Is Cottonwood, MN 56229 a buyer’s or seller’s market?

The Cottonwood housing market right now

In the three months ending August 31, 2026, 33% of homes in Cottonwood, MN 56229 sold above their list price, the typical home went under contract in 10 days and there were 0.5 months of supply. Under four months of supply means sellers have the edge: expect competition for well-priced homes. With only 6 sales, these figures can swing a lot from month to month.

Compared with the same period a year earlier, the share selling over asking rose from 0%, homes sold faster (45 days then) and the median sale price rose 15% to $201,913. Overall, Cottonwood is more competitive than a year ago, so tougher for buyers.

Within Lyon County, homes here sell faster than in any other ZIP code in the county, and sell less often over asking than in 67%.

Nearby, buyers who want less competition could look at Ghent 56239 (0% sold over asking) or Tracy 56175 (13% sold over asking), while Balaton 56115 (50% sold over asking) and Garvin 56132 (50% sold over asking) are even more competitive.