Market Overview
A Market That Rewards Preparation — and Punishes Hesitation
Good morning, Stillwater. If you've been watching the headlines and wondering whether the local real estate market has softened, let me give you the ground-level view that only 33 years of practicing right here in the 55082 zip code can provide: this market is still very much tilted in the seller's favor, and the numbers this week make that crystal clear.
We saw 16 new listings enter the market this week — a healthy surge of fresh inventory that included 3 coming soon properties that haven't even hit active status yet. Now here's what tells the real story: of those 16 new listings, 6 already have accepted offers . Some are subject to home inspections, but make no mistake — those sellers didn't wait long. That's a 37.5% immediate absorption rate on brand-new inventory. In a market where national headlines are full of doom and gloom, that number should get your attention.
Beyond the new listings, we saw 11 homes move to pending status this past week. Eleven. That's not a trickle — that's a market that is actively transacting. When you layer that activity against a total inventory of just 55 homes, you begin to understand why the Market Action Index remains firmly lodged at 59 — deep in strong seller's market territory .
"In 33 years of serving this community, I've learned to read Stillwater's market on its own terms — not through the lens of national averages. Right now, this zip code is sending a clear signal to buyers: come prepared, or come in second place."
— Richard McDonough, Lakes Sotheby's International RealtyMarket Action Index
MAI 59: What It Means in Plain English
The Market Action Index compares the rate of sales to available inventory on a scale of 0 to 100. A score of 30 or below signals a buyer's market; above 40 favors sellers. At 59 , we are not just in seller's market territory — we're in strong seller's market territory, and that number has actually risen since last month's reading of 53.
Yes, inventory has been climbing and prices have shown some softening from their peak levels. That's the nuance national headlines miss. We're not in the frenzied sprint of 2021–2022, but we are absolutely in an environment where well-priced, well-presented homes attract multiple offers and move quickly. The bottom quartile of the market — homes in the 75,000 range — is seeing median days on market of just 3 days . Three days. That segment is on fire.
The mid-market (62,500 range) is also transacting well, with a median DOM of 3 days and 7 new listings absorbed. Even the luxury segment above million, while taking longer at 49 days, is seeing activity. This is a functioning, active market across all price tiers.
Market Segments at a Glance — June 7, 2026
| Median Price | Sq. Ft. | Beds / Bath | New Listings | Absorbed | Median DOM |
|---|---|---|---|---|---|
| ,024,290 | 5,712 | 5 bd / 4.5 ba | 0 | 2 | 49 days |
| ,122,000 | 4,425 | 4 bd / 3.5 ba | 2 | 1 | 24 days |
| 62,500 | 2,619 | 3 bd / 3 ba | 7 | 3 | 3 days |
| 75,000 | 1,726 | 3 bd / 2 ba | 4 | 4 | 3 days |
Competitive Landscape
Multiple Offers Are Real — and They're Happening Now
I want to be direct with buyers reading this: I am personally seeing multiple-offer situations on homes in this market right now. This is not speculation or a scare tactic — it is the reality of showing homes in Stillwater 55082 in June of 2026. When a well-priced home hits the market in a desirable neighborhood, it attracts attention quickly, and motivated buyers are writing competitive offers.
The fact that 6 of this week's 16 new listings already have accepted offers is direct evidence of this dynamic. Sellers aren't sitting around waiting — and neither are the best-positioned buyers. The buyers who lose out are almost always the ones who weren't ready: they hadn't secured their pre-approval, they needed more time to get their ducks in a row, or they hesitated on a showing. In a market moving at this pace, hesitation is expensive.
For sellers, this is equally instructive. Homes that are priced accurately for today's market — not aspirationally, but strategically — are the ones attracting the multiple-offer scenarios. Overpriced homes are sitting and eventually seeing price reductions. The 18% of listings that have seen price decreases tell that story clearly. Proper pricing from day one, combined with exceptional presentation, is the formula that wins.
Critical Advice for Buyers
Pre-Approval Isn't Optional — It's Your Entry Ticket
If you are serious about buying a home in Stillwater right now, the single most important step you can take before you do anything else is to get fully pre-approved by a reputable lender. Not pre-qualified — pre-approved. There is a meaningful difference, and listing agents know it.
Pre-approval means a lender has verified your income, assets, and credit. It means you can make an offer with confidence and credibility. It means sellers take you seriously. In a market where competing offers can arrive within hours of a listing going live, walking in without pre-approval is like showing up to the starting line after the race has already begun.
I work with several outstanding local lenders who understand the nuances of financing in this price range — including jumbo loan territory for our luxury segment. Reach out to me directly and I'll connect you with the right people to get this done quickly and correctly. Then, and only then, are you truly ready to compete.
Local Perspective
What Four Generations Tell Me About This Market
My family has been part of this community for four generations. I've watched Stillwater evolve through market cycles, economic booms and contractions, and every iteration of the real estate landscape this zip code has seen over more than three decades. What I know from that depth of experience is this: Stillwater is not a commodity market . It is a destination.
The St. Croix River, the historic downtown, the character of the neighborhoods, the school community — these are not features you find replicated anywhere else in the Twin Cities metro. They create a floor of sustained demand that insulates this market from some of the volatility that national headlines describe. When people choose Stillwater, they are choosing a way of life, and that emotional and lifestyle connection drives transactions even when interest rates are elevated.
I tell my clients: don't wait for a "perfect" market. The perfect market for buyers who are ready is the market that is happening right now — before conditions shift again. We are in a window where inventory is fuller than it was 18 months ago, prices have softened slightly from peak levels, and motivated sellers are still at the table. That combination won't last indefinitely.
Whether you are thinking about selling and want to understand exactly where your home fits in today's market, or you're a buyer ready to make your move into one of the most desirable communities in Minnesota, I am here and I am the right person to guide you through it.
Let's Talk About Your Move
Four generations of local knowledge. 33+ years of real estate expertise. One advisor who knows this market better than anyone.
Call 612-819-3518Email Richard
Richard McDonough · Senior Global Real Estate Advisor · Lakes Sotheby's International Realty
Experienced · Resourceful · Innovative