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Stillwater Real Estate Market Is Heating Up—But With Nuance

If you’ve been watching the Stillwater, Minnesota real estate market closely, you’re seeing what I’m seeing:  Demand is accelerating ...

  • Richard McDonough
  • March 22nd, 2026
  • 4 min read

If you’ve been watching the Stillwater, Minnesota real estate market closely, you’re seeing what I’m seeing: 

  • Demand is accelerating 
  • Inventory remains tight 
  • But pricing is holding in a strategic plateau

This past week alone:

  • 5 new listings hit the market
  • 2 properties came soon
  • 13 homes went pending
  • Pending sales ranged from $325,000 to $925,000
  • Several homes experienced multiple offer situations

This is not a soft market.

This is a competitive, selective, opportunity-driven market.

 Key Market Metrics – Stillwater MN (55082)

Based on the latest Altos Research data:

  • Median List Price: $1,149,500
  • Market Action Index (MAI): 48 (Strong Seller’s Market)
  • Inventory: 30 homes
  • Median Days on Market: 56
  • Price Per Sq Ft: $278

 What This Means:

The Market Action Index jumped from 41 to 48, signaling increasing buyer demand relative to supply—a key indicator that sellers currently hold leverage.

However, the data also shows: 

Prices are stabilizing, not spiking 

We are in a plateau phase before the next move up

Understanding the Market Shift (This Is the Important Part)

Here’s what most people miss—and where experience matters:

We are in a transitional spring market where:

  • Buyers are active but calculated
  • Sellers are well-positioned but must be strategic
  • Homes that are properly priced + marketed are winning fast

Meanwhile:

  • Price per square foot is rising
  • Inventory is declining
  • Absorption rates are increasing

This combination tells us one thing: 

The market is strengthening beneath the surface

 Interest Rates & Global Uncertainty

We’ve also seen interest rates move back up into the mid-6% range.

Layer that with:

  • Global economic uncertainty
  • Geopolitical tensions
  • Volatility in financial markets

And you get a market that feels… uncertain.

But here’s the reality: 

  • Buyers are still buying 
  • Sellers are still selling 
  • Life events are still driving decisions

Could things shift quickly? Absolutely.

Will they? That’s the million-dollar question.

This is where local expertise + real-time data + negotiation strategy separate average results from exceptional ones.

 Inventory Remains the Silent Driver

With only 30 active homes on the market, supply remains extremely tight.

But inventory alone doesn’t tell the whole story.

As the report highlights:

It’s not just supply—it’s the relationship between supply and demand.

And right now? 

-That relationship strongly favors sellers.

Featured Luxury Listing: 501 Main Street N #500 – The Lofts of Stillwater

This week I’m proud to introduce one of the most compelling luxury offerings in the St. Croix Valley:

The Penthouse at The Lofts of Stillwater

This is a rare opportunity to own a residence that truly defines elevated living in downtown Stillwater.

What makes this property exceptional:

  • Panoramic views of the St. Croix River and historic skyline
  • Expansive glass and architectural design
  • Custom finishes and curated materials throughout
  • Walkable lifestyle to restaurants, boutiques, and riverfront

This is more than a home—it’s a lifestyle asset.

 Final Thoughts: Where the Market Is Headed

Right now, the Stillwater market sits at a powerful intersection: 

  • Strong seller’s market (MAI 48) 
  • Increasing demand 
  • Tight inventory Pricing plateau (for now) 
  • External uncertainty

My Take:

If the Market Action Index continues to rise, we will likely see prices begin their next upward movement.

Until then: 

  • Opportunity exists for both buyers and sellers 
  • But only with the right strategy

Why Work With Richard McDonough

With over 30+ years in the Stillwater and St. Croix Valley market, I combine:

  • Deep local knowledge
  • Luxury marketing expertise
  • Data-driven strategy
  • A global network through Sotheby’s International Realty

This is how you win in today’s market.

Let’s Talk Strategy

Whether you’re buying, selling, or simply watching the market: 

  • I’ll give you real-time insight 
  • Not guesswork 
  • Not headlines Strategy

 

Know Your Home's Worth

 

 

 

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About the author

Richard McDonough

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Richard McDonough

Richard McDonough

124 North Main Street, Stillwater, MN. 55082

124 North Main Street, Stillwater, MN. 55082

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612-819-3518

Message Us:

[email protected]

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