Why Twin Cities Homes Are Taking Longer to Sell in 2026 (And What It Means for Buyers and Sellers)

Why Twin Cities Homes Are Taking Longer to Sell in 2026

If you have been watching the Minneapolis and St. Paul housing market this spring, you may have noticed something. Homes are not flying off the shelf quite like they did a year ago. That is not a sign of trouble. It is a sign of a market that is finding a healthier balance, and it creates real opportunities depending on which side of the deal you are on.

Let me walk you through what is actually happening and what it means for you, whether you are buying, selling, or just keeping an eye on your largest asset.

What Is Happening in the Twin Cities Market Right Now?

The short version: prices are steady, inventory is up, and homes are taking longer to sell.

The metro-wide median sale price has held right around $380,000. That stability matters. It tells us the market is not crashing and it is not overheating. It is leveling.

At the same time, the number of homes for sale has climbed noticeably. Active listings across the region were up roughly 16 percent compared to last year, one of the larger increases among major U.S. markets. More homes on the market means more choices for buyers.

The biggest shift is time. The typical Twin Cities home now takes about 70 days to sell, up from around 42 days a year ago. Buyers are being more deliberate, and that is changing the pace of the whole market.

Is This a Buyer's Market or a Seller's Market?

It is leaning toward balanced, with advantages for both sides.

For buyers, the math is encouraging. You have more homes to choose from, more time to make a decision, and more room to negotiate than buyers had during the frenzied years. You are far less likely to feel rushed into waiving inspections or writing offers tens of thousands over asking.

For sellers, the picture is still strong. Nearly 98 percent of sellers are getting at or very close to their asking price. The key is realistic pricing and good presentation. A home that is priced right and shows well still sells. A home that is overpriced will simply sit while better-priced homes around it move.

What About the South Metro and Lakeville?

The south metro continues to be one of the most desirable areas in the region. In Lakeville, the local median has been sitting in the mid $500,000s, reflecting strong demand for newer construction and family-friendly neighborhoods.

The luxury segment is especially active. Sales above $1 million were up more than 20 percent last month across the metro, making high-end homes one of the hottest categories right now. From updated estates on acreage to lakefront properties, move-up and second-home buyers are staying busy.

Where Are Mortgage Rates Heading?

This is the question I get most, so let me keep it simple.

Rates moved up modestly over the past week. Based on the daily tracking at Mortgage News Daily, the 30-year fixed has been hovering in the mid-to-high 6 percent range. The recent nudge higher came after May inflation ran warmer than expected and markets dialed back their hopes for a near-term Federal Reserve rate cut.

Looking ahead, major forecasters including Fannie Mae and the Mortgage Bankers Association expect rates to stay in the mid 6 percent range through the rest of the year. I want to be clear that these are general market observations, not a quote or a promise. Your actual options depend on your credit, your down payment, the property, and the loan program that fits you.

Here is the practical takeaway. Waiting for a perfect rate is a gamble. Knowing your own numbers is a strategy. When you understand your budget and have a real pre-approval in hand, you can move quickly and confidently when the right home appears, whatever rates are doing that week.

What Should Buyers Do in This Market?

A few simple moves put you in a strong position:

•       Get pre-approved early so you know your true budget and can act fast.

•       Use the extra time on the market to tour thoroughly and ask questions.

•       Lean on the negotiating room that slower sales create.

•       Build in a plan for the future, including whether a refinance might make sense down the road if rates ease.

What Should Sellers Do in This Market?

If you are selling, focus on the two things you control:

•       Price it right from day one. The homes that sit are almost always the ones that started too high.

•       Show it well. Clean, decluttered, and well-photographed homes still attract strong offers.

Pricing strategy is where a lot of the value comes from, and it helps to talk it through with someone who watches these numbers every week.

Let's Build a Plan Around Your Goals

Markets like this one reward preparation. Whether you are a move-up buyer ready to make your next move, a veteran using your VA benefit, a family eyeing a cabin up north, or a homeowner wondering if now is the time, I am here to give you clear answers without any pressure.

Reach out for a free Total Cost Analysis, and let's build a plan around what you actually want to accomplish this year.

Chad Krueger, Mortgage Loan Officer

MinnTrust Mortgage LLC, NMLS #400930

Phone: 612-382-8792

Email: Chad@MinnTrust.com

Website: www.chadkrueger.com

All loans subject to approval. Equal Housing Lender. All rates and market figures are general and directional, sourced from public market reporting including the St. Paul and Minneapolis Area Association of Realtors and Mortgage News Daily.