Twin Cities inventory continues to grow, although at a pace that is slowing down. July 2024 inventory was 11.4% higher than July 2023, August 2024 inventory was 17.7% higher than in August 2023… but July 2025 inventory was only 1.8% higher than last year, according to data from MAAR (Minneapolis Area Association of Realtors).
When you take into account not only the number of homes available for sale but also the rate at which they are selling (months supply of inventory), the supply was the same as last year… a 2.7 month supply. 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. We still have a long way to go to get there.
Breaking it out by price range, only properties priced over $1,000,000 are now in a buyer’s market with a 6.4 month supply. The $250k-$350k price range has the lowest supply at 1.9 months… the only price range currently below 2.0 months. Condos have about twice as much supply as houses and townhouses.
In June, months supply of new construction was the same as last year… in July it was previously owned homes that had the same supply as last year.
New listings increased 5.8% and pending sales increased 4.3% in July 2025 compared to July 2024, but closed sales decreased by 1.7%. Note the significant drop in 2022… when mortgage interest rates increased.
Days on market before pending continues to increase, up to 40 days in July 2025, reflected in a decrease in average list price received to 99.3%, which is still historically high.
Median sales price continued its modest price gains, up 2.6% to $395,000 in July 2025. Multiple offers on at least 15% of closed sales helps keep prices strong. This is still stronger than before the Covid years.
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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