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Tight Supply Continues to Limit Sales in Southeast Michigan

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While inventory is expected to slowly rise in 2025, January begins with fewer listings than last year. Shortages of quality listings will continue to restrict sales.


Inventory continues to impact sales and prices in Southeast Michigan. Historically, supply levels were low in 2019, even before the pandemic created a surge in buyer demand. Although the intensity of that demand has eased over time, the lack of new listings continues to challenge buyers and constrain sales.

Buyers continue to compete for the best homes—move-in ready properties that stand out due to their condition and pricing. Prime listings sell quickly and at premium prices. In December, half of Southeast Michigan’s closed sales sold at or above their asking price and 40% of new pending sales went under contract in 10 days or less.

Homes in average or below-average condition, or those priced outside market expectations, struggle to attract buyer interest. These “tired listings” sit on the market and face price reductions. Today’s unsold active listings in Southeast Michigan have been on the market for an average of 63 days, and 35% of them have experienced one or more price reductions.

Impact on Buyers and Sellers

For buyers, the challenge is clear: the pool of desirable, move-in-ready homes is limited. Many buyers continue to wait patiently for their prize, but when that must have listing arrives, it’s probably going to ring the bell for other buyers who have also been waiting. Those ready to act fast and pay a premium will win.

For sellers, presentation and pricing are critical. Homes that are staged, priced competitively, and move-in-ready will continue to attract strong offers, while others may need adjustments to stand out in this competitive environment. Inventory has been slow to rise in Southeast Michigan markets. While we expect some supply relief in 2025, the shortage of prime listings that sell quickly will continue. We’ll see inventory and market times slowly rise for properties in average or below average condition.

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