Is Underwood, MN 56586 a buyer’s or seller’s market?

The Underwood housing market right now

In the three months ending August 31, 2026, 15% of homes in Underwood, MN 56586 sold above their list price, the typical home went under contract in 40 days and there were 1.7 months of supply. Under four months of supply means sellers have the edge: expect competition for well-priced homes. That’s based on 13 home sales.

Compared with the same period a year earlier, the share selling over asking fell from 21%, homes sold more slowly (24 days then) and the median sale price fell 27% to $294,872. Overall, Underwood is less competitive than a year ago, which gives buyers more room.

Within Otter Tail County, homes here sell faster than in 61% of the county’s ZIP codes, and sell more often over asking than in 56%.

Nearby, buyers who want less competition could look at Vergas 56587 (0% sold over asking) or Erhard 56534 (0% sold over asking), while Deer Creek 56527 (50% sold over asking) and New York Mills 56567 (38% sold over asking) are even more competitive.