The holidays are behind us. The New Year is underway. And across the Twin Cities, one word continues to shape the real estate conversation:uncertainty.
With uncertainty comes caution ā and weāre seeing a very realĀ āwait and seeāĀ mindset emerge among buyers and sellers alike. Thatās why one phrase Iāve been repeating lately feels especially relevant right now:
Time will tell.
And as we step into January, the early market data is already telling an important story.
š What Weāre Seeing Since January 1, 2026
Since the start of the year:
- 9 new listingsĀ have come on the market
- 6 homes are already pending / under contract
- Interest rates are at a three-year low
- Market Action Index has dropped to 42, continuing a steady decline since November
- Inventory remainsĀ extremely limited
This is a market whereĀ momentum still exists, but confidence is selective. Buyers are cautious, yet motivated. Sellers are watching closely ā and for many, this moment representsĀ a strategic window.
What This Means for Sellers
Even with uncertainty in the headlines, one fact hasnāt changed:
šĀ We are still short on inventory.
Homes that are priced correctly and positioned well are attracting attention ā and going under contract. With interest rates improving and fewer homes available than demand suggests,Ā serious buyers are actively looking.
If youāve been thinking about selling ā but waiting for the āright timeā ā this may be it. Once spring inventory increases, competition will follow.
Timing matters. Strategy matters. Data matters.
This Newly Listed Stillwater Home Checks Every Box ā Donāt Miss It
š”Ā Welcome to Nottingham Village in scenic Stillwater
One-level livingĀ ļ»æāļø
No HOAĀ āļø
Nearly new (2020)Ā āļø
From custom built-ins and a cozy gas fireplace to a dream garage and pet-friendly touches, this home checks all the boxes for comfort and convenience.ļ»æ
āØ Bonus: finished lower level + custom storm/panic roomļ»æ
š©Ā Message me to schedule a private showing or learn more.
āļø Stillwater This Weekend: World Snow Sculpting Championship
Beyond the numbers, this weekend is a perfect reminder of why people love living here.
The World Snow Sculpting ChampionshipĀ returns toĀ Downtown Stillwater, withĀ 16 international teamsĀ transforming massive snow blocks into incredible works of art.
š Lowell Park | St. Croix Riverfront
š January 13ā25, 2026
Itās events like this that highlight theĀ lifestyle, community, and cultureĀ that continue to drive long-term demand in the Stillwater and St. Croix Valley markets.
š Final Thought
Yes ā thereās uncertainty.
Yes ā buyers are cautious.
But opportunity still exists for those who understand the market and act with intention.
Time will tell.
And right now, the data is saying:Ā pay attention.
If youāre curious what this means forĀ your homeās valueĀ or your next move, Iām happy to talk through the numbers with you.
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 Sothebyās International Realty. His expertise spans the areaās most sought-after communities ā from Stillwater and Lake Elmo to Woodbury, Afton, Marine on St. Croix, Mahtomedi, Grant, and Dellwood ā along with select Wisconsin river towns such as Hudson and Prescott.
Richard is known for delivering a āLuxury Plusā 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 homeās unique story consistently attracts qualified buyers and maximizes value for sellers.
In addition to his track record of selling some of the St. Croix Valleyās 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 areaās vibrancy.
Clients describe Richard as experienced, resourceful, and innovative ā 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, Richardās mission is to make every real estate experience seamless, rewarding, and successful.
