As we move into 2026, the Twin Cities real estate market continues to show resilience. Here's what experts are predicting for the year ahead.
Price Trends
Modest Growth Expected
- Median home prices projected to increase 3-5%
- Slower growth than 2023-2024, but still positive
- Suburban markets outpacing urban areas
Inventory Levels
Gradual Improvement
- More homes expected to hit the market in spring
- Still below pre-pandemic levels
- Buyer competition remains, but less intense than 2023
Interest Rates
Stabilization at Current Levels
- Rates hovering around 6.5%
- Unlikely to drop below 6% this year
- Focus on long-term value over rate timing
Best Opportunities
For Buyers:
- Emerging neighborhoods: Columbia Heights, Robbinsdale, Maplewood
- Increased negotiating power compared to 2023
- More time to make decisions without multiple offers
For Sellers:
- Spring market (March-June) still the best time
- Well-priced homes still selling quickly
- Buyers have more financing options
Market by County
Hennepin County
- Stable prices, moderate inventory
- Minneapolis seeing condo growth
Ramsey County
- St. Paul continues to offer value
- First-time buyer hotspot
Anoka County
- Affordability leader
- Strong school districts driving demand
Dakota County
- Suburban appeal
- New construction opportunities
What This Means for You
If You're Selling:
- Price competitively from day one
- Quality presentation matters more than ever
- Consider our low 2% listing fee to maximize proceeds
If You're Buying:
- Don't wait for rates to drop
- Focus on finding the right home
- Take advantage of less competition
Looking Ahead
The Twin Cities market remains strong with balanced conditions expected. Neither buyers nor sellers have a dramatic advantage, making it a fair market for both sides.
Ready to make your move in 2026? Contact Prime Location Realty Group for personalized market insights and strategy.