Michigan
Housing Market
The landscape of the housing market in Michigan evolves with shifting home prices and demand. Houzeo’s housing market report tracks constant changes in supply and demand across Michigan. Our report offers real-time insights to help you make informed decisions.
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MigrationMichigan Housing Market Overview
Home prices in Michigan rose 8.3% YoY in January 2025. The consistent increase in median home prices indicates the strength of the housing market. Currently, the median home price in Michigan is $246,400. The number of homes sold declined by 0.33% YoY, indicating a slight slowdown in activity.
You can assess market competitiveness through the median days on the market. Homes in Michigan now stay 47 days on average before going under contract. Mortgage rates also affect the housing demand. Higher mortgage rates at around 7% squeeze buyer demand. All these metrics collectively indicate changes in the pace and affordability of the Michigan housing market.
What Does It Mean for Home Buyers and Sellers?
You can assess market competitiveness through the median days on the market. Homes in Michigan now stay 47 days on average before going under contract. Mortgage rates also affect the housing demand. Higher mortgage rates at around 7% squeeze buyer demand. All these metrics collectively indicate changes in the pace and affordability of the Michigan housing market.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: You get more competition due to fewer median days on the market. But the increase in the number of homes for sale by 9.2% gives you a lot of room to negotiate. However, a fall in mortgage rates can lead to a housing inventory decline, and vice versa.
- If You're a Seller: You can still make profits. With 23.4% of homes sold above the list price and the 8.3% annual price growth, it signals strong demand for Michigan homes.
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Michigan Housing Supply
The Michigan real estate market will see a growth in housing supply as new construction expands. The number of homes in Michigan for sale has increased by 9.2% year over year in January 2025. The total number of available listings now is 27,669. The housing market is balanced with 3 months of supply. Months of supply lower than 6 indicate a seller’s market, while more point towards a buyer’s market.
What Does It Mean for Home Buyers and Sellers?
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: An increasing number of homes for sale means more options for you. The rising inventory will potentially meet the demand and stabilize house prices in Michigan. While 3 months of supply signals faster sales, the rising inventory can benefit you.
- If You're a Seller: You can profit from home sales as the Michigan house prices continue to see growth. The median home price in Michigan has witnessed an 8.3% YoY increase. To attract buyers, price your home right and market it on the Michigan MLS to get the right value for your home.
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Michigan Housing Demand
The percentage of houses in Michigan selling above the list price is a key indicator of housing demand. When more homes sell for more than the list price, it shows strong buyer competition and high demand. A decline in prices suggests less demand and more supply. Tracking this trend helps you gauge market competitiveness.
23.4% of homes in Michigan sold above the list price in January 2025. Price drops increased slightly from last year, with 25.3% of homes selling below list price. The 97.2% sale-to-list price shows price flexibility for both buyers and sellers.
What Does It Mean for Home Buyers and Sellers?
23.4% of homes in Michigan sold above the list price in January 2025. Price drops increased slightly from last year, with 25.3% of homes selling below list price. The 97.2% sale-to-list price shows price flexibility for both buyers and sellers.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: The current rate of 25.3% of homes with price drops suggests potential bidding wars and increased affordability for you. Additionally, the increasing number of newly listed homes will strengthen your negotiating position in the Michigan real estate market.
- If You're a Seller: Given that there’s an increase in the Michigan housing prices and 23.4% of homes are selling above the list price, you can earn profits on home sales. Also, you can market your home strategically to make things work in your favor.
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Seller’s Market
Buyer: Supply exceeds demand, and homes stay listed on the market for longer, pushing sellers to offer concessions.
Is It a Buyer’s or Seller’s Market in Michigan?
As of January 2025, home buyers in Michigan have more leverage due to increased housing inventory and price drops. However, mortgage rates of 7% can restrict buying power. With an increase in new constructions and a 3.3% rise in new home listings, you can fulfill your dream of homeownership.
On the other hand, the increase in Michigan's median home price and a supply of just 3 months can appeal to sellers looking to list their homes. You can list your home on the Michigan MLS and make a speedy sale.
