Minneapolis Real Estate Outlook: Insights and Predictions for 2025-2026
In the Minneapolis housing market, 2025 is shaping up to be a mixed bag, according to recent predictions. While there's a slight dip in sales, prices are expected to rise modestly and the rental property market remains strong.
Last July, closed sales dropped by 1.7%, from 4,589 to 4,510, compared to the same month in 2024. However, the average sales price also rose by 2.8%, moving from $460,612 in July 2024 to $473,376. The median sales price went up by 2.6% in July 2025, reaching $395,000. On average, homes are selling for $217 per square foot, a slight increase of 0.8% from $215 last year.
Mortgage rates are expected to ease, averaging 6.4% in late 2025, according to Lawrence Yun, the Chief Economist at the National Association of Realtors. This could potentially stimulate demand and support further price growth.
The months supply of inventory remained steady at 2.7 months, indicating a continued seller-leaning market. Zillow predicts a 0.2% price increase in October 2025, followed by another increase of 0.2% in August 2025.
The forecast for the Minneapolis housing market for 2025-2026 suggests slight growth early on, potentially followed by a small dip later next year. Average home values in the Minneapolis-St. Paul-Bloomington area are predicted to be around $390,235. Homes are selling quickly, often going pending in just 18 days.
However, the market in Minneapolis has a similar price change pattern to Rochester, with slight early stability followed by a predicted small decline. Homes are staying on the market a bit longer, with an increase of 11.1% in the days on market until sale, meaning it took an average of 40 days to sell a home in July 2025 compared to 36 days in July 2024.
In July 2025, there was a 5.8% increase in new listings compared to July 2024, with 6,770 new homes listed. The inventory of homes for sale saw a modest increase of 1.8%, with 10,195 homes available compared to 10,017 in July 2024.
Looking ahead to 2026, real estate experts predict a general stabilization or moderate growth influenced by anticipated interest rate cuts and ongoing economic factors. This could potentially improve affordability and support demand after summer 2026. However, detailed localized forecasts specific to Minneapolis for summer 2026 are limited in the available data.
Meanwhile, the rental property market in Minneapolis remains strong, with high occupancy rates and steady rent growth. Brainerd is predicted to see stronger growth by mid-2026. Lawrence Yun anticipates a 6% increase in existing home sales in 2025 and a 10% increase in new home sales.
Despite the slight dip in sales, the Minneapolis housing market continues to show signs of resilience and growth, with sustained demand and a strong rental market. As the year progresses, it will be interesting to see how these trends unfold and how they may be influenced by changes in mortgage rates and economic factors.
Read also:
- chaos unveiled on Clowning Street: week 63's antics from 'Two-Tier Keir' and his chaotic Labour Circus
- Skechers Debuts First American Stores Focused on Athletic Footwear Performance
- Budget discrepancy jeopardizes highway projects' financial support
- Racing ahead in Renewable Energy Dominance: Changzhou, Jiangsu Pushes for Worldwide Renewable Energy Ascendancy
