The Michigan housing market in February 2025 presents a complex landscape characterized by rising prices and declining sales activity. The Median Sales Price has increased to $251,900, reflecting a year-over-year (YoY) growth of 2.2%. This upward trend in sales prices is accompanied by a more significant rise in the Median List Price, which stands at $270,100, marking a 4.9% increase YoY.

Price Per Square Foot metrics further underscore the upward pressure on housing costs. The median Price Per Square Foot has risen to $175, a 6.8% increase YoY, while the Median List Price per square foot has climbed to $182, representing an 8.0% YoY increase. These figures suggest a competitive market where sellers are capitalizing on increased demand for limited inventory.

Despite the rising prices, the number of Homes Sold has decreased to 6,733, a 7.4% decline YoY. Pending Sales have also dropped by 10.8% YoY, totaling 8,191. New Listings have seen a significant reduction, down 16.8% YoY to 7,470, indicating a tightening supply that may be contributing to the upward pressure on prices.

Inventory levels have increased slightly by 3.1% YoY, reaching 17,138 homes. However, the Months of Supply have risen by 20.0% YoY to 2.5 months, suggesting that while there is more inventory available, it is still insufficient to meet demand, leading to longer market times. The Median Days on Market have increased by 6.0% YoY to 46 days, indicating that homes are taking longer to sell.

The average sale to list ratio has decreased slightly to 97.8%, a 0.5% decline YoY, suggesting that buyers are negotiating more aggressively. The percentage of Homes Sold above list price has also decreased by 3.0% YoY to 26.8%, further indicating a shift in buyer leverage. Price Drops have increased by 0.9% YoY to 21.5%, reflecting adjustments by sellers to align with market conditions.

Additionally, the percentage of homes going off the market within two weeks has decreased by 6.6% YoY to 38.3%, highlighting a slowdown in the pace of transactions. This could be attributed to the combination of higher prices and reduced buyer activity.

Overall, the Michigan housing market in February 2025 is characterized by rising prices amidst declining sales and New Listings. While inventory has increased slightly, the market remains competitive, with longer selling times and more price adjustments. Buyers and sellers alike must navigate these dynamics carefully as they make decisions in this evolving market.