Minnesota
Housing Market
The landscape of Minnesota's housing market evolves with shifting home prices and demand. Houzeo's housing market report tracks constant changes in supply and demand across Minnesota. Our report offers real-time insights to help you make informed decisions.
Overview
Supply
Demand
Buy or Sell
Market Insights
MigrationMinnesota Housing Market Overview
Home prices in Minnesota show a 5.7% YoY growth as of January 2025. The constant growth in home prices indicates the strength of the housing market. Currently, the median home price in Minnesota is $342,900. The number of homes sold increased by 5.6% YoY.
You can also check the market competitiveness through median days on the market. Homes in Minnesota now spend 53 days on the market before going under contract. All these metrics collectively indicate changes in the Minnesota housing market's pace and affordability.
What Does It Mean for Home Buyers and Sellers?
You can also check the market competitiveness through median days on the market. Homes in Minnesota now spend 53 days on the market before going under contract. All these metrics collectively indicate changes in the Minnesota housing market's pace and affordability.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: The Minnesota housing market shows strong price momentum right now. Minnesota home values have climbed to a median of $342,900, reflecting a 5.7% increase from last year. This price growth comes with increased sales activity, as 3,403 homes changed hands in January 2025. Minnesota homes now stay on the market for 53 days. This gives you more time to evaluate your options and negotiate a good deal.
- If You're a Seller: Your property enters a market with robust price appreciation. The 5.7% annual price growth signals strong buyer confidence in Minnesota homes. Moreover, sales volume is up by 5.6% from last January. Houses in Minnesota may take longer to sell, but demand remains healthy. This balanced market environment should help you get the sale price you're looking for.
Minnesota Housing Supply
Minnesota's housing supply is expanding as inventory grows and market conditions shift. Minnesota's houses for sale increased by 4% year over year in January 2025, bringing the total number of available listings to 13,786. The median days on market has gone up to 54 days, which favors buyers. On the other hand, there are only 3 months of supply, which is a characteristic of a seller's market. The growing inventory is matched by strong demand in the Minnesota housing market.
What Does It Mean for Home Buyers and Sellers?
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: More homes for sale in Minnesota mean increased choices for your home search. With the median days on market increasing, buyers may get more negotiating power. However, home prices continue to appreciate, so you should act quickly on well-priced properties.
- If You're a Seller: Minnesota real estate continues to see price growth, with a 5.7% YoY increase in the median home price. The 3-month supply period also favors sellers. Higher inventory means more competition, so it's crucial to price your home right.
Minnesota Housing Demand
The percentage of Minnesota houses selling above the list price is a key indicator of housing demand. When more homes sell for higher than the list price, it shows strong buyer competition and high demand. A decline suggests more supply. Tracking this trend helps you gauge market competitiveness.
23% of homes in Minnesota sold above the list price in January 2025. Price drops increased from last year, with 24.8% of homes with price drops. The 98.2% sale-to-list ratio points to balanced negotiations with a slight advantage for buyers. Hence, both parties must work to reach their price goals.
What Does It Mean for Home Buyers and Sellers?
23% of homes in Minnesota sold above the list price in January 2025. Price drops increased from last year, with 24.8% of homes with price drops. The 98.2% sale-to-list ratio points to balanced negotiations with a slight advantage for buyers. Hence, both parties must work to reach their price goals.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: In January 2025, 24.8% of MN homes saw price drops. These reductions, along with the extended median days on market, will strengthen your negotiating position in Minnesota's housing market.
- If You're a Seller: The current Minnesota housing market rewards accurate initial pricing strategies, as homes sell at 98.2% of their list prices. This indicates that price adjustments are becoming common. As a seller, it's key to adjust to current market expectations in order to attract more bids.
Is it a Buyer's or Seller's Market in Minnesota?
Strong
Buyer
Buyer
Balanced
Seller
Strong
Seller
Buyer’s Market
Seller’s Market
Balanced: Neither buyers nor sellers dominate the market. Supply meets demand, prices stay stable, and both parties negotiate on an equal footing.
Is it a Buyer's or Seller's Market in Minnesota?
With a 5.7% price increase, the Minnesota housing market maintains neutrality but shows early signs of favoring buyers. Minnesota homes now spend 53 days on the market, providing buyers more time to consider their decisions. 24.8% of homes with price drops means increased seller flexibility. These emerging trends signal rising negotiation power for buyers.
