03/25/2026
Minnesota’s housing market in February 2026 featured rising seller activity and increased inventory, offering buyers more choices and easing competition. While new listings grew, buyer demand remained cautious, causing pending sales to decline for a third month and home prices to soften, falling
statewide to a median of
MPR News
+4
Key Market Trends (February 2026):
Prices: Median sales prices dropped
statewide, though they stayed steady in the 7-county Twin Cities metro.
Inventory & Activity: New listings increased, providing more options for buyers. Sellers were more active, often moving up, while first-time buyers faced affordability hurdles.
Sales Pace: Homes took longer to sell compared to last year, with sellers accepting a lower percentage of their original list price.
Market Sentiment: While February was slower, the market is shifting towards a more balanced, albeit "new normal," state with pent-up demand expected to drive a more active spring, especially for appropriately priced homes.
Minnesota Realtors
+5
The market is showing signs of a shift, with more inventory and a slower pace, making it more favorable for buyers than in previous years, provided they can manage the affordability challenges.
MPR News
+1