Traverse City Real Estate Market: Insider's Guide to Pricing and Trends

Traverse City and the broader Grand Traverse metro region remain a steady and appealing real estate market as we move through 2025. While the region's natural setting and local amenities continue to attract buyers, the housing market is also adjusting to broader economic trends. For those considering a purchase, sale, or investment, staying informed on current pricing, inventory, and demand patterns is essential for making sound decisions.

Traverse City's real estate market continues to evolve in 2025. In February 2025, the median sale price reached $347,000, a 3.6% increase year-over-year, pointing to a resilient market despite broader national economic fluctuations. While this growth rate is more measured than post-pandemic spikes, it reflects steady upward momentum and continued buyer interest in Northern Michigan living.

However, the pace of price appreciation has moderated. The median sale price increased slightly by 3.6% year over year within Traverse City and 6% across the metro region. The average sale-to-list price ratio remains above 96%, up about one percentage point from a year ago. While needing to price thoughtfully, sellers still see solid offers near asking in many cases.

Importantly, the number of homes sold in February 2025 increased by 33% compared to February 2024, despite dipping slightly from the previous month. This uptick in year-over-year activity points to sustained demand, particularly from buyers who have recalibrated to new market norms and are ready to act when the right property appears.

Local inventory suggests fewer options for buyers heading into the spring, though it could also be a function of seasonality. In February 2025, the Traverse City metro area had 632 homes actively listed, down slightly from January but within a healthy range. Year-over-year, however, this represents a 7.8% increase in inventory, providing buyers with more options than in prior run-ups to the spring sales season.

Conversely, new listings for the metro region declined 25% from February 2024. This slowdown in new supply could reflect seasonal listing habits or sellers still weighing their options in a price-sensitive environment. Either way, it's a signal that while overall inventory remains solid, there is a potential for limited options for buyers seeking the latest offerings.

Homes are spending more time on the market, with the longer window suggesting buyers take more time to evaluate properties—often a sign of a growing balance between supply and demand. That said, sellers who price competitively and present their homes will continue to benefit from motivated, ready-to-act buyers.

Traverse City's evolving market in early 2025 presents distinct opportunities for both buyers and sellers. Sellers still benefit from solid pricing trends and year-over-year appreciation, especially in turnkey or well-located properties—16% of homes sold above list price in the metro area, while 25% closed over asking within Traverse City.

Interest rates remain a pivotal factor in the housing market. As of mid-April, mortgage rates in Michigan hover around 6.9% for a 30-year fixed loan, with slight variations depending on loan terms and borrower profiles. These rates influence buyer affordability and can impact purchasing decisions. While higher rates may temper demand, Traverse City's desirability continues to attract buyers, particularly those seeking second homes or investment properties.

Buyers with cash or significant equity are better positioned to make competitive offers, especially in a market where well-priced homes still move quickly. For sellers, understanding that financing costs shape buyer expectations is essential. Thoughtful pricing and pre-listing preparation will be key to attracting serious interest.

Looking ahead, Traverse City remains a strong bet for real estate activity in Northern Michigan. Its natural beauty, recreational amenities, and growing appeal among remote workers and retirees provide a stable foundation for future growth.

Expect continued moderate price increases, driven by limited new inventory and strong lifestyle-driven demand. For sellers, now is the time to capture value before any significant shifts in buyer sentiment. Opportunities exist for buyers—particularly those willing to act decisively on properties that align with their long-term goals.

As always, working with a knowledgeable local agent is essential for navigating the nuances of Traverse City's seasonal and highly localized real estate trends.

Traverse City's real estate market in 2025 presents a landscape of opportunities. The increased inventory and moderated price growth offer buyers a favorable environment in which to find suitable properties. Sellers, meanwhile, should remain attuned to market trends, ensuring competitive pricing and property presentation to attract discerning buyers.

If you're interested in further insight on a Traverse City area home or investment property or seeking guidance on listing a potential home for sale, contact Blue Lake Realtors today to begin your Northern Michigan real estate journey.