First Quarter Highlights
The Southeast Michigan housing market continues to show resilience as we move through the early months of 2025. Despite ongoing economic noise and cautious consumer sentiment, buyer activity has remained strong relative to supply.
Year-over-year, closed sales dipped 5% in the first quarter, driven in part by a limited supply of desirable homes. New listings fell 11% compared to the same period last year, tightening inventory at a time when demand remains steady. While total inventory is up 11% from a year ago—and 8% compared to 2023—much of that increase stems from lingering carryover from late last year. Homes that are move-in ready remain in short supply.
Pricing, however, tells a more optimistic story. The average sale price rose 5% year-over-year, underscoring the strength of buyer competition in key price ranges and neighborhoods. Sellers of well-prepared homes are continuing to see favorable results: 56% of March sales closed at or above the asking price, with multiple offers still a frequent occurrence. That share is expected to climb into the spring and summer months.
While some buyers are navigating higher interest rates and macroeconomic headwinds, the urgency to buy remains strong—especially for homes that show well and are priced appropriately. The takeaway for sellers: preparation and presentation matter more than ever. For buyers, timing and decisiveness will be key in navigating this competitive market.
As we look ahead to the second quarter, all signs point to continued demand outpacing supply. Price appreciation may moderate slightly, but multiple- offer situations and fast market times will remain the norm in most areas across Southeast Michigan.
