Michigan’s Housing Market Today 9/23/2025
Michigan’s Housing Market Today
Michigan’s real‑estate market hasn’t crashed post‑pandemic; it’s settled into a mosaic of conditions. Statewide, the median sale price was about $287,000 in August 2025—up 5.9 % from a year earlier redfin.com. The number of homes sold declined 1.2 %, and homes stayed on the market for a median of 29 days redfin.com. Inventory has climbed to nearly 42,000 homes for sale, an 8.2 % increase year over year redfin.com.
Mortgage rates have hovered around 6.5 % to 7 %, even after the Federal Reserve’s September rate cut. This combination of moderate price growth and rising inventory means demand remains solid, but bidding wars aren’t as intense as during the pandemic boom.
Buyers’ Market vs. Sellers’ Market
In a sellers’ market, there are more buyers than homes, so sellers can demand higher prices and offers usually include fewer concessions. In a buyers’ market, the reverse is true, and buyers have more leverage to negotiate. Michigan currently has a mix of both. Here’s a quick breakdown of key areas:
Detroit: Median sale price around $115,000; it’s generally a buyers’ market. Prices are low but growing quickly—about 17 % year over year redfin.com. Ample inventory gives buyers choices, but demand is heating up.
Grand Rapids: Median sale price roughly $305,000; this is a sellers’ market. Homes sell in about nine days, one of the fastest in the country housingwire.com, and prices are up 8.2 % year over year redfin.com.
Kalamazoo: Median sale price around $205,000; also a sellers’ market. Prices rose 6.8 % and homes now take about 18 days to sell redfin.com.
Traverse City: Median value roughly $437,000; the market is relatively neutral. Vacation‑home demand keeps prices stable, with values up about 2–3 % over the past year.
Manistee County: Median price around $297,000; the market is mixed because small sales volumes can cause big swings. A few sales can dramatically shift the median.
Cadillac: Median price about $282,000; this market is volatile. A couple of high‑end sales doubled the median price, but only 14 homes sold recently.
Charlevoix County: Median price roughly $397,000; the market is neutral. After pandemic‑era surges, prices grew just 1.5 % year over year.
Petoskey: Median price about $457,000; the market is cooling. Prices dipped 3.4 % year over year, and the luxury segment is more sensitive to rising rates.
Hottest and Most Affordable Spots
Detroit remains Michigan’s most affordable metro area, with median sale prices around $115,000 redfin.com. Because prices are low relative to income, buyers can find bargains—yet values are rising quickly.
Grand Rapids and Kalamazoo are among the hottest markets. Homes in Grand Rapids sell in roughly nine days—about 83 % faster than the national average—and prices have risen 8.2 % in the past year housingwire.comredfin.com. The typical Michigan home now sells in 23.8 days, about 63 % faster than the national norm housingwire.com.
By contrast, northern vacation towns like Traverse City, Charlevoix and Petoskey have cooled. The huge price gains of 2020–2022 have flattened or even turned slightly negative zillow.com, giving buyers more bargaining power for lakefront or second homes.
Waves Moving North
Market shifts tend to move like waves across the state. Detroit, with its combination of low prices and renewed urban appeal, is seeing the fastest appreciation. Grand Rapids and Kalamazoo follow, supported by job growth and tight supply. As this “wave” travels north, high prices and an excess of vacation homes dampen demand. Because northern markets are smaller, a handful of sales can dramatically influence statistics.
Takeaways for Buyers and Sellers
Understanding your local market’s dynamics helps set realistic expectations:
In seller‑dominant markets like Grand Rapids, price your home competitively and be prepared for multiple offers quickly.
In buyer‑friendly areas like Detroit or Petoskey, it’s reasonable to negotiate—but recognize that well‑priced homes can still attract multiple bids.
Across Michigan, the market remains balanced enough that both buyers and sellers can succeed when they stay informed and flexible.
Keeping an eye on current data—such as median prices, days on market and inventory—will help you make smarter decisions and navigate Michigan’s shifting real‑estate landscape with confidence.
