Northwest Michigan’s housing market is finding its balance. Inventory is gradually recovering, while the pandemic-fueled buyer frenzy continues to settle. Heading into February, available inventory was up 22% compared to last year and 51% compared to 2023.
Although sales have gradually declined each year since 2020, there are still plenty of buyers waiting to compete for a chance to snatch up the best listings. Buyer demand and competition manifest themselves in prices which continue to rise. The average sale price for waterfront homes rose 12% last year and 77% since 2020. Prices of both non-waterfront homes and condos rose 7% last year and 51% since 2020.
New listings will gradually increase in February and March before surging in April and May, peaking by early summer. Pending sales will follow suit, typically peaking in July or August, with closed sales lagging by about a month. Closed sales always follow about a month behind the pendings.
Sale and Price Expectations
Despite improving inventory, high-quality listings remain scarce. Expect fierce competition for top-tier properties, driving prices higher. However, homes in average or below-average condition will face price reductions and longer market times.
With inventory improving, sales should remain steady, and prices will continue rising—though at a more moderate pace than in 2024. Sellers will need to be strategic, ensuring their homes are well-priced and in top condition to attract buyers.
