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COTTONWOOD, MN 56229

Real Estate Market Report  ·  Lyon County
Balanced Market
January 2026  ·  Source: Realtor.com

Market Overview

Active Listings
2
⇩ 50% vs 4 last year
Pending
1
50% pending ratio
Median Price
$255,000
⇧ 39.7% vs $182,475 last year
Average Price
$255,000
⇩ 2.4% vs $261,363 last year
Days on Market
143
⇧ 186% vs 50 days last year

Market Context

Population: 1,743  ·  Density: 6.6/mi²  ·  Median household income: $93,194

Typical home value: $188,771  ·  Homeownership: 80.1%

Market Analysis

Data as of January 2026. Source: Realtor.com.

The COTTONWOOD, MN real estate market (56229) currently shows 2 active listings, with 1 pending sales. Homes are averaging 143 days on the market before going under contract.

Inventory has tightened compared to last year, with 2 fewer active listings — creating more competition among buyers.

Homes are taking longer to sell, averaging 143 days on market compared to 50 days last year.

The median listing price has risen 39.7% year-over-year, from $182,475 to $255,000.

Whether you are buying or selling in COTTONWOOD, MN, SELL123.com can help you save significantly on commission — typically 2% compared to traditional 5% broker fees. Call (240) SELL-123 for a free consultation.

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Market Trends

Inventory & Days on Market

Year over Year
  • Listings: 2 this year vs 4 last year
  • Days on market: 143 now vs 50 last year

Median & Average Pricing

Year over Year
  • Median: $255,000 (+39.7% YoY)
  • Average: $255,000 (-2.4% YoY)

12-Month Price Trend

Median & Average
  • Median and average listing prices over the past 12 months

12-Month Inventory Trend

Active & Pending
  • Active and pending listing counts over the past 12 months

Historical Trend Charts

Median Price
Average Price
Days on Market
Total Listings
Pending Listings
Active Listings
New Listings

Nearby Real Estate Markets

Median Price Legend:
< $250K
$250K–$500K
$500K–$1M
$1M–$2M
> $2M
25 Nearby Zip Code Markets within 28.1 miles — 73 listings ($19,369,738 combined market value)
Zip City / State Distance Listings Market Value Median $ Average $
56229Cottonwood, MN 562290.0 mi2$510,000$255,000$255,000
56258Marshall, MN 5625810.7 mi16$4,141,520$190,000$258,845
56223Clarkfield, MN 5622312.5 mi6$776,160$80,000$129,360
56237Echo, MN 5623714.3 mi1$238,000$238,000$238,000
56241Granite Falls, MN 5624115.7 mi11$2,981,418$267,200$271,038
56218Boyd, MN 5621819.3 mi3$792,000$264,000$264,000
56255Lucan, MN 5625520.5 mi2$427,300$213,650$213,650
56285Sacred Heart, MN 5628522.8 mi5$1,157,500$177,000$231,500
56175Tracy, MN 5617523.7 mi13$2,812,940$190,500$216,380
56293Wabasso, MN 5629325.7 mi2$212,000$106,000$106,000
56132Garvin, MN 5613227.1 mi5$3,199,900$735,000$639,980
56115Balaton, MN 5611527.6 mi6$1,986,000$325,000$331,000
56260Maynard, MN 5626028.1 mi1$135,000$135,000$135,000

Frequently Asked Questions

How many homes are for sale in COTTONWOOD, MN 56229?

As of January 2026, there are 2 active listings in COTTONWOOD, MN (zip code 56229), compared to 4 the prior year.

What is the median home price in COTTONWOOD, MN 56229?

The median listing price in COTTONWOOD, MN 56229 is $255,000 as of January 2026, a 39.7% increase from $182,475 the prior year.

How long do homes stay on the market in COTTONWOOD, MN?

Homes in COTTONWOOD, MN 56229 spend an average of 143 days on the market before going under contract, compared to 50 days the prior year.

Is it a seller's or buyer's market in COTTONWOOD, MN 56229?

Based on current inventory and days-on-market data as of January 2026, COTTONWOOD, MN 56229 is currently a Balanced Market. Inventory has tightened compared to last year, with 2 fewer active listings — creating more competition among buyers. Homes are taking longer to sell, averaging 143 days on market compared to 50 days last year.

How much can I save on real estate commission in COTTONWOOD, MN?

With SELL123.com's maximum 3% commission, sellers in COTTONWOOD, MN 56229 save an estimated $5,100 compared to a typical 5% commission on the median listing price of $255,000. Our fee structure: 1% listing + 2% selling broker — no additional buyer or seller fees. Call (240) SELL-123 or email info@SELL123.com for a free consultation.