Michigan’s real estate market is experiencing steady growth in home prices, increased inventory levels, and varied regional dynamics. Here’s a comprehensive overview:
🏠 Statewide Market Overview
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Median Home Price: In April 2025, the median sale price for homes in Michigan was $268,900, reflecting a 4.6% year-over-year increase.
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Average Home Value: The average home value stood at $257,300, marking a 3.4% rise over the past year.
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Sales Volume: Approximately 9,350 homes were sold in April 2025, a 6.5% decrease compared to April 2024.
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Days on Market: Homes spent a median of 27 days on the market in April 2025, up slightly from the previous year.
📊 Market Dynamics
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Inventory Levels: There were 31,954 homes for sale in Michigan in April 2025, a 7.2% increase year-over-year. New listings totaled 13,489, up 3.1% from the previous year.
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Months of Supply: The market had an average of 2 months of supply, indicating a seller-favorable environment.
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Mortgage Rates: After peaking in 2023, mortgage rates have stabilized around 6.5–7.0%, which, while higher than pre-pandemic levels, have begun to cool, and buyers are adjusting.
🌆 Regional Highlights
Southeast Michigan
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Price Growth: Home prices in Southeast Michigan are projected to rise between 3% and 5% in 2025, driven by sustained buyer demand and limited housing inventory.
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West Michigan
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Average Sale Price: The average sale price in West Michigan rose to $365,784 in Q2 2025, marking an 8% increase from Q2 2024.
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Inventory Levels: There has been a 17% increase in the number of homes on the market compared to January 2024, providing buyers with more options.
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Days on Market: Homes are taking slightly longer to sell, with an average of 28 days on the market in January 2025, up from 24 days the previous year.
Affordable Markets
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Flint: Tops the list as the most affordable city for homebuyers, with a median home price of $61 per square foot and a high vacancy rate of 21%, partially due to the city’s historic water crisis.
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Detroit: Also ranks among the most affordable cities, benefiting from low price-to-income ratios and significant housing availability.
🔮 Market Outlook
The Michigan housing market is expected to continue its trajectory of moderate price growth and increased inventory through the remainder of 2025. While affordability remains a concern, especially with mortgage rates stabilizing around 6.5–7.0%, the increase in inventory provides more options for buyers. Regional variations will persist, with areas like Southeast and West Michigan experiencing steady growth, while cities like Flint and Detroit offer more affordable opportunities.