Minneapolis, MN 55405 Real Estate Market Report

ZIP Code: 55405
Report Date: March 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

The Minneapolis market is currently characterized by a median sold price of $499,000, reflecting a stable yet cautious environment as the spring season unfolds. Although the market has shown signs of stabilization, it is important to note that the median listing price stands significantly higher at $1,145,000, indicating a notable pricing gap that may create friction for sellers. This situation suggests that while some properties are still attracting multiple offers, overall market activity remains moderate, with a median days on market of 295, pointing to slower sales velocity in the current landscape.

The market temperature is assessed as neutral, indicating a balanced environment despite slight year-over-year price declines. Elevated inventory levels are present, which may suggest excess supply relative to sales activity. This dynamic, combined with elevated interest rate pressure, appears to temper buyer enthusiasm, impacting transaction volume. As the market continues to adjust, it remains crucial for sellers to align their expectations with current buyer sentiment to facilitate successful transactions.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

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Property Taxes

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Liquidity & Velocity

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

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Market Trends & Context

Understanding Market Temperature

A Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in the Minneapolis market average around 6.11% as of mid-March 2026, which is 0.54% lower than the 6.65% average from March 2025.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. The median sold price of $499,000 indicates a stable market, but a significant gap exists with the median listing price of $1,145,000, suggesting potential pricing friction.

2. With a median days on market of 295, the market is experiencing slower sales velocity, which may affect liquidity for sellers.

3. The market temperature is neutral, reflecting a balanced environment despite slight year-over-year price declines.

4. Elevated inventory levels suggest excess supply relative to sales activity, which may pressure pricing in the near term.

5. Interest rates remain elevated, with current 30-year fixed mortgage rates averaging around 6.11%, which is higher than historical norms, potentially dampening buyer demand.

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Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.