Northwest Michigan First Quarter Highlights

The Northwest Michigan housing market remains steady heading into the spring, with only a slight 2% year-over-year decline in closed sales through the first quarter. Buyer interest has not wavered, but the market continues to grapple with a mismatch between available inventory and the quality homes today’s buyers are seeking.

New listings increased modestly by 3% compared to Q1 2024, and total inventory is up 13% year-over-year—and 32% versus 2023. Much of that increase, however, is attributable to listings that carried over from the previous year, rather than a true influx of fresh, move-in-ready homes. As a result, buyers remain selective and focused, favoring listings that are well-prepared and properly priced.

Prices continued their upward climb, with the average sale price rising 4% year-over-year. Market pace also shows signs of strength. In March, 44% of homes sold at or above asking price, with 19% selling over list. That figure is expected to increase throughout the second quarter, as the seasonal uptick in demand accelerates competition for the best homes.

While the Northwest region has more inventory on paper, the supply of desirable homes remains limited. Sellers who present their homes well— both in condition and pricing—can still expect strong interest and potential bidding scenarios. Buyers, on the other hand, should be prepared to act decisively, as delays can lead to missed opportunities in this still-competitive environment.

Despite broader economic distractions, housing demand in Northwest Michigan continues to outpace the supply of high-quality listings. The spring and summer months are likely to bring further momentum, with pricing and pace favoring homes that meet today’s buyer expectations.