Home prices softened statewide and were flat in the metro. The statewide median sales price dipped 1.5% to $339,900 while the metro median price held steady at $380,000. Several factors drove the decline. Sellers are becoming more realistic with their pricing strategies as affordability challenges persist. A home listed at $405,000 last year, for example, might be priced closer to $399,000 today.
That shift reflects both sellers adjusting and buyers showing less willingness to make aggressive offers. Sellers are also accepting a smaller share of their original asking price to meet buyers where they are. Realtor.com data shows the state of Minnesota had the highest number of listings with a price reduction since at least 2016. There was also a shift in the product mix. Sales under $300,000 declined less than other price points, meaning they made up a greater share of overall activity. And rising inventory combined with fewer sales meant less competition and fewer multiple offer situations. Overall, prices are recalibrating to today’s market conditions.
“Prospective buyers can be encouraged by a small dip in prices as it reflects a return to historical pricing trends after years of above-average growth and can present new opportunities,” said Danielle Bickham Pelton, President of the Saint Paul Area Association of REALTORS®. It’s important to note that monthly home prices reflect the mix or cross-section of properties that happen to close during the month. A decline in sales prices does not mean all homes are worth less. Higher sales for luxury or newly built homes can skew prices up, while greater sales for smaller homes or condos can skew prices. In February, affordable existing home sales fell less than pricier new builds. And more affordable condos fell less than higher priced single-family homes. This meant lower-priced homes made up a larger share of activity, pressuring median prices lower.
On average, sellers accepted offers at 96.4% of list price statewide and 97.4% in the metro—both down slightly from last year. Offers were accepted after an average of 74* days on market statewide and 69 days in the metro—both flat or down slightly from a year ago.
“We saw a challenging start to the year, and affordability remains a real concern for many households," said Aarica Coleman, President of Minneapolis Area REALTORS®. “In this environment, sellers who price their homes strategically and work closely with an experienced professional will be better positioned to navigate the market and reach the right buyer.”
The latest jobs data show a continued slowdown in hiring activity—in fact the economy lost jobs in five of the last nine months. While recent inflation numbers have been in-line with expectations, conflict in the Middle East is driving energy prices higher and blanket tariffs are also inflationary. This could affect the path of the Fed, treasuries and ultimately mortgage rates. But housing markets are highly local and the is stronger than the nation’s. Our incomes are above average while our home prices are below average. Our homeownership rates consistently rank near the top, especially for younger people. After a challenging start to 2026, the promise of a stronger spring and summer market persists.