2026 Housing Market Trends for Buyers and Sellers in the Twin Cities

As of late February 2026, many buyers and sellers across the Minneapolis–Saint Paul metro area are wondering what’s really happening in the housing market. After a cold and snowy January, activity slowed slightly, and many people are concerned about low inventory.

While there may be fewer choices in some price ranges, there are still homes available. The market is active — it just requires the right strategy.

Interest Rates Are Starting to Stabilize

Recently, I spoke with David Lozinski at First Equity Mortgage, who shared that refinance activity has been increasing. He mentioned rates around 5.75% for a 30-year mortgage, depending on credit score, income, and overall financial profile.

This is a noticeable improvement compared to rates near 8% just

a couple of years ago.

No one can predict exactly where rates will go next. They may stay steady, drop slightly, or change again. For buyers, the most important thing is understanding what today’s rates mean for your monthly payment and whether buying now makes sense for your situation.

What Buyers Should Know in 2026

If you’re thinking about buying a home in the Twin Cities, focus on:

Your budget and monthly payment
Your long-term plans
Available inventory in your price range
Your financing options

With the right preparation and guidance, buyers are still finding great opportunities in today’s market.

What Sellers Should Know in 2026

For homeowners considering selling, there is good news: buyers are actively looking.

However, today’s buyers are more selective. Homes that are clean, well-maintained, and move-in ready tend to attract more interest.

This does not mean you need to spend $50,000 on upgrades.

It means:

Take care of basic maintenance
Make simple cosmetic improvements if needed
Price your home correctly for the current market

Proper pricing and presentation matter more than ever.

Is Now the Right Time for You?

Every buyer and seller has different goals, timelines, and financial needs. The best decision is always based on your personal situation — not just headlines.

If you’d like a clear picture of what the market means for you, I’m happy to help.

Text MSP to 952-994-7204
for a personalized home value and market strategy.