A 5-step approach to talking about home appreciation honestly, and what it says about the career you’re building
In the Twin Cities, home prices are still rising, just slowly. The metro median sales price climbed 1.3 percent to $405,000 in August 2026, according to MAR. With inflation running around 3.4 percent this year, that means prices are up in nominal terms but roughly flat or slightly down in real terms.
Some agents are avoiding that conversation about real estate and inflation. The agents building long careers are having it on purpose.
If you’re a Twin Cities real estate agent weighing your next move, this matters. How an agent handles an awkward number shows a lot about their business, and about the team behind them.
Clients are more financially literate than ever. Many will run the inflation math on their own, often before the first showing. If they raise it first and you seem caught off guard, you lose credibility that takes months to rebuild.
Knowing the numbers means knowing more than the headline. The median sales price rose 1.3 percent in August, but price per square foot was essentially flat at $218, and the ShowingTime Housing Value Index, which adjusts for the mix of homes selling, dipped 0.2 percent year over year. An agent who can explain why those figures differ sounds like an expert. An agent who only knows “prices are up” does not.
If you want to go deeper on pulling and reading these numbers yourself, our guide to how we actually use InfoSparks and ShowingTime walks through the reports our agents rely on before every appointment.
Clients don’t need an economics lecture. They need one clear, honest line, like: “Prices are still going up a little, just not as fast as the cost of everything else, so in real terms it’s about flat this year.”
Saying that early and plainly builds more trust than dodging it ever could. It also helps to know that appreciation isn’t uniform. In August, the Minneapolis median sales price rose 6.7 percent to $368,000, while St. Paul’s held flat at $315,000, according to Minnesota Realtors®.
This conversation matters just as much with sellers, whose pricing expectations are often anchored to the last few years of fast appreciation. Our Connect, Control, Close framework for the listing table shows how to lead with honest data without losing the listing.
Appreciation is only one reason to own property. Strong agents help clients see the others:
Then there’s the question every renter should consider: compared to what? Nationally, rents rose roughly 2.2 percent between February and May alone. Renters get none of the appreciation and have no control over their next increase. Landlords, on the other hand, can offset slow appreciation with rent growth.
The same thinking applies to timing. Mortgage rates climbed to 6.95 percent in mid-September, up from 6.66 percent three weeks earlier, per Freddie Mac data cited by Minneapolis Area REALTORS®. Agents who can walk clients through tradeoffs like these come across as advisors, not salespeople.
Here’s one of the most useful questions you can ask a buyer: If this home’s price never went up at all, would it still be worth buying for you?
If the answer is yes, because of the life it supports or the equity it builds, the purchase stands on its own. If the answer is no, it’s far better to find that out before closing.
Today’s market gives buyers room to think it through. Twin Cities inventory rose 7.9 percent to 11,698 homes in August, months’ supply reached 3.0, and homes averaged 45 days on market. Sellers received 98.2 percent of their original list price on average, down from 98.8 percent a year earlier. Minnesota Realtors® reported that the statewide market was more balanced than in any August since 2017.
More balance means more negotiating room, and inspections are often where that room shows up. Our inspection negotiation playbook for buyers’ agents covers how to use it well. Clients remember the agent who helped them make a sound decision, and they send their friends to that agent.
Some of the most powerful tools in today’s market aren’t about price at all. They’re about financing. The best agents know which programs are out there and connect their clients to the right local lenders, turning “someday” into “sold.”
Many buyers assume down payment assistance is only for first-time buyers, or that they won’t qualify. In reality, there are programs that serve repeat buyers too, and some can be combined for far more help than most people expect.
Forgivable grants in Hennepin and Ramsey counties. Old National Bank offers a forgivable grant for buyers purchasing in Hennepin or Ramsey County, available to both first-time and repeat buyers whose individual income (applicant only, not household) is under $104,880. The grant covers 3 percent of the purchase price or $10,000, whichever is less, or up to $15,000 for homes in census tracts where 50 percent or more of residents are minorities. It can be paired with conventional options like HomeReady, Home Possible, and Minnesota Housing Start Up loans. At current rates, the program typically fits purchase prices of $400,000 or less, which lines up well with the Twin Cities median of $405,000.
This isn’t just a buyer-side tool. Some listing agents include programs like this in their marketing, showing potential buyers how they could save on upfront costs or buy down their rate. That’s a smart way to attract more qualified buyers to a listing.
Stacking multiple programs. One of our agents recently worked with a lender at Associated Bank who is helping her client combine several assistance programs into one purchase:
That’s $83,000 in potential assistance for a single buyer. For many families, that’s the difference between waiting years and buying now.
Every buyer’s eligibility is different, and programs change often, so the key is building strong relationships with local lenders who know these options inside and out. Agents who make those introductions early give clients a clear path forward, and clients never forget the agent who helped make homeownership possible.
The best agents don’t just help clients build wealth. They build it for themselves, using the same strategy they teach.
Think about what you just did for your buyer. You didn’t rely on one number or one source of help. You looked at appreciation, equity, and financing, then stacked every advantage available. Your career deserves that same approach.
Certified Financial Planner Amanda Neely, shares a story from 2007. She and her husband nearly bought in a booming new construction neighborhood, then chose to stay flexible. When the recession hit, that flexibility let them focus on building the business that became their real financial foundation.
The lesson is empowering: when you build more than one lever, you’re ready for any market. Cash reserves, a diversified retirement plan, and a business with multiple sources of income all put you in control. This year is a great time to set that foundation.
Balanced markets are where great agents separate themselves. Just as buyers go further when they stack assistance programs, agents go further when they stack sources of business.
At Kerby & Cristina Real Estate Experts, agents build production on three pillars: their own sphere of influence, self-set appointments they generate from thousands of team-provided leads, and team-set, vetted appointments scheduled directly on their calendars. That structure keeps business flowing in every season, backed by one-on-one coaching and a dedicated trainer. And because our team works closely with trusted local lenders, our agents can connect clients to programs like the ones above with confidence. This article on why top agents are choosing Kerby & Cristina explains how it all works.
The home you sell this week may not outpace inflation this year. That’s no reason to apologize for the deal. It’s a chance to be the agent who communicates and guides clearly, and whose own plan can handle a year like this one.
Ready to build a real estate career that holds up in any market?
No. Over long periods, home values have often kept pace with or exceeded inflation, but in some years, including 2026, price growth trails inflation. Principal paydown, improvements, and rental income can still build wealth in those years.
The Twin Cities median sales price rose 1.3 percent year over year to $405,000 in August 2026, and 1.5 percent year to date, according to Minneapolis Area REALTORS®.
Nominal appreciation is the raw change in price. Real appreciation subtracts inflation. A home that gains 1.3 percent while inflation runs 3.4 percent has risen nominally but lost ground in real terms.
Look for a team that invests in local market data, coaches honest client conversations, and gives you more than one reliable source of business so your income holds up in slow markets as well as hot ones.
Sources: Minneapolis Area REALTORS® August 2026 Monthly Indicators and Weekly Market Activity Report (week ending September 12, 2026); Minnesota Realtors® August 2026 housing report (released September 16, 2026). All data from NorthstarMLS.