While inventory is up and activity has slowed, prices are still rising.
Every year, as summer winds down and families prepare for the school year, the real estate market shifts gears. August is often a quieter month because people are squeezing in last-minute vacations, organizing school supplies, or shuttling kids to fall sports. This pause happens almost every year, and what we are seeing right now is consistent with that seasonal pattern. The difference is that, after several years of unusual conditions, this slowdown feels both normal and healthy.
Where does the market stand? On paper, we are still in a seller’s market. In the Twin Cities, we have about three months of housing supply. To put that in perspective, a balanced market is five to six months of supply. That means if no new listings hit the market, it would take that long for everything to sell. With only three months, sellers technically still have the upper hand. But here’s the twist: the way the market is behaving feels much more like a buyer’s market. Homes are sitting on the market longer, negotiations are back on the table, and buyers actually have a bit of breathing room again.
Buyers and sellers aren’t on the same page. This is where things get interesting. Buyers are testing the waters with lower offers, assuming they have more leverage. Sellers, meanwhile, are still looking at home prices from the last five years and expecting the same results. The problem? The market has shifted. Both sides are adjusting to this “new normal,” and it is creating some push and pull as everyone figures out what today’s values really mean.
“With only three months of housing supply, the Twin Cities technically favors sellers, but buyers are gaining leverage as conditions shift.”
A return to regular cycles. Remember how the market used to slow down in late summer and then pick back up in the fall? That’s precisely what we’re seeing again. For years, those seasonal patterns disappeared as demand skyrocketed and homes flew off the shelves. Now, we’re watching a healthier, more predictable cycle return. It might feel slower, but in reality, this is what a functioning market is supposed to look like.
Prices are still inching up. One important thing to note: prices aren’t falling. The median sales price has increased by about 3%. That’s not the massive jump we saw a few years ago, but it’s steady growth. Sellers are still gaining equity, and buyers are no longer being priced out overnight. It’s a middle ground that benefits both sides more than the extremes we saw before.
The market may feel different right now, but that isn’t a bad thing. With inventory rising and buyers and sellers adjusting their expectations, strategy matters more than ever. Working with an experienced agent who understands local trends and knows how to navigate these changes can make all the difference. If you’re thinking about buying or selling in today’s market, call or text us at 952-212-3597 or email ChadandSara@edinarealty.com. Let’s talk about your goals and what’s happening in your neighborhood.
