Buyers in the Duluth area have more to choose from this fall. September numbers for the Arrowhead show more listings, slower pending sales and a lower monthly median price. Here is what the data says.
The numbers for September 2026
Minnesota REALTORS® reports that the Arrowhead Region (Region 3, which includes Duluth) had a median sales price of $250,000 in September, down 13.4% from $288,750 a year earlier. One month can swing a lot in a smaller market, and the year-to-date median tells a calmer story: $274,900, up 1.9%.
Inside the city of Duluth, prices are higher than the regional median. Redfin puts the median sale price at about $296,000 over the three months ending in September, and Realtor.com also lists a $296,000 median sold price for Duluth.
Supply is growing. New listings in the Arrowhead rose 13.3% to 529, and months of supply jumped to 5.4 from 4.2. Pending sales fell 20.3% to 321, while closed sales rose 6.1% to 432. The median time on market rose to 56 days from 48. Sellers received 94.4% of their original list price on average, down from 95.8%.
Mortgage rates this week
On the financing side, Freddie Mac’s Primary Mortgage Market Survey for the week of October 15, 2026 put the average 30-year fixed rate at 7.40%, unchanged from the week before, and the 15-year fixed at 6.71%, down from 6.73%. A year ago the same survey showed 6.27% and 5.52%. The St. Louis Fed’s FRED database lists the same weekly readings. The survey assumes a conventional purchase loan with 20% down and excellent credit, so your own quote may be higher or lower.
What it means for buyers
With more than five months of supply, the Arrowhead is leaning toward buyers. You may have time to compare homes, make an offer with contingencies, and negotiate on price or repairs.
- Look at the drop in pending sales. It suggests fewer buyers are competing right now.
- Budget for older-home needs common in Duluth, like roofs, foundations and heating systems, and get a thorough inspection.
- Check winter costs: heating bills, snow removal and steep driveways all affect your monthly budget.
- Compare city and outlying-area prices; the regional median is well below the city median.
What it means for sellers
- Price for the market you are in, not the one from last year. Buyers can see how long homes are sitting.
- Make the home easy to say yes to: fix known issues before listing or price them in.
- Consider offering a credit toward closing costs or a rate buydown to help payment-conscious buyers.
- Listing before the snow helps photos and showings.
The bottom line
The Duluth and Arrowhead market is softening, with more homes for sale and slower contract activity. Year-to-date prices are still slightly up, so this is a shift, not a slump. Buyers have more leverage than they have had in a while. Sellers who price and prepare well can still sell.
Photo: “Duluth Aerial Lift Bridge-aerial, August 2024” by Bspor.88, Wikimedia Commons, CC0 (public domain)
Sources: Minnesota REALTORS® Local Market Updates, September 2026 (via rasminfo.com and stcloudrealtors.com) (Region 3, Arrowhead); Redfin Duluth Housing Market (September 2026); Realtor.com Duluth market data (September 2026); Freddie Mac PMMS (Oct. 15, 2026); FRED series MORTGAGE30US and MORTGAGE15US.
Please confirm details yourself.
Sponsored by Dan DeMark, REALTOR® | LPT Realty | goldenrulerealestateservices.com
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This article is general information only and is not financial, legal or tax advice. Talk with a licensed lender, attorney or tax professional about your own situation.
