March 2025 Market Insights

Key insights from February 2025 (compared to February 2024)*

• New listings: 4,493 | -5.3%
• Median sales price: $380,000 | +6.1%
• Closed sales: 2,363 | -11.8%
• Pending sales: 3,065 | -7.7%
• Days on market: 69 | +16.9%
• Inventory: 7,147 | -1.5%
• Months’ supply: 1.9 | 0%

The highlights

• Closed sales fell 11.8% for the second month after seeing several months of gains in the Twin Cities metro.
• New listings in the Twin Cities decreased 5.3% compared to this time last year.
• Elevated home prices and higher interest rates continue to make home buyers and sellers hesitant to enter the market.

Closed sales fell 11.8% in February, making it the second month after several consecutive months of gains late last year in the Twin Cities metro area. This is in part due to higher-than-expected mortgage rates, economic uncertainty and a 6.1% increase in median sales price.

Since fewer sellers and new listings entered the market (leading to a 1.5% decrease in inventory), the short supply of homes for sale has caused buyers to compete and prices to rise, with the median sales price reaching $380,000. These higher costs, combined with buyers having fewer options, have been preventing buyers from making offers, which in turn has led to listed homes having an average of 69 days on the market, a 16.9% increase.

This has been especially difficult for first-time home buyers, who do not have home equity to help pay for new homes. It’s a different story for current homeowners, as ATTOM Data shows that 68.6% of homeowners have paid off their mortgage or have at least 50% equity in their home. With that in mind, higher mortgage rates seem to be a major factor in why current homeowners are choosing to stay and enjoy lower interest rates.

Another potential reason for slower sales is that the demand for single-family detached homes is high with the strongest sales levels, but it’s condominiums and townhomes that have been gaining the most inventory and are selling for weaker offers. Buyers who are amenable to expanding their search to look at condos and townhomes may find more options that check the affordability box.

Other good news includes a small increase in new listings since last month (though year-over-year metrics show a decline), and the highest inventory levels in February since 2020. In addition, rates are softening, which could be the catalyst needed to encourage sellers to list for a fruitful spring market.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 2.5% (as of December 2024)
• Average rates for 30-year conforming mortgage 6.65%**

Ready to help

We are here to help you confidently navigate your housing needs, now and always. Whether you are researching future options, or your circumstances require immediate action, reach out to an Edina Realty agent today for guidance.

*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for February 2025.

**Data sourced from Freddiemac.com for informational purposes only. Please contact your mortgage consultant for any questions related to specific loan transactions.

Where you live

Edina Realty serves locations across Minnesota and western Wisconsin. Here’s a look at the market indicators where you live. All % changes are year-over-year.

Alexandria Area

• New listings: 48 | -38%
• Avg. sales price: $267,703 | -6%
• Pending sales: 30 | -36%
• Days on market: 89 | +62%
• Inventory: 152 | -12%
• Months’ supply: 2.00 | -17%

Brainerd area

• New listings: 342 | -14%
• Avg. sales price: $366,803 | +20%
• Closed sales: 205 | +8%
• Days on market: 70 | +13%
• Inventory: 1,026 | +5%
• Months’ supply: 2.70 | +4%

Lake Superior area

• New listings: 191 | -23%
• Avg. sales price: $308,929 | +16%
• Pending sales: 142 | -9%
• Days on market: 56 | +8%
• Inventory: 636 | +16%
• Months’ supply: 2.50 | +19%

Southeast Minnesota area

• New listings: 403 | +6%
• Avg. sales price: $323,146 | +4%
• Closed sales: 282 | -5%
• Days on market: 59 | -3%
• Inventory: 812 | +15%
• Months’ supply: 1.90 | +12%

St. Cloud area

• New listings: 83 | -26%
• Avg. sales price: $296,737 | +10%
• Pending sales: 74 | -10%
• Days on market: 59 | +2%
• Inventory: 172 | -16%
• Months’ supply: 1.50 | -21%

Mankato area

• New listings: 104 | -11%
• Avg. sales price: $272,782 | +7%
• Pending sales: 87 | -15%
• Days on market: 105 | +18%
• Inventory: 310 | +10%
• Months’ supply: 2.30 | +15%

Northwestern Wisconsin area

• New listings: 303 | -47%
• Avg. sales price: $303,243 | +10%
• Closed sales: 231 | +17%
• Days on market: 105 | +8%
• Inventory: 1,246 | +23%
• Months’ supply: 3.40 | +10%

West Central Minnesota area

• New listings: 163 | -17%
• Avg. sales price: $200,838 | +1%
• Pending sales: 146 | +1%
• Days on market: 74 | +4%
• Inventory: 579 | +8%
• Months’ supply: 2.80 | +12%

Bemidji area

• New listings: 35 | -13%
• Median sales price: $285,000 | +4%
• Pending sales: 29 | +4%
• Days on market: 55 | +150%
• Inventory: 142 | +45%
• Months’ supply: 3.30 | +50%

Leech Lake and surrounding area

• New listings: 33 | -28%
• Median sales price: $295,000 | -13%
• Pending sales: 17 | -47%
• Days on market: 91 | +237%
• Inventory: 115 | -7%
• Months’ supply: 2.80 | -7%

Little Falls area

• New listings: 12 | -8%
• Median sales price: $217,000 | -2%
• Pending sales: 11 | -39%
• Days on market: 66 | +120%
• Inventory: 28 | +40%
• Months’ supply: 1.70 | +55%

Southwest Minnesota area

• New listings: 51 | -38%
• Median sales price: $155,000 | -6%
• Pending sales: 43 | -20%
• Days on market: 73 | -11%
• Inventory: 282 | +20%
• Months’ supply: 3.40 | +13%

Headwaters area

• New listings: 65 | +0%
• Median sales price: $290,000 | +2%
• Pending sales: 57 | +90%
• Days on market: 84 | +5%
• Inventory: 312 | +31%
• Months’ supply: 3.40 | +6%