Southwest Michigan’s housing market posted its strongest month of 2025 in August, with more than 300 homes sold for the first time this year and average selling prices reaching two-decade highs.
According to the Southwestern Michigan Association of REALTORS, 314 homes were sold in August, down 5% from 329 in the same month last year. Year-to-date, however, sales are up 1%, with 1,863 homes sold compared to 1,845 in 2024.
“August was the first time this year that sales topped 300 homes, and sellers benefited from higher selling prices compared to last August,” said Luke Jeffries, association executive. “Prices reached their highest level in the year-over-year comparison for the past twenty years.”
The average selling price in August rose 8% to $417,616 from $387,911 in 2024, though slightly below July’s $424,997. June still holds this year’s record at $430,096. Year-to-date, the average selling price is up 14% to $419,553.
The median selling price increased 7% to $320,000 in August, compared with $300,000 a year earlier. So far this year, the median is $295,000, also up 7% from 2024.
Inventory also saw modest growth. The number of homes for sale rose 4% year-over-year, with 1,015 listings in August compared to 973 last year. That represents a 6.2-month supply, slightly higher than the 6.0 months available in August 2024. For perspective, the region had 3,757 homes on the market in August 2010.
The total dollar volume for August increased 3% year-over-year to $131.1 million. Through August, sales volume is up 15%, reaching $781.6 million.
The market continued to benefit from easing mortgage rates. The average 30-year conventional mortgage rate dropped to 5.69% in August, down from 6.72% in July and 6.35% a year earlier.
Distressed property sales remained rare, with only two bank-owned or foreclosed homes sold in August, making up 1% of all transactions. The peak for such sales was 36% in 2009.
National Housing Trends
The National Association of REALTORS reported that nationwide, existing-home sales dipped 0.2% in August from July but rose 1.8% compared with last year. Sales grew in the Midwest and South but fell in the Northeast and West.
NAR Chief Economist Lawrence Yun said declining mortgage rates and improving inventory should boost sales in coming months, though affordability challenges remain.
“Record-high housing wealth and a record-high stock market will help current homeowners trade up and benefit the upper end of the market,” Yun said. “However, sales of affordable homes are constrained by the lack of inventory.”
The Midwest was the best-performing region, with sales up 2.1% month-over-month and 3.2% year-over-year. The region’s median home price was $333,500, up 4.5% from August 2024, and 22% below the national median.
Nationally, the median existing-home price in August was $422,600, marking the 26th consecutive month of year-over-year increases.
