Navigating the Twin Cities Real Estate Market: Your July 18th 2025 Update

Navigating the Twin Cities Real Estate Market: Your July 18th 2025 Update

Hello, Twin Cities residents! As we move through the heart of summer, the real estate market in Minneapolis-St. Paul continues to be a dynamic landscape. Whether you're considering buying your first home, selling your current property, or simply keeping an eye on local trends, understanding the pulse of our metropolitan area's housing market is key.

Let's dive into the latest numbers for the Twin Cities and what they mean for you.

Current Pulse: Weekly Activity (Week Ending July 5, 2025)

The most recent weekly data from Minneapolis Area REALTORS® provides a snapshot of the market's immediate momentum:

• New Listings: We saw a significant increase of 12.6%, bringing the total new listings to 1,042 for the week ending July 5. This is excellent news for buyers, indicating more homes are coming onto the market.

• Pending Sales: Buyer activity remains strong, with Pending Sales increasing by 5.6% to 888. This shows sustained demand in the market.

• Inventory of Homes for Sale: Overall inventory saw a modest but welcome increase of 4.8%, reaching 9,864 available homes. While still a tight market, this growth suggests a slight easing of supply constraints compared to previous periods.

These weekly trends indicate an active market where new inventory is being absorbed by steady buyer demand.

Deeper Dive: Monthly Trends (May 2025)

Looking at the broader monthly trends for May 2025 provides a more comprehensive view of the Twin Cities market performance:

• Median Sales Price: The median sales price for homes in the Twin Cities region increased by 2.6% to $395,000. This steady appreciation underscores the continued value of homeownership in our area. Another source for May 2025 noted the median sales price at $398,900, up 3.5% from last year, reinforcing this upward trend.

• Days on Market: Homes are taking slightly longer to sell, with the median Days on Market increasing by 7.3% to 44 days. While this is an increase, 44 days is still a relatively quick sale, reflecting ongoing buyer interest.

• Percent of Original List Price Received: This metric remained flat at 100.0%. This is a powerful indicator: on average, sellers are still receiving their full asking price, showcasing the competitive nature of the market and strong buyer willingness.

• Months Supply of Homes For Sale: The supply increased by 8.3% to 2.6 months. While this is an increase, anything under 4-6 months generally signifies a seller's market, indicating that demand still outstrips supply in the Twin Cities.

What Does This Mean for You?

The Twin Cities real estate market continues to lean towards sellers, but with encouraging signs for buyers as well.

For Sellers: Optimistic Outlook with Strategic Needs

The data clearly points to a favorable environment for sellers:

• Strong Prices: Home values are appreciating, and sellers are consistently receiving their asking price. This means you're likely sitting on valuable equity.

• Active Buyers: Despite slightly longer days on market, homes are still selling within a reasonable timeframe, indicating a healthy pool of active buyers.

• Increased New Listings: While this adds to overall inventory, it also suggests that more sellers are confident in entering the market, potentially bringing even more buyers to the area.

Tip for Sellers: Even in a strong market, strategic pricing and excellent presentation (staging, professional photos, decluttering) are crucial. With more listings coming on, standing out can lead to a quicker, more profitable sale. Consult with a local real estate professional to understand your home's unique position.

For Buyers: More Options, But Act Decisively

While the market remains competitive, there are positive shifts for buyers:

• More Inventory: The increase in new listings and overall inventory means more choices are becoming available, which can alleviate some of the intensity buyers have felt.

• Steady Prices, But Be Prepared: While prices are up year-over-year, the rate of increase seems to be moderating. However, with homes still selling at list price, being pre-approved for a mortgage and ready to make a strong offer quickly remains essential.

• Slightly More Time to Decide: The increase in Days on Market from previous extreme lows offers a tiny bit more breathing room for buyers to conduct due diligence, though homes can still go fast.

Tip for Buyers: Get pre-approved and work closely with an experienced local agent who can alert you to new listings immediately. Be prepared to act swiftly when the right home comes along. Don't be discouraged by competition; the increase in listings means your perfect home might be just around the corner.

The National Picture

The Twin Cities market aligns with national trends, where U.S. pending home sales also rose month-over-month and year-over-year, particularly in the Midwest. This broader positive momentum provides a stable backdrop for our local market.

Looking Ahead

The Twin Cities real estate market is a resilient one. Factors like interest rates, local job growth, and continued housing demand will continue to shape its trajectory. We'll keep an eye on these trends to bring you the most current and relevant insights.

Whether you're looking to buy, sell, or invest in the vibrant Twin Cities, staying informed is your best strategy. We're here to help you navigate this exciting market and achieve your real estate goals!