Twin Cities real estate market outlook for 2026

This is Dustin's outlook, not a guarantee. Markets change, so ask for current numbers for your neighborhood.

Prices

Expect modest growth: slower than the 2021–2022 run-up, but still positive, with many suburbs outpacing the urban core.

Inventory

More homes tend to list in spring, but inventory is still below pre-pandemic levels. Buyers face competition, though usually less intense than in recent years.

Interest rates

Rates have settled well above the 2020–21 lows. Focus on the right home and long-term value instead of trying to time rates. You can refinance later if they drop. See the market recap →

Opportunities

Buyers: more negotiating room than in the frenzy years, and more time to decide. Sellers: spring (March–June) is still prime time, and well-priced homes sell quickly.

By county

• Hennepin: steady prices, moderate inventory
• Ramsey: St. Paul continues to offer value, a first-time buyer favorite
• Anoka: an affordability leader with strong schools
• Dakota: suburban appeal and new construction

What this means for you

Sellers: price right from day one, present the home well, and keep more with a 2% listing fee. Buyers: get pre-approved and be ready to move on the right home.

Talk strategy with Dustin