Is now a good time to buy a house in Minneapolis/St. Paul?

Absolutely—2025 is one of the better windows we’ve seen in the Twin Cities since 2021. After two years of painfully low inventory, active listings are up roughly 18–22% year-over-year (per Minneapolis Area REALTORS® and St. Paul Area Association of REALTORS® data through fall 2025). That means you’re no longer guaranteed to write 10 offers before winning one.

Mortgage rates have stabilized in the 5.5–6.25% range for buyers with strong credit, and many economists expect only modest declines in 2026. Waiting for “lower rates” could trigger another rush of sidelined buyers, pushing prices higher again. The median sale price is hovering around $385,000–$395,000 metro-wide—still below the national average when adjusted for income. The market feels balanced rather than frenzied. Homes are taking 30–50 days to sell (vs. 7–14 days in 2022), giving you time for inspections and due diligence. Multiple offers still happen in move-in-ready homes under $450K in Edina, Linden Hills, or Highland Park, but escalation clauses and waived inspections are far less common. If you’re planning to stay 5–7+ years, buying now locks in today’s prices and lets you refinance later if rates drop another half-point. First-time buyer programs through Minnesota Housing are still offering down-payment assistance up to $17,000–$19,000, and some lenders are bringing back 3% down conventional loans. Bottom line: 2025 rewards prepared, patient buyers instead of the frantic bidding wars of the past.