2025 SWMI & National December Housing Market

“Recapping the last ten years in the SWMI housing market we witnessed a rapid rise in sales from 2016 through 2019. Then in 2020 and 2021, with the stronger influence of Covid, finding more people working from home and home could be anywhere, created the peak years of homebuying since 2006. From 2022 through the end of this year (2025), house sales settled back to the same level as in 2014.,” stated Luke Jeffries, Association Executive,
Southwestern Michigan Association of REALTORS ® , Inc.

Jeffries continued, “While housing sales were increasing, so were the prices. In 2016, the average selling price was $199,042, and at the end of 2025, the average selling price was $492,373 for a 147 percent increase.”

The available housing inventory for sale across Allegan, Berrien, Cass, and the westerly 2/3 of Van Buren Counties was readily consumed. The inventory at the end of 2016 was 1,508 homes for sale (5.0-months supply). At the end of 2025, there were 654 houses for sale (3.9-months supply).

Mortgage rates rose from 6.13 in January, to 7.17 in April, then settled at 6.15 by the end of 2025 for a 30-year conventional mortgage.

In 2025, only in August and September did the number of houses sold in a month reach 300 sales in given month. The average selling prices peaked in December at $492,373, and the median selling price peaked in June at $324,471.

In December 2025, the number of houses sold increased 3 percent compared to December 2024 (223 vs. 216). Year-to-date, sales in 2025 rose 4 percent to 2917 from 2811 in 2024.

The average selling price in December 2025 at $492,373, was 35 percent higher than the average selling price of $363,697 in December 2024. The highest selling price in the year-over-year comparison was in December at $492,373.

The year-to-date average selling price of $433,508 climbed 15 percent over 2024 ($376,689), setting a record in the year-over-year comparison.

The median selling price for December 2025 was $295,000, which rose 13 percent above the $259,946 median selling price for December 2024.

The year-to-date median selling price of $295,000 grew 7 percent higher than the $275,000 in 2024 and set a record in the year-over-year comparison.

The median price is the price at which 50% of the homes sold were above that price and 50% were below.

Additional market notes include that the number of houses sold each year stayed above 300 from 2013 through 2022. Then, in 2023, the number of houses sold in the year dropped to 2786, followed by 2811 in 2024 and 2917 in 2025.

The yearly total dollar volume in 2025 rose 19 percent from December 2024 ($1,264,544,719 vs. $1,058,842,043).

Across all of SWMI, there were two bank-owned or foreclosed homes as part of all transactions in December 2025, which was 0.9 percent. There were 51 houses in total in 2025. For most of 2025, the percentage was 1 percent per month for bank-owned or foreclosed homes as part of all transactions.

Luke Jeffries, Association Executive, Southwestern Michigan Association of REALTORS ® , Inc. comments on expectations for 2026, “While we are cautious about making specific predictions for the housing market, we do look to trusted national data for context. Locally, Southwest Michigan’s median home price increased 7 percent in 2025, outpacing the national median price increase of 3 percent. That relative strength reflects continued demand for our region. Looking ahead, the National Association of REALTORS ® is forecasting the average mortgage rate for 2026 to be around 6 percent, which would represent an improvement from the higher average rates buyers experienced through much of 2025. Although rates dipped near that level at the end of the year, a lower annual average could help bring more buyers back into the market and encourage sellers who have been waiting on the sidelines to make a move.”

Nationally:
Existing-home sales increased by 5.1% in December, according to the National Association of REALTORS ® Existing-Home Sales Report. The Report provides the real estate ecosystem – including agents and homebuyers and sellers – with data on the level of home sales, price, and inventory.

Month-over-month sales increased in all regions. Year-over-year sales increased in the South, remained flat in the Midwest and West, and decreased in the Northeast.

Total existing-home sales, which were completed transactions that include single-family homes, townhomes, condominiums, and co-ops – increased 5.1% month-over-month from to a seasonally adjusted annual rate of 4.35 million. Year-over-year, sales improved 1.4%.

“2025 was another tough year for homebuyers, marked by record-high home prices and historically low home sales,” said NAR Chief Economist Lawrence Yun. “However, in the fourth quarter, conditions began improving, with lower mortgage rates and slower home price growth. December home sales, after adjusting for seasonal factors, were the strongest in nearly three years. The gains were broad-based, with all four major regions improving from the prior month.”

“Inventory levels remain tight,” Yun added. “With fewer sellers feeling eager to move, homeowners are taking their time deciding when to list or delist their homes. Similar to past years, more inventory is expected to come to market beginning in February.”

The median existing-home price for all housing types in December was $405,400, up 0.4% from one year ago ($403,700) – the 30th consecutive month of year-over-year price increases.

In the Midwest, existing-home sales increased 2.0% in sales month over month to an annual rate of 1 million, unchanged year over year. The median price in the Midwest was $306,000, up 3.1% from December 2024.

Total housing inventory registered at the end of December was 1.18 million units, down 18.1% from November and up 3.5% from December 2024 (1.14 million). Unsold inventory sits at a 3.3-month supply at the current sales pace, down from 4.2 months in November and up from 3.2 months in December 2024.