What's Driving Home Prices in Stillwater, MN?
The Stillwater real estate market is heating up, and many are wondering: what exactly is pushing home prices higher in this historic and scenic Minnesota city? Whether you're a potential buyer, seller, or investor, understanding the forces behind these price trends is key to making smart real estate decisions.
1. A Strong Seller’s Market
As of May 2025, Stillwater's median home price sits at approximately $502,000—up nearly 12% from the same time last year. Some reports even show prices hovering around $540,000, with homes selling in just 19 days on average. This strong competition among buyers continues to fuel rapid price appreciation.
2. Low Inventory, High Demand
Despite a modest increase in listings, Stillwater remains a low-inventory market. In May, there were just 194 active listings. In April, that number was only 42 for single-family homes. When demand exceeds supply, prices go up. Buyers are facing multiple-offer situations, especially for well-maintained or move-in ready homes.
3. Lifestyle Appeal
Stillwater has a lot going for it—historic charm, a lively downtown along the St. Croix River, great dining, and scenic views. It’s no surprise that buyers are drawn to this lifestyle. Many are relocating from busier urban areas, seeking space, character, and community.
4. Infrastructure Improvements
A $40 million redesign of the Highway 36 intersection, scheduled to begin in Spring 2026, promises smoother commutes and better connectivity to the Twin Cities. This type of infrastructure investment typically boosts property values by making a community more accessible.
5. Strong Demographics & Economic Trends
Stillwater boasts a median household income of around $92,000, with nearly half of residents holding bachelor’s degrees. This educated, affluent buyer base supports a strong and steady housing market. Meanwhile, regional trends show continued momentum across the Twin Cities metro, with pending sales and new listings both on the rise.
6. Segment-Specific Insights
Not all price increases are equal. Three-bedroom homes saw the biggest jump (up nearly 18%), while four-bedroom homes also rose. Interestingly, larger estates and one-bedroom properties have seen flatter growth or slight declines. In downtown Stillwater, the median price has hit $588,000, with homes taking longer to sell compared to the broader market.
What Does This Mean for You?
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Sellers: With limited competition, now may be the ideal time to list. Homes are moving quickly and often sell for top dollar.
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Buyers: Be ready to move fast. Get pre-approved, understand your budget, and be prepared for multiple-offer scenarios.
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Investors: Stillwater’s blend of charm, growth, and infrastructure investment presents strong long-term potential.
Final Thoughts
Home prices in Stillwater are being driven by classic market fundamentals: limited supply, strong demand, desirable location, and upcoming infrastructure upgrades. Whether you're entering the market or planning your next move, it’s essential to stay informed. Ready to talk strategy? Let’s connect and navigate the Stillwater market together.
