10/30/2026
September 2026 Housing Market Report.
Higher rates cool Minnesota sales as buyers gain leverage.
Minnesota’s housing market lost momentum in September as mortgage rates pushed past 7% for the first time since January 2025, reaching their highest level since late 2023.
Statewide, pending sales experienced the steepest monthly drop of 2026. Sellers kept coming, though, with new listings rising year-over-year.
Statewide inventory climbed to 21,090 homes, a seven-year high, and months of supply rose to 3.7. That’s still below what’s typically seen in a balanced market, but the direction is clear: inventory is growing.
Higher rates have made some buyers hit pause, and we shouldn’t sugarcoat that. But buyers who are ready to move have more choices than they’ve had in years. That means more options, including more room to negotiate and more room to request repairs or concessions.
—Wendy Uzelac, Minnesota Realtors® President
