P
rices keep climbing, yet homes are staying on the market longer and buyers are demanding more concessions. In the Twin Cities metro, luxury sales are keeping the market afloat while the broader housing segment slows.

    **Market Snapshot (September)**

    - Purchase agreements rose 8% year‑over‑year across the 16‑county metro.

    - New listings increased 5%, and closings (reflecting contracts signed 2‑3 months earlier) jumped over 7%.

    - The median sale price edged up to $390,000.

    These gains contrast with nationwide trends where many metros see falling sales and prices amid economic uncertainty and the expectation that mortgage rates will stay high.

    **Expert Insight**

    Sally English, a Twin Cities sales agent, notes that rates still influence every buyer, whether paying cash or financing. “People are taking time to think it through,” she says.

    **Key Takeaways**

    1. **National Context**

     - Summer home values in the metro rose 2.62%, the ninth‑largest gain nationwide.

     - Many major metros experienced declines, per the S&P Cotality Case‑Shiller Index, which tracks repeat sales.

    2. **Buyer‑Seller Dynamics**

     - The Twin Cities remains a buyer‑favorable market with multiple offers and prices above asking.

     - This fall, the market is cooling: homes take longer to sell, though days on market stay below normal.

     - Average sale time is 44 days, five days longer than the same period last year.

    3. **Upper‑Bracket Homes**

     - Properties over $1 million now take twice as long to sell.

     - Sales of these homes rose 20% year‑over‑year, but sellers had to cut prices, accepting about 5% below the asking price—the steepest discount among all price ranges.

    4. **First‑Time & Entry‑Level Buyers**

     - Starter home sales have declined all year.

     - Fewer listings and rising prices erode affordability, even as mortgage rates have eased slightly.

    5. **Mortgage Rates**

     - The 30‑year fixed rate fell from 6.44% at the start of September to 6.29% mid‑month.

     - Despite this drop, pending sales and new listings fell in late September and early October compared to last year.

    6. **Buyer Leverage**

     - Buyers are gaining power; cancellations of contracts are rising.

     - In August, 15% of nationwide contracts were canceled—up nearly a full percentage point from a year ago and the highest since 2017.

     - Buyers who rush to make an offer after the first showing are more likely to cancel after inspection.

     - Those who take time for a second showing or due diligence tend to stay committed.

    7. **Seller Flexibility**

     - Sellers are more willing to offer discounts and accept contingencies (inspection, financing, sale of buyer’s home).

     - Upper‑bracket sellers, in particular, are adjusting to a rate‑fatigued market.

    **Illustrative Example**

    A $4.5 million house in Eden Prairie, listed for nearly 450 days, finally accepted an offer contingent on the buyer’s home sale after two price reductions to $4.1 million. English highlights that buyers are selective and willing to wait for the right property. “To succeed, you must be adaptable,” she says.

    **Conclusion**

    The Twin Cities market remains buoyed by luxury sales, but rising prices, longer sale times, and increased buyer leverage signal a shift toward a more balanced, buyer‑friendly environment. Sellers who adapt—by offering concessions and staying flexible—will navigate the evolving landscape more successfully.