Hot take: nobody actually knows what the housing market is doing…until they ask someone who does. If you've been doom-scrolling real estate headlines, trying to figure out whether 2026 is the year to buy, sell, or just stay put and adopt more houseplants, you aren’t the only one.

So let's cut through the noise. The 2026 Minneapolis market is actually pretty great, for both buyers AND sellers, once you understand what's going on. We’ll explain.

First, a Quick Refresher: Buyer's Market? Seller's Market? What Does That Even Mean?

A seller's market means there aren't enough homes for all the buyers who want them, so sellers have the upper hand. Prices go up, homes sell fast, and buyers often have to compete. A buyer's market is the opposite: lots of homes available, not enough buyers, and sellers have to work harder to close a deal. A balanced market sits in the middle - both sides have real negotiating power, and neither has a huge advantage.

Real estate pros measure which market we're in by tracking three things: inventory (how many homes are for sale), days on market (how long a home sits before someone buys it), and the sale-to-list price ratio (whether homes sell for more or less than asking price). These three numbers tell a pretty clear story.

So… What's the Story in Minneapolis Right Now?

Minneapolis has officially entered what experts are calling a "balanced market" heading into 2026. That means the playing field is more level than it's been in years, which is genuinely good news for just about everyone.

Here's what the numbers look like: the median home price in Minneapolis is hovering around $315,000, and homes are spending about 42 days on the market on average, down from 56 days this time last year. Buyers are clearly still out there and actively looking. Meanwhile, inventory is up roughly 18% compared to recent years, meaning there are more homes to choose from. More options for buyers, but still enough demand to keep sellers in a strong position.

Here's the number that might surprise you: the sale-to-list price ratio is sitting at about 99.6%. That means most sellers are getting almost exactly what they're asking. The era of bidding wars pushing prices 10–20% over asking is largely behind us, but sellers are absolutely not losing ground either.

Good News, Buyers - You Have More Options Than You Did

The frantic pace of the last few years has calmed down considerably. With more homes on the market and listings taking a bit longer to sell, you have time to do your research, get a proper inspection, and make a thoughtful decision rather than a rushed one.

That said, don't assume every home is a slow mover. Well-priced homes in popular neighborhoods like South Minneapolis, Edina, and Minnetonka are still drawing multiple offers. Come prepared: get pre-approved, know your priorities, and work with an agent who knows the local market well.

Sellers, You're Still in a Good Spot

Homes are still selling close to the asking price, and there are motivated buyers out there. It seems like the days of minimal prep and instant offers are mostly behind us, and pricing and presentation matter a lot more than they used to.

If your price is off, buyers, who now have more time and more choices, will simply move on. A listing that sits too long starts to raise questions, even when there's nothing actually wrong with the home. Homes that are priced accurately and show well are still selling. The market rewards preparation.

The good news is that a little effort really does pay off. Fresh staging, a coat of paint, or a few small updates can noticeably improve how quickly your home sells and at what price. And working with an agent who can build a pricing strategy based on your specific neighborhood, not just city-wide trends, makes a real difference right now.

Okay, But What About Those Mortgage Rates?

Rates are still a sore subject after the historic lows of the early 2020s. The 6–7% range we're seeing today is a real adjustment, especially if you locked in something much lower a few years ago. However, rates have stabilized, buyers are adapting, and even small dips have been enough to pull new buyers back into the market.

One thing worth knowing: seller-paid mortgage rate buydowns are becoming more common. The seller essentially pays to reduce your interest rate for the first few years of the loan, which can meaningfully lower your monthly payment. It's a creative tool that's gaining traction - ask your agent whether it makes sense in your situation.

What It All Means

Minneapolis in 2026 is a market where both buyers and sellers can do well if they come in informed and prepared. Buyers have more choices and more leverage than they've had in years. Sellers can still get strong value for their homes if they price and present them thoughtfully.

What matters most is understanding your specific neighborhood. City-wide averages only tell part of the story.

At Fox Realty, we know the Minneapolis market inside and out, and we're here to give you a straight, honest picture of what's happening in your corner of the city. Whether you're ready to move or just starting to explore, we'd love to talk. Reach out to Fox Realty today.