Minnesota Real Estate Market Update: August 2025 – Trends Every Twin Cities Buyer & Seller Should Know

Minnesota Real Estate Market Update – August 2025

If you have been following the Minnesota housing market, you know that conditions can change quickly. Whether you are planning to buy, sell, or simply want to stay informed, here is the latest on what is happening in the Twin Cities real estate market right now.

Home Prices Holding Strong

Home prices in the Twin Cities metro reached a record median of $401,000 in June 2025. Minneapolis recorded a median sold price of $356,000, while St. Paul came in at $325,000. These figures show steady demand, especially in popular areas like Edina, Plymouth, and Bloomington.

• Twin Cities median home price: $401,000

• Minneapolis median price: $356,000

• St. Paul median price: $325,000

Inventory on the Rise

Housing inventory in the metro area is beginning to climb compared to recent years. Buyers are starting to see more options, and while sellers still hold an advantage, the days of intense bidding wars are less frequent.

• More listings mean more choices for buyers

• Sellers benefit from competitive but realistic pricing strategies

Interest Rates in 2025

Mortgage rates are trending downward, offering a small but welcome boost to affordability. The average 30-year fixed mortgage rate stood at 6.63% on August 7, 2025, and has since dropped to 6.58% as of August 11, marking the lowest level in ten months.

What This Means for Buyers

With rates dipping and more homes available, now is a strategic time to start your search. Acting before rates shift upward again could save thousands over the life of a loan.
Tip: Secure a mortgage pre-approval before viewing homes to strengthen your offer.

What This Means for Sellers

Sellers can still achieve strong results in today’s market. Staging your property, setting the right price, and investing in high-quality marketing are key to attracting qualified buyers.

Thinking About Your Next Move?

Whether you are ready to buy, planning to sell, or curious about your home’s current value, I can provide the insights and tools you need to make confident decisions. Request a free, no-obligation home valuation today.

Call/Text Brandon Lawrence – Keller Williams Edina
952-737-8128 | b.lawrence@kw.com
Get Your Free Home Valuation