A Look at the Local Market as 2026 Begins
The Big Picture
As we settle into the new year, the Twin Cities housing market feels more grounded than it has in a while. After several years of sharp shifts, the pace has leveled out. Mortgage rates have eased from last year’s highs, inventory has slowly improved, and both buyers and sellers are approaching decisions with more intention and less urgency.
Last year played out as a tale of two markets. Strong activity at the entry level, particularly under $400K, and continued momentum at the high end above $1.5M.
One Question People Are Asking
“Is it still a seller’s market?” In many cases, yes — but not everywhere. The market hasn’t shifted fully in favor of buyers, yet it’s more balanced than it has been in recent years. As we enter 2026, it’s important to remember that the market you’re buying in may be behaving very differently than the one you’re selling in.
What We’ll Be Watching
One area where we’ve seen less movement is among homeowners who have been in their homes for ten years or less. Many have chosen to sit tight rather than make a move. As 2026 unfolds, we’ll be watching to see whether more of these sellers decide to come to market, which could help unlock activity across multiple price points.
Shift in Lending Limts Worth Noting
In 2026, the 30-year conventional loan limit is $832,750. In 2016, it was $417,000. Nearly doubling in ten years, this single number tells a larger story about how dramatically the housing market has evolved.
Strategy Over Predictions
Meaningful decisions come from understanding your own timing and options, not from trying to predict the market.
As you look ahead to 2026, our team is here to work through a plan that fits your goals. EMAIL US if you’d like to get started.
