Twin City Real Estate Market Report

---

Twin Cities Housing Market: A Look at Early Summer Trends (June 2025)

The Twin Cities real estate market is always buzzing with activity, and as we head further into summer 2025, the latest data offers some clear insights for both buyers and sellers. While nationally we're seeing a significant increase in housing inventory (up 31.5% year-over-year according to Realtor.com's May report!), the local landscape in the Twin Cities has its own unique rhythm.

Let's break down the key takeaways from the week ending June 21st, and the full month of May.

Weekly Snapshot: A Glimmer of Buyer Opportunity?

For the week ending June 21st, the Twin Cities region showed a few interesting shifts compared to the same week last year:

• New Listings: We saw a slight decrease of 2.3%, bringing the total to 1,519 new homes entering the market. While a dip, new listings are still consistently coming online.

• Pending Sales: Sales that went under contract also saw a decline, down 6.2% to 1,029. This could indicate buyers taking a bit more time or facing ongoing affordability challenges.

• Inventory on the Rise: This is perhaps the most notable weekly trend for buyers! The inventory of homes for sale increased by a healthy 4.9%, reaching 9,939 available properties. More choices for those looking to buy means a potentially less competitive environment. Nationally, inventory topping 1 million for the first time since Winter 2019 suggests a broader trend towards more supply.

May's Monthly Movements: Price Stability Amidst Shifting Pace

Looking at the full picture for the month of May, some key metrics tell us about the market's underlying health:

• Median Sales Price: Good news for sellers, as the median sales price saw a 2.6% increase to $395,000. This demonstrates continued demand and value appreciation in the Twin Cities.

• Days on Market (DOM): Homes are taking a bit longer to find their buyers. Days on Market increased by 7.3% to 44 days. While still a relatively quick pace historically, it suggests a slight easing from the rapid sales seen in recent years. This could be beneficial for buyers who need more time for due diligence.

• Percent of Original List Price Received: Remarkably, this metric remained flat at 100.0%. This indicates that sellers are consistently getting their asking price, highlighting the continued strength of well-priced homes in the market.

• Months Supply of Homes For Sale: This important indicator of market balance increased by 8.3% to 2.6 months. While still firmly in a seller's market (a balanced market is typically 4-6 months supply), this increase signifies a gradual move toward more equilibrium and more options for buyers.

What Does This Mean for You?

• For Buyers: The increase in inventory and Days on Market are positive signs. You might find more options available and potentially have a little more breathing room to make decisions. However, with prices still rising and homes still selling for their list price, competition remains, especially for desirable properties. Being pre-approved and ready to act when the right home comes along is still crucial.

• For Sellers: The market remains strong with increasing median sales prices and homes still selling at or near their original list price. While Days on Market has edged up, strategic pricing and presentation are key to attracting buyers and achieving your desired outcome in this evolving market. The increase in inventory means you'll have more competition, so standing out is important.

Looking Ahead

The Twin Cities housing market continues to adapt. While national trends point to significant inventory gains, our local market shows a more measured increase in supply, coupled with steady price appreciation. This indicates a resilient market, offering opportunities for both sides of the transaction.

Thinking about making a move in the Twin Cities? Understanding these hyper-local trends is essential. Connect with a local real estate expert who can provide tailored insights and guide you through your unique buying or selling journey.

---