Minnesota Realtors discuss marketplace normalizing across the state

(FOX 9) - Minnesota real estate experts say from what they are seeing in the local marketplace, there is no need to panic.

Market normalizing

What we know:

According to real estate analytics firm ATTOM’s U.S. Home Equity & Underwater report, Minnesota led other states in the second quarter of 2026 with 12.1% of homes "seriously underwater."

The ATTOM team also shows Minnesota saw the highest annual increase in rates of seriously underwater homes, up from 2.6% the year before.

ATTOM defines a "seriously underwater" home as a property owner owing at least 25% more than the estimated market value of the property.

What they're saying:

Minnesota real estate experts say what they are seeing in the local marketplace gives no reason to sound the alarm.

Wendy Uzelac, president of Minnesota Realtors says some factors at play in the marketplace is home prices may be leveling out after a hot streak during the pandemic.

"Back to what it was a little bit before the craziness of the pandemic years where everybody was moving around and houses had so many multiple offers," said Uzelac.

Uzelac also says even if home prices may fall in some areas, looking at the long-term outlook may give a better idea of potential impact.

"We’re also seeing that these days, those borrowers that were able to purchase with the low-down payment mortgage products are really well-qualified. Being slightly behind in your equity position doesn’t exactly equal not being able to pay," said Uzelac.

Uzelac says the Minnesota Realtors team relies on different metrics that paint a more accurate picture of the health of the marketplace.

"We go by the data that is proven, meaning homes that have closed, sales that have happened," said Uzelac.

She says foreclosure data shows Minnesota is in the middle of the pack.

"When people start talking about being upside-down in a mortgage in a short-term, they’re really missing the big picture. I think people need to keep in mind the longer-term effect of investing in your own home," said Uzelac.

What you can do:

Uzelac says if you do want to buy or sell in Minnesota, a local professional realtor will be your best guide to what is going on in the marketplace that varies by region and neighborhood.

The Source: Minnesota Realtors, ATTOM