Twin Cities Real Estate Market vs. U.S. Housing:

The July 2025 housing data reveals a clear split between the national housing market and the Twin Cities real estate market. While U.S. trends suggest a cooling shift toward buyers, Minneapolis and St. Paul homes are still performing with strength.

National Market Snapshot (July 2025):

• New listings rose 7%

• Days on market increased 13%

• Price reductions surged nearly 30%

These numbers show that buyers are gaining bargaining power in many regions.

Twin Cities Market Snapshot (July 2025): (Data courtesy of Minneapolis Area REALTORS® and NorthstarMLS)

• New Listings: Up 5.8% across Minneapolis, St. Paul, and the metro suburbs

• Pending Sales: Up 4.3%

• Median Sales Price: $395,000, up 2.6% year-over-year

• Days on Market: Just 40 days (compared to much slower national averages)

• Inventory: Up a modest 1.8%—far less than the national 15.9% jump

• Months of Supply: 2.7 months, signaling a tighter seller’s market than the U.S. average of 4.7 months

In short, the Twin Cities housing market continues to outperform the national trend. Minneapolis and St. Paul buyers still face competition for well-priced homes, while sellers benefit from resilient pricing and faster sales.

For the luxury housing market in the Twin Cities, stability remains the headline. Homes above $1M in Minneapolis and St. Paul are holding value, echoing Realtor.com’s national outlook that high-end real estate remains resilient.

Key takeaway: National housing headlines may talk about a buyer’s market, but in the Twin Cities real estate market, local strength is still defining the story.

❓ Twin Cities Housing Market FAQs

Q: Is the Twin Cities real estate market stronger than the U.S. housing market?
A: Yes. In July 2025, Minneapolis–St. Paul outperformed national trends. While the U.S. saw rising days on market (+13%) and a 30% increase in price reductions, the Twin Cities reported stronger sales activity, faster closings (40 days on market), and a higher median sales price increase (+2.6% vs. +2.0% nationally).

Q: Is Minneapolis a buyer’s or seller’s market right now?
A: Minneapolis remains closer to a seller’s market. With just 2.7 months of housing supply compared to the national average of 4.7 months, demand in Minneapolis continues to outpace supply, giving sellers an advantage.

Q: What about St. Paul—buyer’s or seller’s market?
A: St. Paul mirrors Minneapolis trends, with tight inventory and rising prices. Buyers may see more options than last year, but competition for well-priced homes remains high, making St. Paul lean seller-friendly.

Q: How is the luxury housing market in the Twin Cities performing?
A: Luxury homes in Minneapolis and St. Paul remain stable. While many U.S. markets are seeing price reductions, the Twin Cities luxury market is holding strong, with homes over $1M selling close to list price and in less time than national averages.

Q: What does this mean if I’m buying or selling in the Twin Cities?
A: For sellers in Minneapolis–St. Paul, pricing power is still strong. For buyers, the market is more competitive locally than nationally, but opportunities exist—especially with expert guidance and timing.

If July’s numbers have you thinking about your next move in Minneapolis, St. Paul, or anywhere in the Twin Cities, let’s connect—I’d love to help you navigate this market with confidence.