How to buy a house in Minnesota

Compared to the rest of the U.S., Minnesota has an affordable housing market with a median home price of $361,100. It’s also home to stunning landscapes, including over 10,000 lakes and 64 state parks.

As a result, Minnesota can be a great place to buy a home. Whether you’re a first-time buyer or relocating for a change of scenery, this state has something for everyone.

Minnesota’s housing market: At a glance

Here’s a snapshot of Minnesota’s housing market as of October 2025:

Understanding the housing market in Minnesota

Let’s dive deeper into Minnesota’s current housing trends:

Median home price is $360,600

Minnesota’s median home price has steadily climbed over the last five years. In October 2025, it reached $360,600, down from its June 2025 peak but up 2.7% from the same time last year.

The state’s home values are influenced by these key factors:

• Property type: A home’s size, age, condition, and features all impact the sales price it can command.
• Location: Some cities have higher median home values than others. As of October 2025, Lakeville ($476,000) and Blaine ($412,500) are more expensive than Minneapolis ($350,000) and Northfield ($256,000).
• Market conditions: Housing supply and demand trends impact a home’s price.

To see how much home you can afford in your ideal neighborhood in Minnesota, you can enter your financial details into Rocket’s home affordability calculator.

Market trends and inventory

Between June and August 2025, more than 2,000 people were searching to move into Minnesota versus out of the state on Redfin. This can put upward pressure on home prices by increasing housing demand.

Meanwhile, Minnesota had 21,613 homes for sale in October 2025, a 2.5% jump from last year. As a result, homebuyers have a growing selection of homes to choose from, which can be a welcome change from the wider U.S. housing shortage.

You can hire a local real estate agent who can bring local expertise to the process for help navigating Minnesota’s housing market, especially if you are new to the state.

Spring and summer are peak shopping seasons

Minnesota’s peak homebuying seasons are spring and summer when warm weather and the end of the school year make it easier for many to move. However, fall and winter tend to offer lower home prices due to slowing demand. The best time of year to buy a house ultimately depends on your priorities.

How to buy a house in Minnesota

To buy a house in Minnesota, follow these steps:

Step 1: Check your credit and set a budget

First, use a mortgage calculator to determine a tentative home purchase budget. This will require you to check your credit score and see how much savings you have to put toward a down payment, closing costs, and other homeowner expenses.

After entering these and other financial details into a mortgage calculator, you’ll have a better idea of how much you can borrow for a house.

Step 2: Decide on the type of financing you want

Next, explore different financing options. The two basic types of mortgages are conventional loans and government-backed loans (e.g., FHA, VA, and USDA loans).

Compare and contrast different loan options to see which best suits your needs. Here’s a quick breakdown of common mortgage types:

Step 3: Apply for preapproval

Preapproval is a conditional loan offer from a lender based on the property and your personal finances. By getting a preapproval letter, you can have a better idea of your home purchase budget and show sellers that you’re serious about buying.

Step 4: Hire a real estate agent in Minnesota

A local Minnesota real estate agent can help you navigate the homebuying process. For example, they can help you find homes for sale, tour properties, and make offers.

To find a real estate agent, shop around. Check online reviews from past clients to ensure the agent has a positive track record, and then ask them questions about their experience and services to ensure they’re a good fit.

Keep in mind that Minnesota allows dual agency, which is when one agent represents both buyer and seller. However, both parties must provide written consent.

Step 5: Start house hunting

Once you’ve hired an agent, start home shopping in earnest. For example, you can search for homes for sale on Redfin or a multiple listing service (MLS) portal created by your real estate agent or REALTOR®.

From there, you can attend open houses and virtual tours to get a closer look at homes.

When narrowing down your list of potential homes to buy, pay attention to:

• School districts
• Local amenities
• Homeowners association fees
• Commute times
• Property taxes
• Other neighborhood factors

Step 7: Make an offer and negotiate

When you’ve found a home you like, make an offer. Your agent can help you draft the offer letter with a proposed purchase price, earnest money deposit, and contingencies.

Earnest money is a good-faith deposit that goes toward the purchase price if the sale goes through. However, if you back out of the deal, you may forfeit the deposit.

Key contingencies include a professional home inspection to determine the home’s condition and an appraisal to determine its market value.

The seller will accept, reject, or counter your offer. Respond accordingly, and remember that most real estate sales involve some negotiation.

Step 8: Continue with the mortgage closing process

If your offer is accepted, you can move on to the closing process. This is when you sign closing documents to finalize the purchase and your new mortgage. You’ll also need to transfer funds for any down payment and closing costs.

Though closing costs are negotiable, they’re usually 2% to 5% of the mortgage amount.

FAQ

Here are answers to some frequently asked questions about buying a house in Minnesota:

How much money do I need to buy a house in Minnesota?

The amount of money you need to buy a house in Minnesota depends on the property, current market conditions, and your personal finances. Use Rocket’s mortgage calculator to estimate how much you may need for a down payment and how much house you can afford.

Is it cheaper to build or buy a home in Minnesota?

Buying an existing home in Minnesota is generally cheaper than building a new one. However, building gives you more customization options. Ultimately, whether you should build vs. buy depends on your priorities.

Are house prices dropping in Minnesota?

Home prices in Minnesota have dropped since the peak homebuying season this year. However, they are rising year over year.

What is the average mortgage payment in Minnesota?

The typical all-in mortgage payment in Minnesota stands at $2,637, including all counties, property types, and price ranges.

The bottom line: The Land of 10,000 Lakes may be a good place for you to call home

Buying a home in Minnesota can be exciting. Between the state’s affordable home prices, wide selection of properties, and beautiful natural surroundings, there’s a lot to look forward to.

To navigate the homebuying process with confidence, set a budget, compare loan options, get preapproved for a mortgage, and work with a knowledgeable real estate agent or REALTOR®.

If you’re ready to find out what you may qualify for, you can take the next step by speaking with a Rocket Mortgage® Home Loan Expert¹ today. We can help you explore your financing options so you can find a mortgage that’s right for you.

¹Rocket Mortgage, LLC, Rocket Homes Real Estate LLC, RockLoans Marketplace LLC (doing business as Rocket Loans), and Rocket Money, Inc., are separate operating subsidiaries of Rocket Limited Partnership. Redfin Corporation is an affiliated business of Rocket Limited Partnership. Each company is a separate legal entity operated and managed through its own management and governance structure.Rocket Limited Partnership is an indirect, wholly owned subsidiary of Rocket Companies, Inc. (NYSE: RKT).

² Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

³Rocket Mortgage is not acting on behalf of FHA or HUD.