Michigan Housing Market Insights
The Michigan housing market shows steady growth despite increasing interest rates. The median home price in Michigan ($246,400) is lower than the national median ($418,478). This indicates that Michigan is more affordable compared to real estate in the US in general. Homes in Michigan sell faster and housing in Michigan is hence getting more expensive.
While the current housing market in Michigan leans slightly toward buyers, some areas, like Bay City and Norton Shores, are fiercely competitive. Bay City homes, for example, sell in about 18 days, often above list price. Such homes generally sell for about 3% above their listing price. Michigan housing market forecast for 2025 forecasts suggest continued regional growth and the balanced market allows both buyers and sellers to strategize.
While the current housing market in Michigan leans slightly toward buyers, some areas, like Bay City and Norton Shores, are fiercely competitive. Bay City homes, for example, sell in about 18 days, often above list price. Such homes generally sell for about 3% above their listing price. Michigan housing market forecast for 2025 forecasts suggest continued regional growth and the balanced market allows both buyers and sellers to strategize.
Nationwide Migration Trends
Michigan experienced a net loss of about 7,656 residents to other states between 2023 and 2024, ranking it 10th for outbound migration. Factors like limited job opportunities, high taxes, and harsh winters contribute to this trend.
However, Michigan also offers a lower cost of living, at 92.7% of the national average, making it 7.3% more affordable. This affordability, combined with attractions like the Great Lakes, cultural heritage, and universities, can draw new residents to the state.
However, Michigan also offers a lower cost of living, at 92.7% of the national average, making it 7.3% more affordable. This affordability, combined with attractions like the Great Lakes, cultural heritage, and universities, can draw new residents to the state.
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Frequently Asked Questions
How is the Michigan real estate market?
Michigan's housing market currently sits in a delicate balance, though leaning slightly towards buyers. Rising prices and relatively high mortgage rates present challenges for buyers. However, increasing inventory and more frequent price reductions suggest a shift in their favor.
What are the cheapest cities in Michigan?
Flint, Detroit, and Albion are some of the cheapest places to live in Michigan. Flint boasts a median home sale price of just $37,750, a significant 33.8% decrease year-over-year. Detroit's median home price is $90,000, while Albion's sits at $107,450.
Should I wait for some time before buying a property in Michigan?
You can buy a house in Michigan now. While the average price of a house in Michigan is generally rising, the current market is balanced with a slight tilt toward buyers. Alternatively, you can wait and see if the housing market in Michigan shifts further in favor of buyers.
How can I list my home for sale in Michigan?
You can list your home for sale with a Flat Fee MLS Michigan listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀
What is the cost of living in Michigan?
The cost of living index in Michigan is 92.7, which is 7.3% less than the national average. A median home costs $246,400 in Michigan, 41.1% lower than the national median. You can find out more with our free Michigan cost of living calculator.
What is the average mortgage rate for buyers in Michigan?
The average mortgage rate for buyers in Michigan fluctuates between 6% to 7.25%. Make sure to check your credit score and current mortgage rates before you apply for a mortgage.
Is now a good time for selling or buying a home in Michigan?
Housing market in Michigan is currently a balanced market. This means buyers as well as sellers can benefit from the current situation. The 9.2% rise in the number of homes for sale and a 2.5% rise in the number of homes sold with price drops works in favor of home buyers. Nevertheless, high mortgage rates of 6.82% and an 8.3% rise in the media home sale price favors home sellers.
What is the average cost of a home in Michigan?
The average price to buy a house in Michigan depends on location, size, and market conditions. It typically ranges from $80,000 to $350,000 for single-family homes. If you want a custom house for yourself, the cost to build a house in Michigan ranges between $200k to $400k excluding land.
When will house prices drop in Michigan?
Michigan home prices aren’t dropping on a large scale. In fact, the average house price in Michigan increased by 8.3% YoY in January 2025. However, the increased number of homes for sale in Michigan may bring down prices to a moderate level in overvalued areas.
Is the housing market going to crash in Michigan?
A housing market crash in Michigan is unlikely. Home prices remain above pre-Covid levels, and high inventory suggests continued growth through 2025.
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