Hey, what’s up everyone? Joe Schwartzbauer, here with another Twin Cities real estate market update.

As usual, I’m looking specifically at single-family homes in the seven-county metro—traditional sales and previously owned properties only. This is the most reliable snapshot of our market. Condos and townhomes can skew things because of how wide the price ranges are. If you do own a condo or townhouse and want numbers specific to your property, just reach out. I’m happy to put something together for you.

What Happened From April to May?

We actually saw median prices drop slightly—by about $3,000. That might sound surprising, but keep in mind, we’re talking about the median here. The average sale price actually increased a bit. So is this something to worry about? I don’t think so.

Interest rates are still hovering around 7%, which is actually close to the historical average. It only feels high because we got used to those 3–4% rates a few years back. It’s unlikely we’ll see those again anytime soon.

Watch the full video breakdown here

Inventory and Sales Activity

Months supply rose slightly from 1.5 to 1.6 months. That’s typical for this time of year and still lower than what we saw last spring—about 11% lower, in fact.

Days on market dropped from 11 to 10, which is nearly identical to this time last year.

Closed sales are up 1.6% year over year, and pending sales are up 1.9%. New listings, however, are down 2% compared to last year. So, even though buyer activity is strong, we’re still not seeing as many new homes hitting the market.

Local Market vs National Headlines

If you’re reading national news, you’ve probably seen stories about home prices dropping. That’s true—in certain parts of the country. Florida, Texas, and Arizona are seeing some price declines. Those markets exploded during COVID with a huge influx of buyers, and now they’re settling back down.

But here in Minnesota, we’re mostly insulated from that kind of volatility. The Twin Cities market tends to be more stable, more balanced. We don’t experience the same wild swings that coastal or boomtown markets do.

What This Means for You

If you’re thinking of selling, now is a great time. We typically hit peak pricing in June, July, and August, and May listings often benefit from that early momentum. I expect average prices to rise a bit more as we get deeper into summer.

If you’re a buyer, it’s also a promising time. We’re starting to see fewer multiple-offer situations compared to even just a few weeks ago. As inventory builds and the market balances out, you’ve got more room to make thoughtful decisions.

Whether you’re buying or selling, it’s all about finding the right house in the right location with a payment that makes sense for your budget.

If you have questions or want to take a closer look at what’s happening in your specific neighborhood, let me know. I’m happy to break it down with you.

-Joe

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