Sellers were once again more active than buyers in November, which has been a theme throughout most of the year and has enabled some inventory growth. Sellers with built-up equity are rolling it into the next property, while first-time buyers are struggling to break into the market. The increase in new listings came from the existing single-family segment as townhomes, condos and new construction were all down compared to last year. But buyer activity shifted in November. Single-family sales were down 0.6% while condo sales were up nearly 16.0% statewide—perhaps reflecting better affordability in the condo segment. “Today’s home buyers are looking for both a home and a monthly payment that meet their needs,” said Patti Jo Fitzpatrick, President of Minnesota Realtors®. “We’re seeing buyers explore a wider range of neighborhoods, styles, and property types than they would have considered a few years ago. Meanwhile, multiple offer scenarios have become less common, but most sellers are still achieving their asking price.”
“Prospective home buyers are hopeful but realistic heading into 2026,” according to Frank D’Angelo, President of Minneapolis Area REALTORS®. “They understand inventory remains tight and, even at one-year lows, mortgage rates still feel elevated.” With rates remaining near those one-year lows, the second consecutive month of softening demand likely reflects broader economic pressures—including a slowing labor market, rising inflation, and consumer confidence at Great Recession levels, on top of student loan payments and higher insurance costs.
Despite our challenges, a recent Realtor.com study out this month included the Twin Cities as one of the top 10 hot spots for housing in 2026. Several factors were cited as part of the analysis, including a better balance between local incomes and home prices, some room to grow, favorable demographics and an expanding local economy. The study also mentioned a high number of households sitting right on the edge of affordability—meaning a slight decline in interest rates could enable more households to achieve homeownership compared to other regions. The average 30-year mortgage rate stayed around 6.25% compared to 6.8% last November. If the economy can remain resilient and inflation cools, better affordability will bring some discouraged buyers off the bench and onto the dance floor.
And they’ll mostly find more choices during their search. Inventory levels rose 1.5% statewide but fell 1.7% in the metro last month but are up 8.9% and 6.0% respectively year over year. With 2.7 and 2.4 months of supply in the state and metro, both technically remain sellers’ markets but they’re the most balanced they’ve been in about five years. Roughly five to six months of supply is considered a balanced market.