This past week, six homes went under contract here in the Stillwater marketplace, continuing what has been a strong and steady fall season. Buyers still have opportunities with slightly more inventory to choose from, but well-priced homes are moving quickly.
📊 Stillwater Market Snapshot (9/22/25)
•Median List Price: $794,500
•Median Price of New Listings: $725,000
•Price per Sq. Ft.: $252
•Inventory: 58 homes
•Median Days on Market: 49 (avg. 79)
•Market Action Index (MAI): 46 – still a Strong Seller’s Market
The Market Action Index has cooled slightly from last month (48 ➝ 46), but we remain firmly in seller territory. Higher-end homes are taking longer to sell, while well-positioned properties in the mid-range are seeing strong absorption.
🏦 Big News: The Fed Rate Cut
The Federal Reserve lowered the benchmark interest rate by 0.25%, sparking plenty of media buzz. Mortgage lenders had already priced in the cut, which drove rates down to their lowest levels in a couple of years before bouncing back up shortly after the announcement.
👉 Why did rates rise again? Because markets anticipate Fed moves, much of the benefit gets “baked in” ahead of time. We may see another rate cut later this year, which could bring stability—or renewed opportunity—for buyers and sellers alike.
📍 Twin Cities Market Data (Home Free TC)
From 108 accepted offers in the 7-county metro (Sept 1–19, 2025):
🔍 Inspections waived: 17% ↗
🏠 Pre-MLS sales: 6% ↘
💵 16% Cash ↗ • 71% Conventional ↗ • 10% FHA ↘ • 3% VA ↗
📈 Avg. purchase-to-list price: 99.9% ↘
💯 Median purchase-to-list: 100%
💸 Seller help with closing costs: 35% ↗
🛡️ Home warranties: 9% ↗
🏡 Contingent on sale of buyer’s home: 12% ↘
⬆️ Escalation clauses: 2% ↘
📏 Appraisal gap coverage: 5% ↘
🚫 Cancellations: 6% ↗
Takeaway: Buyers are still aggressive—homes are selling at or near asking price—but sellers are helping more with closing costs, showing the balance of today’s fall market.
🎯 What This Means for You
Sellers: Pricing strategically is key. Even in a seller’s market, overpricing risks longer days on market.
Buyers: You may find opportunities with slightly more inventory and the potential for another rate cut this year.
Everyone: This fall is shaping up to be a very typical, very healthy market—active, balanced, and still producing strong results.
📩 Curious what your home is worth in today’s market?
👉 Contact me today for a personalized valuation and strategy session.
About Richard
Richard McDonough is a top-producing real estate broker in Stillwater & Wasington County Minnesota reaching into Western Wisconsin, specializing in luxury homes, waterfront properties, and distinctive estates throughout the St. Croix Valley With more than 33 years of experience, Richard has built a reputation for integrity, innovation, and results, making him one of the most trusted and recognized Realtors in the region.
As a fourth-generation Stillwater resident, Richard combines deep local roots with global reach through his affiliation with Lakes Sotheby’s International Realty. His expertise spans the area’s most sought-after communities — from Stillwater and Lake Elmo to Woodbury, Afton, Marine on St. Croix, Mahtomedi, Grant, and Dellwood — along with select Wisconsin river towns such as Hudson and Prescott.
Richard is known for delivering a “Luxury Plus” marketing approach that goes beyond traditional real estate services. Every listing receives a personalized strategy with professional staging, high-end photography, drone video tours, and targeted digital campaigns across Google, YouTube, Facebook, and Instagram. His ability to tell each home’s unique story consistently attracts qualified buyers and maximizes value for sellers.
In addition to his track record of selling some of the St. Croix Valley’s most prestigious properties, Richard is deeply engaged in his community. He serves on local nonprofit boards, volunteers for events like Home Town for the Holidays, and is dedicated to supporting the Stillwater area’s vibrancy.
Clients describe Richard as experienced, resourceful, and innovative — a true advocate who handles every detail of the buying and selling process with professionalism and care. Whether helping first-time buyers, seasoned investors, or high-net-worth individuals, Richard’s mission is to make every real estate experience seamless, rewarding, and successful.
