Southeast Michigan Housing Report February 2025

Every year, we’re bombarded with headlines warning

how rising interest rates, inflation, property taxes,

or new regulations will wreak havoc on the housing

market. Yet, despite the challenges of the past few

years, Southeast Michigan’s market has held steady.

Sales remained level, inching up about 1%, while home

values continued their climb—up 6% last year and 8%

in 2023.

With potential tariffs, layoffs, and other economic

shifts on the horizon, sensationalized news will

continue to stir skepticism. However, history

has shown that strong demand and tight supply

consistently carry the market through uncertainty. The

road ahead may have bumps, but the fundamentals

remain solid.

Looking at the chart above, everything starts with new

listings. Since the pandemic, buyer demand has stayed

strong enough that fresh listings act as the throttle

driving the market. New listings (red columns) will

climb through spring, level off in summer, and taper

in fall. Under-contract sales (blue columns) closely

follow,as eager buyers snap up the best homes as

soon as they hit the market. The price-per-squarefoot

line ($/SF) peaks with new listings, reflecting

competition for prime properties. The year-end price

dip doesn’t indicate falling home values. Instead, it

reflects the seasonal shift in inventory, as the most

desirable homes typically sell earlier in the year. Closed

sales (green columns) typically follow under contracts

(UCs) by about a month, reflecting the standard 30-

day closing timeline. In the first half of the year, UCs

usually outpace closed sales, while the reverse tends

to happen in the second half.

By understanding these seasonal trends and market

fundamentals, buyers and sellers can make informed

decisions—no matter the headlines.

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