Minneapolis Real Estate Market 2026: Selling at 100% of Ask Despite a Soft Year

Minneapolis had a soft 2025. Median home values declined 2.89% year over year as of February 2026. And yet PropertyIQ scores Minneapolis a 78 out of 100 as of February 28, 2026.

This apparent contradiction reveals what the PropertyIQ Score actually measures.

The Demand Fundamentals Are Solid

Minneapolis's pending-to-active ratio is 0.6519 as of February 2026 — 65% of active listings have buyers going under contract. Homes average 40 days on market. The sale-to-list ratio is 100% as of November 2025: sellers receive exactly asking price. Only 10.52% of listings have price reductions. A market with year-over-year price decline and 100% sale-to-list is a market where the decline represents a reset, not a collapse.

Low Overvaluation

Minneapolis is only 8.8% overvalued relative to local fundamentals as of February 2026. The income needed to buy is approximately $112,272. The median household income is $98,180 (2023 Census). The affordability picture is tighter than Midwest peers like Cleveland or Kansas City, but far cleaner than Sun Belt markets.

February Showed Sharp Recovery

While the year-over-year reading is negative, listing prices rose 4.31% month over month in February 2026 alone — a significant move heading into spring buying season.

Inventory Is Rising but Being Absorbed

There are 6,144 homes for sale, up 15.37% year over year. New listings rose 10.65%. But the demand picture — 65% pending ratio, 40-day absorption, 100% sale-to-list — is absorbing this supply. The key risk is whether inventory growth continues to outpace demand.

The Caveat

Zillow forecasts only 0.2% near-term appreciation as of December 2025 — one of the weakest forecasts in this report. Inventory growth is a concern. Minneapolis is not a market where investors should expect near-term price appreciation to do the work. The case here is demand stability and reasonable fundamentals, not near-term upside.

PropertyIQ score as of February 28, 2026. Listing and inventory data as of February 1, 2026. Rent and forecast data as of December 2025. All data for informational purposes only.