Michigan Real Estate Market – May 2025 Overview Statewide Trends
- Home Values
The average home value in Michigan is around $257,000, showing steady growth of over 3% in the past year. - Market Activity
Homes are selling quickly, typically going under contract in less than two weeks. - Inventory
The number of homes for sale has increased by roughly 9% year-over-year, giving buyers slightly more options. - Buyer vs. Seller Market
The market is fairly balanced. While some homes are still selling above asking price, others are seeing price drops. - Mortgage Rates
Rates are hovering around 7%, impacting affordability and slowing down some buyer activity.
- Building a new home in Detroit is significantly more expensive than buying an existing one.
- The city is investing in both single-family and multifamily development to meet growing demand.
- Home prices in West Michigan have risen by about 5%.
- More homes are being listed, and they are taking slightly longer to sell—an indication of a cooling but still active market.
- Prices are expected to continue rising, with projections between 3% and 5% growth this year.
- Inventory remains tight, keeping demand strong.
- The local housing stock is dominated by single-family homes, with a significant number used seasonally.
- Development is challenged by high construction costs, limited rental options, and zoning constraints.
- New construction projects are underway to add affordable housing, particularly in underserved communities where demand significantly outpaces supply.
Michigan's real estate market continues to grow, with regional differences in pricing, inventory, and development progress. While some areas are struggling with high building costs and limited supply, others are seeing increased inventory and moderate price appreciation. The market remains relatively balanced, offering opportunities for both buyers and sellers in 2025.