Downtown Minneapolis Real Estate Market: Quarter 3, 2025 Update
As your trusted expert in Downtown Minneapolis real estate, I closely monitor market movements to help both current residents and those considering a move make informed decisions. The third quarter of 2025 tells an interesting story — a market balancing increased yet calculated buyer activity with evolving seller expectations.
New Listings
Over the past three months, 249 new listings came to market, a 1.2% increase compared to the same period last year. While modest, this uptick suggests sellers are cautiously continuing to step forward, encouraged by a healthy buyer pool.
Homes for Sale
At the close of September, 263 homes were available, essentially stable with a 0.4% increase year-over-year. Inventory remains relatively tight, keeping quality properties that are priced well, in demand.
Pending & Closed Sales
Perhaps the most striking shift is in buyer activity. Pending sales surged by 9% while closed sales rose an impressive 16.2%. This growth shows renewed confidence in Downtown Minneapolis living — buyers are committing, and more deals are successfully crossing the finish line.
Median Days on Market
The median days on market climbed to 75, a 66.7% increase. This reflects today’s more deliberate buyers, who are taking time to explore their options. For sellers, it underscores the importance of strategic marketing and presentation to stand out in a thoughtful marketplace.
Median Sales Price
The median sales price settled at $350,000, down 5.8% year-over-year. Similarly, the median price per square foot fell slightly to $303 (-2.3%). While values have adjusted just the slightest bit, Downtown remains one of the most attractive urban luxury markets in the Midwest, offering exceptional opportunities for those seeking to buy at a relative advantage. Let's remember the influx of brand new luxury listings (like the Eleven development) that have greatly slowed in 2025, so this data doesn't necessarily mean sales prices are falling - just that a variety of different homes and price points make up our downtown market.
What This Means for You
For buyers, Q4 presents a rare window — more inventory without oversupply, paired with slightly softened prices and compelling lifestyle amenities. For sellers, the surge in pending and closed sales is proof that well-positioned homes are still commanding strong demand, even if the market requires a bit more patience.
As someone who has guided clients through every market cycle in Downtown Minneapolis for over 15 years, I understand not only the numbers but also the nuanced lifestyle appeal that continues to draw people here — the riverfront views, proximity to the arts, vibrant dining, and a sense of community that blends big-city energy with neighborhood warmth.
If you are considering a move — whether buying or selling — now is the moment to strategize.
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.
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