Spring Market Preview: What to Expect in 2026

Spring is officially here (meteorologically speaking), and with it comes the busiest real estate season of the year. Whether you're thinking about buying, selling, or just curious about what's happening in the Twin Cities market, here's what you need to know about spring 2026.

Inventory Is Growing—But Still Tight. After years of historically low inventory, we're finally seeing some relief. New listings are up compared to last year, and more sellers are testing the waters. That said, we're still far from a balanced market. With just over 2 months of supply, it's still very much a seller's market in most price ranges. Translation: if you're selling, you still have the upper hand. If you're buying, you'll face competition—but not the chaos of 2021-2022.

Interest Rates Have Stabilized (And Dropped!). The big news: mortgage rates dipped into the 5% range for the first time in over three years. This is huge for buyers. Even a half-percent drop in your rate can save you hundreds per month and tens of thousands over the life of your loan. If you've been sitting on the sidelines waiting for rates to improve, this is your signal. Rates may not stay this low forever, so buyers who are ready should act now.

Homes Are Selling Faster Than Last Year. Days on market dropped to 64 in January—down 3% from 2025. Well-priced, well-presented homes are still getting multiple offers and selling quickly. The difference from peak frenzy years? Buyers are more cautious and strategic. They're doing inspections, negotiating repairs, and walking away from overpriced listings. It's competitive, but not reckless.

Buyers Have Slightly More Power Than Before. While it's still a seller's market overall, buyers have regained some negotiating leverage compared to 2021-2022. Inspection contingencies are back, appraisal gaps are smaller, and bidding wars aren't automatic. If you're a buyer, work with an experienced agent who knows how to craft strong offers that protect your interests while staying competitive.

Pricing Matters More Than Ever. Overpriced homes are sitting. The median sale price increased just 1.4% in January to $375,000, which signals a steady but not explosive market. Sellers who price high are seeing their homes linger, which leads to price reductions and stale listings. Homes priced right from day one are still getting strong offers within the first two weeks. If you're selling, trust the data—not what your neighbor's cousin's house sold for in 2022.

Spring Competition Is Real—But Manageable. March through May is when the most buyers and sellers enter the market. If you're selling, listing early (like now, in early March) means you face less competition and capture eager buyers before they have 20 other options. If you're buying, be prepared to move quickly when you find the right home, but don't panic—inventory is improving, and you will find something if you're patient and strategic.

What Buyers Should Do Now: Get pre-approved with a reputable lender, talk to an agent about your must-haves and deal-breakers, start touring homes to get a feel for what's available in your price range, and be ready to act when the right home hits the market. Don't wait for the "perfect" time—if rates rise or inventory tightens again, you'll wish you'd moved sooner.

What Sellers Should Do Now: Deep clean and declutter your home now, make minor repairs and touch-ups (paint, caulk, hardware, lighting), get a pre-listing inspection if you want peace of mind, meet with us to price your home strategically based on current comps, and list in early March or April before the market gets flooded in May. The early bird really does get the worm—and the stronger offers.

The Bottom Line: Spring 2026 is shaping up to be a strong but balanced market. Sellers still have the advantage, but buyers have more power than they've had in years. Homes that are priced right, presented well, and marketed strategically will sell quickly and for top dollar. Buyers who are pre-approved, patient, and strategic will find great homes without the chaos of past years.

Whether you're buying, selling, or both, now is the time to make your move. Let's sit down and create a game plan that works for your goals and timeline.