However, the Minnesota real estate market preserves key elements that prevent a complete buyer shift. A modest 4% inventory growth keeps buyer options in check. The tight 3-month supply sustains healthy competition among buyers. Sellers can expect continued interest despite fewer above-list offers. These stable conditions help maintain market equilibrium.
Minnesota Housing Market Insights
The current Minnesota housing market is more competitive than the nationwide market. The rise in Minnesota house prices outperforms the national average. The median home price in Minnesota ($342,900) is 18% lower than the national median. Trends indicate growing options for buyers. There are currently 13,786 homes for sale in the North Star State.
Housing markets like Minneapolis and Plymouth have cooled due to low competition. Homes in such cities spend an average of 55-60 days on the market, and sell for about 1% below list price. However, Minnesota housing market predictions for 2025 suggest continued growth in some regions, as the market adjusts to economic factors.
Overall, Minnesota's housing market is neutral but shows early signs of favoring buyers. If you're thinking of buying a house in Minnesota, take into account moving expenses and HOA fees as well.
Housing markets like Minneapolis and Plymouth have cooled due to low competition. Homes in such cities spend an average of 55-60 days on the market, and sell for about 1% below list price. However, Minnesota housing market predictions for 2025 suggest continued growth in some regions, as the market adjusts to economic factors.
Overall, Minnesota's housing market is neutral but shows early signs of favoring buyers. If you're thinking of buying a house in Minnesota, take into account moving expenses and HOA fees as well.
Nationwide Migration Trends
Minnesota attracted significant inbound migration during winter 2024-2025's peak moving season. Over 2,000 residents searched for in-state homes from Nov '24 to Jan '25. Hordes of new homebuyers arrive from New York, California, and Illinois. The exceptional quality of life and thriving job market draw families to the Minnesota market. Cities like Dayton, Otsego, and St. Michael welcome the most new residents.
This migration pattern reflects the broader cost of living index trends. Minnesota's index is a good 6% lower than the national average.
This migration pattern reflects the broader cost of living index trends. Minnesota's index is a good 6% lower than the national average.
Frequently Asked Questions
How is the housing market in Minnesota?
The North Star State's housing market landscape is robust despite increasing mortgage rates. Homes for sale in Minnesota are in high demand. Statewide prices rose 5.7% YoY in January 2025. Metros like Rosemount and St. Cloud saw significant price growth.
What are the cheapest cities in Minnesota?
If you're moving to Minnesota from expensive places like New York or California, you will pay at least 30% to 55% less to buy or rent a house. Hibbing ($160k) and Albert Lea ($231k) have the lowest median home sale prices, and are among the cheapest places to live in Minnesota.
Should I wait for some time before buying a house in Minnesota?
As a buyer, you can get a fair deal with stable prices and a growing inventory of Minnesota homes. The average home price in Minnesota is currently $342,900. If you're buying a house in Minnesota, you should first get a mortgage pre-approval. You will also need to budget for a down payment of up to 10%.
How can I list my home for sale in Minnesota?
You can list your home for sale with a Flat Fee MLS Minnesota listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀
What is the cost of living in Minnesota?
The cost of living in Minnesota sits at an index of 94.1. The state costs 3.9% less than the national average. The housing index of 82.3 also reflects lower home prices. A median home costs $342,900 in Minnesota today, 18% lower than the national median. You can find out more with our free Minnesota cost of living calculator.
How does Minnesota's housing market compare to the national market?
Minnesota's housing market is outperforming the national market, with more substantial price growth. There is also high demand due to relocation from other states and Minnesota's low cost of living.
Is now a good time to buy or sell a home in Minnesota?
It depends on the current trends in housing prices and inventory in your city. Sellers can benefit from stable demand and rising prices. However, if mortgage rates are stable with more than 6 months of supply, it's the best time to buy a house in Minnesota.
What is the average mortgage rate for buyers in Minnesota?
The average mortgage rate for buyers in the Minnesota real estate market fluctuates between 6.25% and 6.96%. Before you apply for a mortgage, make sure to check your credit score and the current mortgage rates with lenders.
When will house prices drop in Minnesota?
As per the Minnesota housing market predictions for 2025, it's implausible that the average house price in Minnesota will drop. In fact, home prices in Minnesota are projected to grow along with the housing demand in 2025.
What are the Minnesota housing market predictions for 2025?
The Minnesota housing market should stay neutral through 2025. The market shifts between buyer and seller control throughout the year. Sellers dominate May and June with higher demand and prices. Buyers find advantages in January, February, and September with higher supply and median days on the market.
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