South Metro MN Real Estate Market Report

July 2026 | Dakota & Scott County

July's numbers show an active South Metro housing market, but Dakota and Scott County are telling two slightly different stories. Inventory continues to improve, home values remain resilient, and buyers are gaining more choices as we move through the summer market.

Dakota County – July 2026 vs. July 2025

What This Means:
Dakota County had a busy July. More homes came onto the market, but buyer activity kept pace: pending sales increased 7.6% and closed sales jumped 14% compared with last July. The median sales price also increased 1.2% to $415,000.

For buyers, the 18.5% increase in months supply means there are more options to consider. For sellers, demand hasn't disappeared—but with more listings competing for attention, pricing and presentation matter.

Scott County – July 2026 vs. July 2025

What This Means:
Scott County's median sales price increased 2% to $425,000, and homes actually sold slightly faster than they did last July. However, pending sales declined 18.6%, while the percentage of original list price received fell to 98%.

That combination is worth watching. Buyers have more inventory available and may find additional negotiating opportunities, while sellers should pay close attention to current competition and recent comparable sales when setting a price.

What Does the July Market Mean for Buyers & Sellers?

For Buyers

• More inventory in Dakota County: Months supply increased 18.5%, giving buyers more homes to compare.
• Negotiation opportunities are emerging: Homes sold for 99% of original list price in Dakota County and 98% in Scott County.
• Demand remains location-specific: Dakota County pending sales increased while Scott County pending sales declined significantly.

For Sellers

• Home values remain resilient: Median sales prices increased year over year in both counties.
• Dakota County demand remains active: Closed sales increased 14% despite substantially more inventory.
• Pricing matters: More available inventory means buyers can compare competing homes more carefully.

Bottom Line: The South Metro Market Is Becoming More Balanced

July's numbers don't point to one simple "buyer" or "seller" market across the South Metro. Instead, we're seeing a market become more nuanced.

Dakota County saw significantly more listings while also posting increases in pending and closed sales. Scott County maintained year-over-year price growth and slightly faster sales, but the decline in pending activity suggests buyers are moving more selectively.

For buyers, more inventory can create opportunities. For sellers, strong results are still possible, but accurate pricing, preparation, and marketing are increasingly important.

*Price-per-square-foot figures reflect the latest county-level Realtor.com market data available at the time of publication and may not correspond to the same reporting period as the Minnesota REALTORS® July statistics.