State and Metro Home Prices Set New Record in June Amid Rising Activity

According to new data from the Minnesota state and Twin Cities metro REALTOR^® Associations, new listings, sales, inventory and prices all rose again in June.

Sellers, Buyers and Housing Supply

With half of 2025 in the books, year-to-date numbers can offer a clear view of market activity relative to last year. So far, statewide new listings are up 6.0% while pending sales are up 1.1%. In the metro, seller activity is 4.4% higher while buyer activity is up 0.8%. The fact that listings are up more than sales has pushed inventory levels higher for 23 consecutive months statewide and 20 straight months metro wide. Despite those supply gains, however, both the state and metro remain sellers’ markets with between 2.5 and 3.0 months of supply. Traditionally, 5-6 months of supply is considered balanced.

At about 6.82% on average, mortgage rates were flat from May to June but are down about 10 basis points from last June. “A better inventory picture plus slightly better mortgage rates have been encouraging,” said Patti Jo Fitzpatrick, President of Minnesota Realtors^®. “But affordability concerns haven’t gone away—particularly for first time buyers looking to break into the market. Realtors® can help buyers on a budget get into their first home. Meanwhile, many sellers are finding success getting their desired price.”

In June, pending sales rose 3.7% statewide and 3.5% in the metro. Single family pending sales rose 5.0% while condo sales fell around 1.5% across the NorthstarMLS coverage area (about 96% of statewide activity). That same region had a 5.5% increase in existing home sales while new home sales were flat. Sales under $500K were up 1.2%; sales between $500K-1M rose 18.0%; sales over $1M increased 12.0%. Luxury buyers are less sensitive to interest rates than other buyers and move-up buyers have plenty of equity to roll into the next home. “We’ve always said the housing market has to be looked at situationally,” said Frank D’Angelo, President of Minneapolis Area REALTORS®. “Not only are there huge differences across market segments and price points, but every neighborhood and home is unique. Realtors® offer the knowledge, insights and tools needed to ensure a successful transaction.”

Prices, Market Times and Negotiations

The statewide median home price rose 4.2% to a record high of $370,000. The Twin Cities price rose 2.8% to $401,000—both a record high and the metro’s first time over $400,000. But single-family homes average $449,000 in the metro and $395,000 statewide. Newly built homes sell for about $522,500 in the metro and $495,000 statewide. Homes took 39 days to go under contract in the metro and 35 days statewide (the statewide figure only includes the most recent listing period while the metro figure uses cumulative days on market for all recent listing periods). Metro-wide, single-family homes took 34 days to sell, townhomes 46 days and condos took the longest to sell at 90 days. New builds in the metro took 87 days while existing homes took 34 days to go under contract.

Across the state, sellers accepted offers at 99.3% of their original list price compared to 100% in the metro. Here again, metro single family units fetched 100.7%; townhomes got 98.8%; condo sellers settled on 95.2% of their asking price. Newly built homes got 98.7% of list price but existing properties saw offers at 100.1%. Single-family and existing homes continue to be the hottest segments. “While there’s still demand for townhomes and condos, those who qualify in today’s market are often looking for single-family homes,” said Jennifer Livingston, President of the Saint Paul Area Association of REALTORS^®. “But the truth is some of the other property types and locations can offer the best value—especially for first time buyers.”

Locational Differences | Minnesota Statewide

Market activity always varies by area, price point and segment. Regions such as Fergus Falls, Detroit Lakes, and Hibbing/Virgina saw the largest gains in seller activity. Bemidji, Alexandria and Detroit Lakes had the largest gains in pending sales. Homes sold the fastest in the metro, Duluth/North Shore and Rochester regions. Prices were highest in the metro, followed by Detroit Lakes, Rochester and Fergus Falls. The most affordable regions of the state were Hibbing/Virginia, Willmar and Bemidji. Every region is undersupplied or balanced except Bemidji and Detroit Lakes.

Locational Differences | Twin Cities Metro

For cities with at least five sales, Excelsior, Newport and Falcon Heights had the largest sales gains. The highest priced areas were Medina, Orono, Wayzata, North Oaks and Deephaven. The most affordable areas were Columbia Heights, Brooklyn Center, South St. Paul and Red Wing. Homes took the longest to sell in

Lindstrom, Independence and North Branch but sold the fastest in Falcon Heights, Watertown and Robbinsdale. Wayzata and Ham Lake were the only notable oversupplied. The most undersupplied markets were St. Bonifacius, Fridley, Falcon Heights and Richfield.