Months supply of inventory has been increasing every year since 2022, when there was only a 1.4 month supply. In May 2025 it increased 4.2% over 2024, to 2.5 months. It still needs to increase another 2.5 months to get to a market balanced between buyer and seller, but at least inventory is increasing rather than tumbling down.
New listings increased a meager 0.6% compared to last May, but at least it increased. The same can be said for both pending and closed sales, which increased by meager amounts.
Days on the market before pending also increased, to 44 days on the market. Percent of list price received was 100%, the same as last May… and median sales price increased 2.6%, to $395,000.
Multiple offers continue to be more common than before the pandemic, a measurable 17.2% of all closed transactions (but more that cannot be verified). Fewer homes for sale than buyers who are looking are keeping prices strong.
The supply of homes in the $250k-$350k price range continues to have the shortest supply… prime first time homebuyer price range. Homes in the $1,000,000+ price range have finally moved into the balanced market range at 6.1 months supply. The supply of condos is about twice that of both single family houses and townhouses.
After the busy spring buying season, the change in supply of previously owned homes fell from 11.8% in April to 5.0% in May. New construction home supply increased from 7.7% in April to 9.4% in May.
The figures above are based on statistics for the combined 13-county Twin Cities metropolitan area released by the Minneapolis Area Association of Realtors.
Never forget that all real estate is local and what is happening in your neighborhood may be very different from the overall metro area.
Check with your Realtor for information on what is happening in your neighborhood.
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
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