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On February 23, 2026, the Minnesota real estate market continues to show strong growth as home prices rise and inventory remains low. According to a report released by the Minnesota Association of Realtors, the median home price in the state has increased by 8% compared to this time last year, reaching a new record high of $325,000.The lack of inventory continues to be a major challenge for buyers in the market, with the number of homes for sale down by 15% compared to last year. This has led to increased competition among buyers, resulting in multiple offer situations and homes selling quickly for above asking price.Despite the challenging market conditions for buyers, sellers are benefiting from the high demand and low inventory. Homes are selling faster than ever, with the average days on market dropping to just 30 days. Sellers are also receiving offers that are, on average, 5% above their asking price.In addition to the strong residential market, commercial real estate in Minnesota is also experiencing growth. Office and retail vacancy rates are at historic lows, prompting developers to start new construction projects to meet the demand for space. The industrial sector is also seeing growth, driven by the increase in e-commerce and distribution centers in the state.Experts predict that the Minnesota real estate market will continue to see growth in the coming months, fueled by low interest rates, a growing population, and a strong economy. However, they caution that the lack of inventory could lead to affordability challenges for buyers in the future.Overall, the outlook for the Minnesota real estate market remains positive, with both residential and commercial sectors showing signs of continued growth and strength. Buyers and sellers alike are advised to work with a knowledgeable real estate agent to navigate the competitive market and make informed decisions.