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May 2026 Housing Report

By MNR News posted an hour ago

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Spring Market Late But Strong as Sales and Inventory Climb
Key Updates: Both buyer and seller activity rose in May, according to new data from the Minnesota state and Twin Cities metro REALTOR® Associations.

New listings rose 4.5% statewide and 4.3% in the Twin Cities.
Pending sales increased 6.8% statewide and 10.6% in the metro.
The median sales price was up 0.7% statewide and 1.0% in the metro.

Market activity improving across several key metrics

Statewide closed sales rose 2.8%, the strongest gain so far this year. Closed sales are a lagging indicator for activity that’s already occurred. Excluding April, the leading indicator for buyer action—pending sales or signed contracts—increased the most since September of 2025. These figures build on last month’s momentum. It seems the spring market was delayed but not cancelled.

On the seller side, new listings rose 4.5% to the highest level for any month of any year since June 2022. Inventory levels snuck up 6.0%, marking 34 straight months of inventory growth. But it’s also true that inventory levels, statewide, remain well below what’s needed for a healthy, balanced marketplace. Nevertheless, buyers should take note: more homes are available. And if rates ease slightly, strong pent-up demand could be unleashed quickly.

“The spring market is finally showing some momentum, but affordability remains a constraint for home buyers,” said Wendy Uzelac, President of Minnesota Realtors®. “More inventory helps, but it’s only part of the equation. Closing the affordability gap can unlock the market's full potential.” Rising and multi-year high inflation also impacts consumer finances, mortgage rates, and sales.

Significant differences between market segments across state:

Pending sales under $300K were down 4.6% while sales over $1M increased 31.5%

Single-family home sales rose 9.0%; condo sales were up 3.0%; townhome sales increased 6.4%

Previously owned home sales were 8.1% higher while new construction home sales rallied 17.1%

Three-bedroom home sales rose 5.5% while four-bedroom home sales were up 12.3%

Non-waterfront home sales increased 7.8% and private waterfront home sales rose 14.5%

Sales were up 16.8% in Minneapolis and up 10.1% in St. Paul

Sellers more patient and flexible amid rising market times and mixed-price movement

The median home price rose 0.7% statewide and 1.0% in the metro—both relatively soft gains after a decline earlier this year. A median-priced home across the state runs about $362,500, but in the Twin Cities, it’s just shy of $400,000. "We're seeing stubborn mortgage rates, growing inventory, and generally softer demand relieve pressure on home prices," said Aarica Coleman, President of Minneapolis Area REALTORS®. "In this rebalancing market, sellers need a more competitive pricing strategy."

For example, listings spent over 10.0% more time on the market statewide and 2.3% more on the metro in May. And sellers accepted 98.9% and 99.7% of their list price, respectively—both slightly less than last year. The metro figure was 99.3% versus 98.7% last year. These are still healthy numbers historically but represent a departure from the frenzied conditions of 2020–2022, when buyers routinely paid over asking price within days of listing.

As shown above, not all market segments behave the same. “Today’s market rewards preparation and realistic pricing,” said Danielle Bickham Pelton, President of the Saint Paul Area Association of REALTORS®. “Despite the cooler landscape, listings priced right and in good condition are still selling fairly quickly.”

Economy and rates impacting real estate

The economy has been sending some mixed signals lately. Economic headwinds—including rising inflation, sluggish wage growth, and declining savings rates—are tempering consumer confidence, even as recovering job growth, retail spending and corporate earnings offer encouraging signs. Friendlier interest rates would greatly help improve conditions and affordability. It’s really the 10-year treasury that drives the 30-year mortgage rate, so any movement in the bond market ripples into mortgages. The Federal Reserve is still in a difficult place, but most expect them to hold rates flat this month. All real estate remains local and dependent on local jobs, incomes, and housing supply. Despite some uncertainty, homeownership remains an important aspiration for most Minnesotans.

For more information on weekly and monthly housing numbers visit www.mnrealtor.com, www.mplsrealtor.com or www.spaar.com.

May 2026 Mapped | Exploring Spatial Market Trends

(Click on button to view desired map!)

All information is according to Minnesota Realtors® based on data from NorthstarMLS and participating MLSs.
Data are deemed reliable but not guaranteed. MNR serves the entire state of Minnesota.
MAR and SPAAR serve the Twin Cities metro and western Wisconsin.

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