The months supply of inventory in 2025 increased each month compared to 2024 for the first 7 months, showed no change from the previous year for 4 months, then in December fell below the previous year for the first time in 2025.
This is a reflection of a drop in new listings and an increase in closed sales. Pending sales showing a notable drop, forecasting an expected drop in sales in January 2026.
Overall inventory fell for the second month in a row in December.
Multiple offers were at the highest level in December since 2021, indicating competition for a shortage of homes for sale.
Days on market before pending continued to increase, but median sales price also continued to increase even though percent of list price received dropped almost imperceptibly to 96.8%.
December 2025 median sales price was 2.7% over December 2024. Sales price increase for all of 2025 was 2.6% over 2024.
Months supply of homes by price range had a different shape in December 2025…
- Supply of homes under $120k increased 25.5% to 4.3 months, the highest of all price ranges
- Supply of homes over $1,000,000 decreased by 38.7% to only 3.8 months, the lowest since February 2023
- Supply of homes $250k-$350, most in demand by first-time homebuyers, is only 1.4 months
Months supply of condos is still about twice that of condos. Supply of previously owned homes dropped by 12.5% while the supply of new construction homes increased 9.4% compared to December 2024.
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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