New Year, New Market

As 2025 comes to a close, I want to start with a simple but genuine thank you. Thank you for trusting me, referring me, asking questions, and allowing me to be part of your real estate decisions this past year. I don’t take that lightly.

We’ve now experienced back-to-back years with historically low transaction volume, something confirmed both nationally and here in Minnesota. According to data from the National Association of Realtors and Minnesota Realtors®, overall home sales remain well below pre-pandemic norms, even as buyer interest has shown signs of life at various points throughout the year.

Naturally, many people are asking the same question. Will 2026 finally be the rebound year?
If you read the headlines, you can find predictions pointing in every direction. Boom, bust, or something in between.

Based on the data and what I’m seeing locally, my outlook for Minnesota is more measured.

National housing data shows that price growth slowed significantly in 2025, marking one of the slowest annual increases in more than a decade. That same data also suggests modest price growth ahead rather than dramatic swings. Here in Minnesota, especially in the Twin Cities and other desirable pockets, prices have continued to hold steady or rise slightly, supported by ongoing supply constraints.

Inventory remains the key factor. Reports from Minnesota Realtors® and NorthstarMLS continue to show limited housing supply in the most sought-after areas, which keeps well-priced, well-maintained homes competitive. At the same time, transaction volume remains relatively muted, reflecting affordability challenges, interest rate sensitivity, and cautious decision-making from both buyers and sellers.

Looking ahead to 2026, my expectation is more of the same rather than a dramatic shift.

• Steady to slightly rising prices

• Continued low inventory in high-demand neighborhoods

• Ongoing challenges related to affordability and certain HOAs

That may not make for flashy headlines, but it does create opportunity for buyers and sellers who are informed, prepared, and strategic.

Whatever the market brings this year, my role stays the same. To help you navigate the noise, understand the data, and make decisions that align with your goals, not someone else’s predictions.

I look forward to being your trusted real estate resource in 2026 and beyond.

Wishing you a happy and healthy new year,
Caleb

People > Properties