Year-over-year Twin Cities inventory has been growing since 2022, but slowing down this year. This is the first month that inventory was less than last year at this time, although at -0.2% close enough to be a virtual tie. It does, however, suggest a new trend of falling rather than rising inventory.
When you look at months supply of inventory, which also takes into account the rate at which properties are selling, it fell from 2.8 months in 2024 to 2.7 months in 2025. This means it would take 2.7 months to sell all the homes currently for sale if no new listings came on the market. The red line on the chart below shows a market balanced between buyer and seller. It is still a buyer’s market.
Breaking it out by price range, only properties in the $1,0000,000+ price range are in a seller’s market, with a 6.1 months supply. The price range in lowest supply is the $250k-$350k range, with a 1.9 months supply. Condos continue to have the most supply, more than twice that of houses.
In August, the supply of previously owned homes fell 4.2% compared to last year, while new construction was 1.8% over last year.
New listings in August have fallen every year since 2022, and while August pending and closed sales also fell in 2022-23-24, both increased a bit in 2025.
Days on market before pending continued its steady increase, now at 42 days. Percent of list price was the same as last August, with an average sale price 98.7% of list price.
Median sales price increased 2.8% over August 2024, to $399,999. Multiple offers on at least 13.4% of closed sales are still more than before the COVID years, helping keep prices strong.
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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