If Buyers Are Sitting Out, Why Are Prices Holding Up?
With more homes on the market, fewer buyers making offers, and affordability still a challenge, you might expect home prices to be coming down. But that’s not quite what the numbers are telling us…
| INVENTORY | PENDING SALES | MEDIAN PRICE |
| +11.2% | -11.7% | +1.3% |
| (More Homes!) | (Fewer Contracts) | (Still Higher) |
Source: Minnesota Realtors, September 2026 Housing Market Report
So Why Are Prices Holding Up?
For starters, even with more homes available, we’re still short of the inventory we’d expect in a truly balanced market. We’re also seeing a market that behaves very differently depending on the neighborhood, price range, and type of home. Some properties are still attracting strong interest, while others are sitting longer and requiring price adjustments.
And those price reductions? They don’t necessarily mean home values are falling. In many cases, sellers simply started with an asking price that was too ambitious for today’s market. Even after adjusting, homes can still sell for more than comparable properties did a year ago, although appreciation has slowed.
Buyers may have more negotiating room, but that doesn’t mean home values are declining. The asking price is a marketing decision. Ultimately, market value is determined by what buyers are willing to pay.
