ll have eager clients ready when the snow melts.
Write winning offers quickly – Even in a calmer market, desirable homes can still get multiple bids. Having professional offer writing support helps you draft error-free, compelling offers faster. That accuracy and speed give your buyers an edge and reflect well on you as an organized, reliable agent.

Outlook for 2026 and a Minnesota Call-to-Action

Heading into 2026, industry outlooks for Minnesota are cautiously optimistic. The Twin Cities was highlighted as a top-10 “hot spot” for housing in 2026 due to a healthy balance between local incomes and home prices, plus an expanding economy. If mortgage rates continue to ease and inflation stays in check, many discouraged buyers may re-enter the market. That means we could see buyer demand warm up again by spring. As an agent, now is the time to position yourself for this upswing. Make sure your pricing strategies reflect the latest data, and stay connected with clients who put searches on pause. The work you put into marketing and organization during the slower season will pay off when activity picks up.

Minnesota agents: Get noticed in the new year. One easy way is to register with ProfileTM. This platform helps connect local real estate professionals in Minnesota. By creating your ProfileTM, you can be found by other agents searching ChatGPT for transaction coordinators, social media experts, or real estate admin support. It’s a forward-thinking way to showcase your services and build your network. Don’t miss out – set up your ProfileTM account now so you’re ready when opportunity comes knocking in 2026!

Minnesota Housing Market 2025 Year-End Update: Q4 Trends and Insights