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Market insider- Twin Cities real estate update December 2025
I don’t typically do updates, but I’ve had several people reach out to me asking for some. I’m going to give it a go here this month and if it’s something that you enjoy and want me to continue, your feedback will be very helpful.
There are several different changes that I’ve seen in the market over the last month that I think are worth highlighting-
- Buyers waving home inspections is down 6% from 33% this is a wonderful thing that’s happening as far as I’m concerned. I don’t care if I’m a listing agent or a buyer’s agent, I want to see every single transaction have a home inspection period I think that not only does it make everyone on both sides of the transaction feel comfortable that the house is what it is, it also cuts down on problems after the closing.
- Purchase agreements with contingent upon the sale of the buyer’s property is up to 22% from 8% in a very short period of time. That means as the market time for homes listed for sale increase, the buyers need to have that loophole to get out should their home not sell.
- Cash purchases are down to 17% from 25% in previous months. This is great news for first time home buyers especially that have a smaller down payments period now they don’t have to compete with as many cash offers.
- Buyers are not asking for as many home warranties to be paid for by the seller it’s down to 3% from 4%.
- This is the one that surprised me the most. Buyers are coming in and asking for seller paid closing costs which has jumped from 25% of the transaction to 39%. That is a huge jump and something that the sellers need to be aware of. You may have to factor in this extra cost when selling your home in this particular market.
- Barely any appraisal gap coverage terminology in these purchase agreements. This is another great step forward for balancing out the real estate market. This has been a problem for quite some time because there are some home buyers that don’t have the ability to add this clause to a purchase agreement.
- Average days on market went from 19 to 37 although I would think it’s actually closer to 75. It really depends on the price point and the location to determine that.
- Average purchase to list price is hanging at 97% meaning that the majority of the homes that are selling are selling for 97% of the listed value. This also helps you navigate what your bottom line will be as you’re thinking about selling your home.
- Reported multiple offers have dropped from 13% to 11%. This stands to reason considering that we have longer market times period we’re still seeing multiple offers in certain properties in certain areas and price points. But the vast majority of the homes that are listed in all areas and price ranges are not selling multiple offers. Again giving buyers a chance to reflect and think about the home they’re going to purchase.
All of this is very interesting and good news for everybody involved although I’m sure some people won’t necessarily see it that way. I just feel that it’s important to keep all of my clients and followers updated on all this information. Let’s face it if you own a home, it’s probably the largest investment you will ever make in your lifetime. It’s important that you stay on top of the changes and are aware of how this can impact your home.
