R
eal estate agents are eyeing the Federal Reserve’s final rate decision this Wednesday, as the market steadies after pandemic turbulence.

    In Minnesota, the seasonal dip between Thanksgiving and Christmas has slowed activity, but experts predict a robust spring surge. “We’re optimistic about a strong spring,” said Jennifer Livingston, president of the Saint Paul Area Association of Realtors.

    Livingston notes buyers are now prioritizing monthly affordability over chasing historic lows. “The expectation of 3% rates has faded; most are settling into the high‑5s to low‑6s,” she explained.

    First‑time buyers are now averaging 40 years old, reflecting affordability hurdles and a wait for financial readiness. Inventory still lags demand, though first‑time buyer programs are slated to resume in 2026.

    Data from the Minnesota and Twin Cities Realtor Associations shows the median home price hit $351,000 in October, after peaking at $370,000 in summer.

    Brian Durham of Realty Group LPT highlighted that market conditions differ by location, price, and home type, and that buyer anxiety largely centers on interest rates. “We expect a steady, plodding market next year,” he said, noting Minnesota’s relative stability compared to states like Florida.

    Affordability challenges stem not only from price but also rising insurance premiums and property taxes. “You can’t time the market,” Durham advised. “If the payment fits your budget, buy.”