In September 2025 new listings in the Twin Cities region increased 5.2%, pending sales
were up 7.9%, and closed sales were up 7.5%.
In spite of the rise in new listings, increased sales resulted in a drop in inventory of 1%.
When you look at months supply of inventory, which also takes into account the rate at which properties are selling, it fell from 2.9 months in 2024 to 2.7 months in 2025, a drop of 6.9%. 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 seller’s market.
It is the mis-match between supply and demand that is causing prices to continue to rise, but interesting to see how steady the increase in median home sales prices have been since May.
Days on market before pending continue to rise, percent list price received has dropped minutely, but median sales price continues to rise. In spite of the rise in median sales prices, they are still 22% below the national median.
With fewer homes on the market than buyers ready to buy, perhaps with the added incentive of slightly lower mortgage rates, there were more trackable multiple offers than last year.
Breaking it out by price range, it is obvious that homes in the $250k-$350k are in highest demand with only a 2.1 month supply, but homes in the $350k-$500k price range aren’t far behind with a 2.4 month supply. Even homes priced $500k-$1,000,000 have only a 3.4 month supply. Only homes priced over $1M are barely reaching a buyer’s market. Condos continue to have the largest months supply by type, but the gap is a little bit smaller this month.
In September, the supply of previously owned homes fell 4.0% compared to last year, while new construction supply increased 5.3% over last year.
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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