🔺 Trend #1: Interest Rates Leveling Off
- 2024 saw peak rates, but 2025 is showing slight declines.
- Expect 6.25–6.75% averages for 30-year fixed mortgages.
- What this means: More buyers are returning to the market.
📉 Trend #2: Inventory Is Slowly Rising
- More homeowners are listing now that rates are stable.
- New construction is up 12% YoY in the Twin Cities.
- Impact: Buyers have more options, sellers need to price competitively.
🏠 Trend #3: Suburban & Exurban Growth
- Areas like Woodbury, Blaine, and Savage are booming.
- Remote work continues to fuel demand in less urban parts of MN.
- Takeaway: Space and affordability are driving relocation patterns.
💸 Trend #4: Home Prices Are Holding—But Not Skyrocketing
- Median home prices are rising modestly (~4% YoY).
- Hot neighborhoods still see bidding wars, but it’s not 2021 anymore.
- Good news: It’s a balanced market, better for both sides.
Final Thought:
2025 is shaping up to be a more stable and opportunity-rich year for Minnesota real estate. Whether you’re buying, selling, or investing, knowledge of these trends is your edge. Let’s connect if you want personalized insights for your goals.