Home prices in Southwest Michigan reached record levels in 2025, even as sales activity remained below the peaks seen during the pandemic housing surge, according to new data from the Southwestern Michigan Association of REALTORS®.
Association Executive Luke Jeffries said the regional market has gone through several distinct phases over the past decade.
“Recapping the last ten years in the SWMI housing market we witnessed a rapid rise in sales from 2016 through 2019,” Jeffries said. “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.”
While the pace of sales moderated, prices continued climbing sharply. The average selling price rose from $199,042 in 2016 to $492,373 at the end of 2025 — a 147% increase, Jeffries said. The year-to-date average selling price in 2025 reached $433,508, up 15% from 2024 and a record high.
The median selling price for the year was $295,000, a 7% increase over 2024 and also a record. In December alone, the median price was $295,000, up 13% year over year.
Sales showed modest gains. In December 2025, 223 homes were sold, up 3% from 216 in December 2024. For the year, sales rose 4% to 2,917 transactions, compared with 2,811 in 2024. However, annual sales totals remain below the more than 3,000 homes sold each year from 2013 through 2022.
Housing supply remained tight across Allegan, Berrien, Cass and the western two-thirds of Van Buren counties. Inventory fell from 1,508 homes for sale at the end of 2016 — a five-month supply — to 654 homes at the end of 2025, representing a 3.9-month supply.
Mortgage rates fluctuated during the year, rising from 6.13% in January to 7.17% in April before settling at 6.15% by year’s end for a 30-year conventional loan.
Jeffries said Southwest Michigan outpaced national price growth. “Southwest Michigan’s median home price increased 7 percent in 2025, outpacing the national median price increase of 3 percent,” he said, adding that continued demand is supporting the region’s relative strength.
Looking ahead, he pointed to projections from the National Association of REALTORS® that mortgage rates could average around 6% in 2026. “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,” Jeffries said.
Nationally, existing-home sales rose 5.1% in December to a seasonally adjusted annual rate of 4.35 million, according to NAR. Chief Economist Lawrence Yun said December marked the strongest pace of sales in nearly three years after seasonal adjustments, as mortgage rates eased and price growth slowed.
The Southwestern Michigan Association of REALTORS® represents real estate professionals and related service providers in Allegan, Berrien, Cass and Van Buren counties.
