When Susie Homebuyer bought her first home in 2020, the Twin Cities market was steady and affordable. The median sales price for the 16-county region that year was $305,000, and the average sales price was $354,406. Sellers were receiving 99.8% of their original list price, and homes averaged 43 days on the market. Mortgage rates hovered near historic lows, often around 3%. Susie was able to lock in that low rate, which meant her monthly payment was manageable and her long-term stability was strong.In 2021 everything shifted. Prices rose quickly. The median sales price climbed to $339,900, and sellers were now getting 101.9% of their original list price on average. Homes sold in just 28 days, and there were 66,319 closed sales across the region. Mortgage rates were still low, hovering between the high twos and low threes. Susie was relieved she had bought when she did, because her friends trying to buy now were writing multiple offers and facing stiff competition.By 2022 the market was still strong, but rising interest rates began to cool things off. The median sales price reached $362,500, and the average sales price was $424,836. Sellers received 100.9% of their original list price, and cumulative days on market ticked up to 31. Closed sales dropped to 53,714 as affordability tightened. Mortgage rates climbed above 5% for the first time in years, which changed the monthly payment picture dramatically for new buyers. Susie, however, continued paying on her low-rate loan from 2020.In 2023 prices steadied, but the pace of sales slowed further. The median sales price was $368,000, and the average sales price came in at $434,912. Sellers received 99.3% of their original list price, and homes averaged 40 days on the market. Mortgage rates hovered in the 6-7% range, which kept demand in check. Buyers now had more breathing room, but their cost of borrowing was far higher than what Susie had secured.2024 brought modest growth. The median sales price rose to $380,000, while the average sales price was $450,131. Sellers received 98.7% of their original list price, and cumulative days on market reached 45. The region recorded 45,145 closed sales and 64,496 new listings, ending the year with 6,712 active listings. Interest rates stayed elevated, generally in the 6-7% percent range, continuing to weigh on affordability. Susie saw her home’s value continue to rise, but she also saw how difficult it was for new buyers trying to enter the market with higher rates.By August 2025, the market showed its latest shape. The median sales price for that month was $399,999, and the average sales price was $475,122. Cumulative days on market was 42, and sellers were still receiving 98.7% of their original list price. Inventory had grown to 10,225 active listings, which translated to 2.7 months of supply. Mortgage rates as of September 2025 were averaging about 6.3%, more than double the rates Susie locked in when she bought her home in 2020. What Susie LearnedLooking back across the six years, Susie can clearly see the benefit of buying when she did. She purchased at a lower price point, locked in a historically low interest rate, and has built equity year after year. Her home is worth more today than when she bought it, and her monthly payment is far below what it would be if she were buying the same home in 2025.At the same time, Susie knows there is no one-size-fits-all answer for timing. Some years are tougher for buyers, some are tougher for sellers, and some bring challenges for both. If Susie needed to move today, she would not be afraid of the market. She would simply look at the numbers and make the decision based on her life.Her message to friends is straightforward. Homeownership is usually a good long-term choice, but the right time to buy or sell depends on you. If it is the right time for your life, it is the right time for your move.
