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As we head into the 2026 spring real estate market, there’s no shortage of headlines, opinions, and predictions about what’s coming next. My goal with this update is simple: cut through the noise and give you a clear, practical snapshot of the market — whether you’re thinking about buying, selling, investing, or just keeping an eye on your home’s value.
Below is a look at what national housing experts are forecasting for 2026, followed by how those trends are showing up locally here in Minnesota and the Twin Cities.
National Housing Market Outlook for 2026
Here’s the big-picture view of what economists and housing analysts are expecting in the year ahead:
Home Prices
Most national forecasts call for continued modest price growth in 2026. Rather than dramatic spikes or sharp declines, experts expect low single-digit appreciation — roughly 2–3% on average. In other words, home values are projected to continue rising, just at a healthier and more sustainable pace than we saw in the peak years.
Mortgage Rates
After several years of elevated borrowing costs, mortgage rates are widely expected to remain in the low-6% range throughout 2026. While that’s still higher than the historically low rates many homeowners locked in years ago, it’s an improvement from recent highs and provides a bit more breathing room for buyers.
There is some speculation that changes at the Federal Reserve — including the appointment of a new Chair — could put downward pressure on rates. That said, it’s still too early to bank on this theoretical possibility.
Inventory Levels
Housing inventory is slowly increasing, but it remains below long-term historical norms. Some forecasts suggest nearly 9% more homes for sale year over year, which could finally give buyers more options than they’ve had in recent years.
Sales Activity
Existing-home sales are expected to rise modestly in 2026 as buyer confidence improves and sellers who have been sitting on the sidelines begin to re-enter the market.
Bottom line: the housing market isn’t crashing — it’s normalizing. We’re moving toward a more balanced environment where price growth steadies, inventory improves, and both buyers and sellers can find opportunities.
Local Market Snapshot: Minnesota & the Twin Cities
National trends are helpful, but real estate is always local. Here’s what we’re seeing closer to home:
- Typical home values in Minnesota are currently around $390,000, with modest year-over-year appreciation.
- Inventory across the Twin Cities is gradually increasing, which means buyers are starting to see more options — and sellers are facing a bit more competition than in the ultra-tight markets of recent years.
While conditions vary by city, neighborhood, and even street, the overall local picture mirrors national trends: steady demand, modest price growth, and continued strength in areas with good schools, amenities, and access to employment centers.
What This Means for You
If You’re Thinking About Selling
- More inventory and stabilizing prices may reduce the extreme competition we saw in past years, but demand remains healthy — especially for homes that are priced correctly and positioned well online.
- Sellers who list early in the spring often capture motivated buyers before the market becomes more crowded.
If you’re considering selling, strategy matters more than ever. From pricing to presentation to digital exposure, I can help you position your home to maximize visibility and value.
If You’re Thinking About Buying
- Slightly lower or stable mortgage rates could improve affordability compared to the past couple of years.
- Increased inventory may give you more choices and greater negotiating leverage — particularly for first-time buyers and move-up buyers.
If you’d like, I’m happy to send you the latest homes that fit your criteria or walk through what today’s market means for your budget and timeline.
If You’re Not Planning a Move Just Yet
Even if you’re staying put, this market still presents opportunities to stay informed:
- It’s a great time to get an updated estimate of your home’s value.
- Curious how much equity you’ve built? I can put together a personalized snapshot.
- Thinking about an investment property down the road? We can explore options that align with your goals.
Let’s Connect
Whether you’re actively planning a move this spring or simply want to stay educated about the market, I’m here to help you navigate your next step with confidence.
Feel free to reach out anytime — I’m always happy to be a resource.
Christian Plewacki – MN REALTOR® | Owner of Plewacki Realty LLC, brokered by Coldwell Banker
952-452-0089
