July '25 Market Report
Halfway Through 2025
Moving Toward Balanced Market
As we pass the midpoint of 2025, Michigan’s housing markets—whether you’re in the heart of Southeast Michigan, the Washtenaw County area, or the seasonal landscapes of Northwest Michigan—are showing signs of subtle but important shifts.
Across all three regions, the first half of 2025 maintained a strong pace, just a notch below last year’s torrid spring. In Southeast Michigan, for example, 63% of June closings came in at or above asking price—clear evidence that demand remains strong for well-positioned properties. But if you dig a little deeper, some leading indicators suggest that conditions are softening slightly, and we’re transitioning into a more balanced market.
Price reductions are beginning to rise across the board. In Southeast Michigan, they bottomed out in May and have been climbing since. The average days on market (DOM), which had held steady at 23 days, is expected to inch upward in the second half. Similarly in Washtenaw County, price reductions began increasing in May, and that trend is expected to continue.
It’s a signal to sellers—and to their agents—that buyers are getting more selective.
One of the most telling indicators is the percentage of listings selling within 10 days. In both Southeast Michigan and Washtenaw, that number peaked early and is now declining. Quick, over-asking sales will still happen, but fewer properties will attract that kind of attention as we move through the second half. Agents who help sellers set realistic expectations and prepare homes thoroughly will stand out.
In Northwest Michigan, where the market is heavily seasonal, waterfront home sales are up 2% over last year, holding flat on price—solid performance given the limited inventory. Non-waterfront homes saw a 4% gain in both sales and average price, while condos dipped slightly in sales but posted a strong 9% increase in average sale price, likely reflecting higher-end purchases in areas like Traverse City and Leelanau County.
What does this mean for the second half of the year? Well-priced, well-prepared listings will continue to attract buyers quickly—but there will be more variation. The urgency we saw in the spring will give way to a more normalized pace. Conversations with both buyers and sellers should include realistic timelines, strategic pricing, and a focus on value.
In short, the frenzy is easing, but opportunity remains—especially for agents who stay sharp and guide their clients with confidence and clarity.