The Minnesota housing market continues to evolve—and while inventory levels, interest rates, and buyer behavior shift, smart buyers and sellers still have real opportunities. Let’s unpack what’s happening on the ground.

The Current Landscape

Right now, Minnesota is averaging about 3 months of housing inventory—which technically keeps us in a seller’s market. However, this isn’t the red-hot market of years past.

• Homes are selling for an average of 99% of their list price, signaling that buyers are negotiating more and sellers need to price strategically.

• Interest rates are holding steady around 6.85%, which is higher than pandemic-era lows but still manageable for many buyers.

• Despite solid demand, we still don’t have enough homes on the market to fully meet buyer needs—especially in popular school districts, near lakes, and in turnkey condition.

• That said, today’s buyers are much more selective. They’re willing to wait for the right property, and they’re less likely to rush into bidding wars.

Tariffs Are Quietly Driving Up Costs

While often discussed in economic or political circles, tariffs are starting to influence local real estate—particularly in the luxury and new construction segments.

What are tariffs?
Tariffs are taxes imposed on imported goods. For real estate, this impacts everything from steel and lumber to flooring and appliances. As import costs rise, so do the expenses associated with building or remodeling homes.

In Minnesota, this means:

• New-build homes will likely get more expensive in the months ahead.

• Remodeling older homes is becoming pricier, which affects the pricing and desirability of turnkey properties.

• Well-maintained homes built prior to these cost increases are now more attractive, especially if they’re priced below current replacement value.

Shifting Luxury Market & Out-of-State Trends

Traditionally, Minnesota has attracted out-of-state buyers from markets like New York, California, and Canada, thanks to our strong schools, job opportunities, and high quality of life. But in recent months, interest from these buyers has slowed. The result?

• Less competition in the luxury market

• More negotiation room for local buyers and investors

If you’re looking for a home or investment below replacement cost, opportunities are beginning to emerge in high-quality neighborhoods.

What This Means for You

Whether you're a move-up buyer, investor, or first-time homeowner, this market still has value—but strategy matters more than ever.

 If you're a buyer, now is a smart time to consider properties that would be costlier to build new.
 If you're a seller, thoughtful pricing and preparation are key to standing out in a more discerning market.
 If you're an investor, listings priced below replacement cost could offer significant upside.+

Let’s Talk Strategy

Whether you're buying, selling, or exploring options, I'm here to help you navigate the market with confidence.