May 2025 Housing Market Recap – What the Numbers Mean for Minneapolis Buyers & Sellers

Posted by UrbanMinneapolisHomes.com

Source: Minnesota Realtors®

Market Snapshot for May 2025

This spring’s market dynamics continue to evolve in Minnesota. Whether you’re planning to buy or sell in Minneapolis, the latest data from the Minnesota Association of REALTORS® offers key insights.

• Median Sales Price: $359,900 – a 2.8% increase year-over-year [oai_citation:0‡mnrealtor.com](https://www.mnrealtor.com/blogs/mnr-news1/2025/06/16/may-2025-housing-report?utm_source=chatgpt.com)
• Days on Market: Homes are selling in just 37 days on average – 10.1% faster than last year
• Active Listings: Inventory is up 10.1% compared to May 2024
• Closed Sales: Down slightly by 0.4% year-over-year

Market Activity & Affordability

• Seller Activity: Statewide seller activity rose 5.3% in May (metro up 0.6%) and remains ahead year-to-date (6.3% statewide, 5.0% metro)
• Pending Sales: Up 1.7% statewide and 0.5% in metro area
• Monthly Mortgage Payment: Averaging $2,637—approximately $1,000 higher than in 2021

Though mortgage rates dipped slightly in May, they’re still relatively high—affecting buyer budgets and influencing affordability.

What This Means for You

For Sellers:

• Price gains and quick sales continue—if your home is market-ready, now is a strong time to list.
• Increased inventory means competition—strategic pricing and staging are crucial.

For Buyers:

• More homes on market means more choice—but with mortgage costs elevated, budget carefully.
• Getting pre-approved and ready to move quickly can give you an edge.

Twin Cities Neighborhood Insight

Within Minneapolis and its surrounding suburbs, the trends reflect the statewide picture. Properly priced homes in desirable neighborhoods like East Isles, Fulton, and Northeast Minneapolis are still moving fast. Curious about your area or want help pinpointing where opportunities exist? Contact me here.

Ready to Talk Strategy?

Whether you're planning to buy your first home or sell in this dynamic market, I bring deep local insight and a data-driven approach to guide your next move. Let’s connect and craft your winning strategy.

— UrbanMinneapolisHomes.com