The Market Pulse

Twin Cities Housing Market Update | July 2026

Every month, new real estate statistics are released—average sales prices, inventory levels, days on market, mortgage rates, and more.

But numbers by themselves don't tell the whole story.

What matters is what those numbers mean for buyers, sellers, and homeowners right here in the Twin Cities. This month, I wanted to look beyond the headlines and share not only what's happening in our local market, but also what I'm seeing inside actual transactions and how those trends may impact your next move.

To provide a more complete picture, I combined the latest Twin Cities housing market data with insights from nearly 200 accepted purchase agreements coordinated throughout the seven-county metro during the month of July. Together, they paint a much clearer picture of today's market than statistics alone.

July at a Glance

Average Sales Price: $471,874 (+2.4%)

📈 Months Supply of Homes: 2.6 Months (+4.0%)

⏳ Average Days on Market: 50 Days (+4.2%)

📋 New Listings: 69,099 (+3.8%)

💰 Average 30-Year Mortgage Rate: 6.83%

Buyers Have More Choices—But Great Homes Still Sell

Months Supply of Homes: 2.6 Months (+4.0%)

One of the biggest changes we've seen over the past year is inventory.

With 2.6 months of housing supply and more new listings entering the market, buyers have more opportunities than they've had in several years. Instead of feeling rushed into making a decision after seeing one or two homes, many buyers are taking more time to compare properties, evaluate neighborhoods, and think carefully about financing before submitting an offer.

That doesn't mean the market has slowed to a standstill.

In fact, transaction data from nearly 200 accepted offers throughout the Twin Cities revealed that the median purchase price was 100% of the list price, while buyers paid an average of 99.2% of asking price.

What does that tell us?

Homes that are thoughtfully prepared, professionally marketed, and strategically priced continue to attract strong interest. Buyers may have more choices today, but they're still willing to pay fair market value for homes that truly stand out.

Negotiations Are Becoming More Balanced

One of the most interesting trends isn't found in public housing reports—it's happening inside the purchase agreements themselves.

Compared to the highly competitive market of just a few years ago, today's buyers have more opportunities to negotiate while still writing competitive offers.

Here's what stood out in July:

• Only 19% of buyers waived their home inspection.

• Just 3% of accepted offers included an escalation clause.

• Only 5% of financed buyers offered appraisal gap coverage.

• 35% of buyers received seller-paid closing costs.

• 12% of accepted offers were contingent upon selling their current home first.

These numbers reflect a market that's becoming healthier and more balanced.

Buyers no longer feel the same pressure to remove every protection simply to compete, while sellers continue to benefit from strong buyer demand when their homes are priced correctly.

For both sides, that's a positive shift.

Mortgage Rates Continue to Shape the Market

One of the biggest factors influencing today's Minnesota real estate market continues to be mortgage rates.

By the end of July, the average 30-year fixed mortgage rate climbed to approximately 6.83%.

According to the Mortgage Bankers Association, mortgage application activity declined during the last week of July as higher borrowing costs affected both purchase and refinance demand. Purchase applications decreased 4% from the previous week, though they remained 3% higher than the same week last year.

Higher mortgage rates continue to impact affordability, but they have also reduced some of the intense competition we experienced over the past several years. Buyers today often have more opportunities to negotiate, complete inspections, and make thoughtful decisions instead of feeling pressured to waive contingencies or submit offers within hours.

As both a Minnesota Realtor and Minnesota Mortgage Loan Originator, I've found that understanding your financing before you begin your home search has become more important than ever. The more prepared you are, the more confidently you'll be able to navigate today's market.

Cash Buyers Continue to Play an Important Role

One statistic that stood out to me this month was the number of cash purchases.

Of the accepted offers reviewed, 23% were cash transactions, while 61% were financed with conventional loans, 9% used FHA financing, and 6% used VA loans.

Cash buyers often have an advantage because they can close more quickly and eliminate financing uncertainty. That said, conventional financing continues to be the most common way buyers purchase homes throughout the Twin Cities real estate market.

For buyers using financing, strong preparation still matters. Having a trusted lender, understanding your budget, and getting fully pre-approved can make your offer much more competitive—even in a market with cash buyers.

What I'm Seeing

One of the things I enjoy most about working in Twin Cities real estate is that no two transactions are exactly alike.

Lately, I've noticed buyers asking more questions than they were a year ago. They're taking time to compare homes, understand financing options, and think carefully before making an offer.

On the seller side, preparation continues to make all the difference.

Homes that are professionally marketed, thoughtfully prepared, and strategically priced are still generating excellent activity. Homes that miss the mark on pricing or presentation often sit longer as buyers become more selective.

Today's market rewards preparation more than pressure.

Josie's Take

One thing I've learned over the years is that headlines rarely tell the whole story.

It's easy to hear that inventory is up or mortgage rates have increased and assume the market has shifted dramatically. But every client, every home, and every situation is different.

That's why I believe understanding the market is important—but having a strategy that's tailored to your goals is even more valuable.

Whether you're buying a home in Minnesota, selling a home in Minneapolis, or simply curious about your options, today's market doesn't favor buyers or sellers.

It favors people with a plan.

Josie Johnson is a Minneapolis Listing Agent, Minnesota Realtor, and Minnesota Mortgage Loan Originator serving clients throughout Minneapolis and the Twin Cities. She believes every successful move starts with a thoughtful strategy, personalized guidance, and a clear understanding of both the real estate market and financing options. Whether you're buying, selling, investing, or simply exploring your options, Josie is passionate about helping clients make confident decisions that support their long-term goals.