Stillwater, Minnesota, offers a unique blend of historic charm and modern amenities, making it a desirable location for homebuyers and investors alike. Understanding the current real estate market trends is essential for making informed decisions.
Current Market Overview
As of May 2026, the median sale price for homes in Stillwater is approximately $426,000, reflecting a 10.4% decrease compared to the same period last year. Despite this decline, the market remains competitive, with homes typically selling after 20 days on the market, a slight improvement from 21 days the previous year. Notably, 56.3% of homes sold above the listing price, indicating strong buyer interest.
Home Values and Inventory
The average home value in Stillwater stands at $452,749, marking a 3.9% increase over the past year. The market has 51 active listings, with 27 new properties introduced as of May 31, 2026. This limited inventory contributes to the competitive nature of the market, often resulting in multiple offers for well-priced homes.
Rental Market Insights
For those considering renting, the median rent in Stillwater is $2,550 per month. This figure represents a 5.56% decrease year-over-year, suggesting a slight easing in rental prices. However, with only nine rental properties available, the rental market remains tight, emphasizing the importance of prompt action for prospective tenants.
Neighborhood Highlights
Downtown Stillwater offers a vibrant community with a mix of historic and modern homes. The median sale price in this area is $400,000, a 31.8% decrease from the previous year. Homes here sell quickly, averaging 14 days on the market, down from 49 days last year, indicating sustained demand for properties in this neighborhood.
Market Forecast and Considerations
Looking ahead, the Stillwater housing market is expected to stabilize, with modest growth projected as mortgage rates ease and inventory conditions improve. Home prices are forecasted to rise by 2-4% in 2026, reflecting a return to more normalized market conditions. Affordability is improving as wage growth outpaces home price appreciation, and strong homeowner equity supports price stability.
For potential buyers, the current market offers opportunities to purchase homes at adjusted prices, while sellers can benefit from the competitive environment by pricing their properties strategically. Staying informed about local market trends and working with experienced real estate professionals can provide valuable guidance in navigating Stillwater’s dynamic housing market.