Twin Cities metro sees more real estate activity but drop in home prices

Twin Cities real estate: Latest trends

The Twin Cities housing market has been on a hot streak with some homes seeing bidding wars above the asking price, but it could be showing signs of slowing down. FOX 9’s Soyoung Kim spoke with area realtors and breaks down the latest numbers.

(FOX 9) - The Twin Cities housing market has been on a bit of a hot streak with some homes seeing bidding wars above the asking price.

Now, it is showing signs of slowing down heading into the heart of the spring selling season, according to the April 2026 Housing Market Report from Minnesota Realtors.

Softer prices require patience

What we know:

According to the latest monthly housing report, Twin Cities metro home prices saw the sharpest decline in more than a decade.

Experts at Minneapolis Area Realtors walked FOX 9 through how we got here and what this price drop in the metro area indicates.

"It’s the softest it’s been in 14 years, which would put us at 2012, which is right after the economic downturn. So, we did see quite a bit of growth during COVID and I think now what’s happening is that we are getting to a more balanced return after COVID," said Aarica Coleman, 2026 President of Minneapolis Area Realtors.

What they're saying:

Metro area realtors say having patience in the marketplace at this time is key, but a drop in prices can also be viewed as an opportunity.

"Move-up buyers and downsizers with equity continue to drive this market," said Coleman. "Slowing price growth may open up some possibilities for first-time buyers, but affordability hinges so much on rates. Homeownership continues to be most accessible to people who already have some capital."

"Any sustained improvement in mortgage rates—combined with these inventory gains—would truly help open the door for first-time buyers. Sellers should benefit from pricing their properties realistically. Rates, renewed inflation, and broader economic conditions have a market impact alongside underlying fundamentals like supply and demand," said Wendy Uzelac, 2026 president of Minnesota Realtors.

By the numbers:

The new data shows home sales in the metro in April were down more than 3% compared to last April with 3,800 house closings.

The median price in the Twin Cites also dropped by 2% for the first time in years to $392,000.

Across the state, homes also sat on the market longer compared with last year.

In the metro, houses sold in an average of 57 days.

Real estate professionals point to some bright spots in the latest report, statewide including the Twin Cities, they saw an increase in new listings and signed purchase agreements.

The president of Minnesota Realtors says the data just provides a monthly snapshot of the marketplace, but there’s many factors that impact each situation even within the same area.

"They need to understand the nuances of our current market. There are different factors that affect segments of the market broken down by price, broken down by property type," said Uzelac.

Why you should care:

Experts say they do not consider some of these dips a trend at this time, but rather view it as the market trying to stabilize during a time when there are concerns and uncertainty around affordability.