Is the Twin Cities Housing Market Finally Stabilizing for 2026?

The closer we get to 2026, the louder the questions become: Is the market finally calming down? Will it be a good time to buy or sell? While no one can predict the future with total accuracy, some meaningful trends are already emerging, enough to help you plan your next move with clarity. Here’s where the market is headed.

Interest rates are expected to stabilize. Interest rates are generally expected to level off in 2026. This type of stability often brings hesitant buyers back into the market. When rates are steady, people feel more confident about long-term decisions, which helps create consistent demand.

Low inventory continues. The lack of inventory will remain one of the biggest challenges come 2026. New construction still isn’t matching buyer demand, so well-priced homes will continue to sell quickly. Even without the intensity of past bidding wars, scarcity will keep competition alive.

Buyer expectations are shifting. More people want energy-efficient features, smart-home technology, and flexible spaces that support working from home. Sellers who highlight these features will stand out in a crowd, giving them a real advantage.

A balanced 2026 market. Taken together, these trends point toward a balanced market ahead. It won’t resemble the high-pressure atmosphere of previous years, but it won’t slow down either. Instead, 2026 is shaping up to deliver steady, healthy activity.

Success in 2026, whether buying or selling, comes down to smart strategy and preparation. To see what your home could sell for next year, get an instant online evaluation at JohnSchusterGroup.com, or call (952) 222-9000 for expert guidance. I’ll help you build a smart plan that fits your goals.