Published October 1, 2026 in Market Update

Rates are back above 7%, but south metro sales still moved higher

By Austin Eaton

Real estate, Primary market

Rates crossed back above 7% last week. That is a real hurdle. But it did not stop buyers here, and that matters if you are thinking about your next move.

Freddie Mac reported the 30-year fixed rate averaged 7.03% as of September 24, 2026. Realtor.com noted that was the first reading above 7% since January 2025, and that rates jumped 19 basis points in a single week, the largest one-week move since April 2025.

Even so, the Real Estate Data Aggregator counted 1,259 homes sold across the south metro in the three months ending July 31, 2026. That is up 10.7% from the same three months a year before.

Pending sales are the clearest sign of where things are heading. The Real Estate Data Aggregator counted 1,263 pending sales across the market in that same period, up 12.3%. Buyers are still committing.

More homes came to market too. New listings were up 14% and homes for sale rose 22.4%, both from the Real Estate Data Aggregator. More choices for buyers is a real shift from the last few years.

What the national picture says

The National Association of Realtors reported that existing-home sales nationally were down 2.0% month over month in August 2026. But year-to-date through the first eight months of 2026, sales were still up 1.6% from the same stretch a year before.

The National Association of Realtors also put the national months' supply of homes at 4.9 months, the highest level in over ten years. The south metro is running well below that. The Real Estate Data Aggregator shows supply here ranging from 1.6 months in 55122 to 3.1 months in 55044.

The Federal Housing Finance Agency reported U.S. house prices rose 2.1% year over year between the second quarter of 2025 and the second quarter of 2026, and 0.3% quarter over quarter from the first quarter to the second quarter of 2026. Prices are still moving, just more slowly.

How each ZIP code read in the three months ending July 31, 2026

The story was not the same everywhere. Here is what the Real Estate Data Aggregator counted in each area.

A few things worth noting by area

55044, Lakeville: The Real Estate Data Aggregator counted 341 homes sold, up 16.4%. The median sale price was $547,000, up 2.4%. New listings jumped 22.1% and homes for sale rose 30.3%, so buyers have more to look at. Homes took a median of 28 days, five days longer than a year before.

55068, Rosemount: The Real Estate Data Aggregator counted 182 homes sold, up 3.4%. The median sale price dipped 4.7% to $429,000. Homes for sale actually fell 7.7%, so supply tightened even as prices slipped a little. Homes averaged 34 days on market, the longest of any ZIP in this market.

55124, Apple Valley: The Real Estate Data Aggregator counted 226 homes sold, though that was down 1.7%. The median sale price slipped 1.9% to $380,000. Homes for sale rose 76.2%, a big jump in inventory. Still, homes moved in a median of 21 days and 53.3% went under contract within two weeks of listing.

55337, Burnsville: The Real Estate Data Aggregator counted 181 homes sold, up 13.8%. The median sale price dipped 4.4% to $373,000. Pending sales were up 28.1%. Homes sold at 100.8% of list on average, and 41.4% sold above list. At 2.0 months of supply, this was the tightest market in the group.

55122, Eagan: The Real Estate Data Aggregator counted 125 homes sold, up 20.2%. The median sale price rose 2.6% to $386,900. Homes moved in a median of 18 days, three days faster than a year before. More than half, 53.6%, sold above list price, up 7.4 points. At 1.6 months of supply, inventory is very lean.

55024, Farmington: The Real Estate Data Aggregator counted 204 homes sold, up 16.6%. The median sale price rose 2.5% to $405,000. Pending sales were up 19.4%. Days on market held steady at 27. New listings rose 10.1%.

What this means for you

Higher rates are a real cost. I am not going to pretend otherwise. But buyers did not disappear. Sales rose, pending contracts rose and new listings rose. That is a market that is still moving.

If you are a seller, more inventory means more competition than a year ago. Price and condition matter more now. If you are a buyer, you have more choices than you did, and sellers are not all getting multiple offers above list the way they once were.

One thing to keep in mind: these are ZIP code numbers. One street can read very differently from the whole ZIP. If you want to know what the data says about your specific address, just reach out.