The Downtown Minneapolis real estate market opened 2026 with a quieter, more reflective start. January — and the early weeks of February — are a period of challenge shaped by broader uncertainty combined with the typical seasonal slowdown. Still, real estate continues to move forward, even amid daily unknowns. Buyers and sellers are engaging thoughtfully, and meaningful transactions are happening where preparation and timing align.
Comparing January 2026 to January 2025 offers insight into a market that is recalibrating rather than retreating.
New Listings
January 2026: 52 (-24.6% YoY)
New listing activity declined notably compared to last year, reflecting a hesitancy among sellers to enter the market during a time of historical significance in action. Many homeowners are choosing to pause, observe, and wait for clearer conditions in the short term — a common and understandable response for January, amplified this year by broader movements.
For buyers, fewer new listings mean that well-positioned properties still command attention. Quality, pricing, and presentation matter more than ever in a market where supply is selective.
Pending & Closed Sales
Pending Sales:
January 2026: 18 (-40.0% YoY)
Closed Sales:
January 2026: 22 (-40.5% YoY)
Many buyers remain active but cautious — watching interest rates, assessing personal stability, and taking some time before committing.
Closings followed suit, reflecting deals that were largely negotiated late last year. This slowdown is not unusual for January, though this year’s decline is sharper than typical. Even so, transactions are continuing, underscoring that real estate does not stop — it simply adjusts pace during periods of uncertainty.
Median Days on Market
January 2026: 58 days (-47.3% YoY)
Despite slower activity overall, homes that did sell moved significantly faster than last year. This drop in days on market suggests that motivated sellers who priced appropriately and prepared their homes well were rewarded with efficient sales.
This dynamic highlights a key theme: while fewer properties are trading hands, the right listings are still finding their buyers — often decisively.
Median Sales Price
January 2026: $442,500 (+23.0% YoY)
The standout metric this month is price. Despite lower volume, the median sales price rose sharply compared to January 2025. This increase reflects a concentration of higher-quality, better-located, or more updated properties closing.
In short: fewer sales, but stronger ones. Downtown continues to support value where lifestyle, condition, and location intersect.
Median Price per Square Foot
January 2026: $275 (-5.2% YoY)
Price per square foot dipped modestly, signaling a shift toward larger units, more space-focused buyers, or buildings where value outweighs novelty. Buyers are prioritizing livability and long-term comfort over peak pricing metrics — a trend that aligns with the more thoughtful tone of today’s market.
The Broader Picture
January 2026 reflects a market navigating complexity with resilience. Yes, this month — and the weeks extending into February — created pause, and understandably so. But real estate continues, even when headlines are busy and decisions feel heavier.
This is a market that rewards clarity and strategy. Sellers benefit from realism and preparation. Buyers benefit from patience and perspective. And for those who engage thoughtfully, opportunities still exist — even in quieter moments like these.
REACH OUT TO DISCUSS HOW THESE NUMBERS AFFECT YOUR MARKET TIMING AT [email protected]
Data retrieved from the NorthStarMLS via map of Downtown Minneapolis Neighborhoods including: Loring Park, Elliot Park, Downtown West, Central Minneapolis, North Loop, East Town, Mill District, Nicollet Island, St. Anthony West, and Marcy-Holmes.
HAVE QUESTIONS ABOUT DOWNTOWN MINNEAPOLIS OR SURROUNDING REAL ESTATE MARKETS?
Contact our team by call, email, or submitting a form at: https://lynnburnrealestate.com/
