Michigan's housing market is shifting toward buyers this fall — not because prices are falling, but because inventory is finally growing. Listings are up in both metro Detroit and West Michigan, homes take slightly longer to sell, and median prices are still inching higher. The catch: mortgage rates are back above 7%, so the extra choice comes with a bigger payment.
Is it a buyer's or seller's market in Michigan right now?
A seller's market that is softening. Metro Detroit — Livingston, Macomb, Oakland and Wayne counties — hit 3.0 months of supply in August 2026, up from 2.8 months a year earlier (Realcomp II Ltd., reported by The Detroit News, Sept. 29, 2026). Balanced is closer to six months, so sellers keep the edge — but buyers have real negotiating room for the first time in years.
4,282 homes sold in August 2026, down from 4,578 in July and just under 4,295 in August 2025
Median price $337,500, up from $332,500 a year earlier
26 days from listing to signed contract, vs. 24 a year ago
Source: Realcomp II Ltd. via The Detroit News, Sept. 29, 2026. "Month over month we again saw a slight decrease in median sales prices while the inventory uptick continued," said Realcomp CEO Karen Kage.
West Michigan: listings up 12%, prices still up
Allegan, Ottawa and Muskegon counties, August 2026 (West Michigan Lakeshore Association of REALTORS®, August 2026 report):
Median price $369,000, up 2% year over year
Active listings 1,170, up 12%
Closed sales 522, down 7%
Total volume $234 million, down 4.4%
By county: Ottawa median $415,000 (down 8%), Muskegon $275,000 (up 3%).
Freddie Mac's Primary Mortgage Market Survey put the 30-year fixed at 7.03% for the week ending Sept. 24, 2026, up from 6.95%; the 15-year rose to 6.42% from 6.26%. The next PMMS release is Oct. 1, 2026. Chief economist Sam Khater said the market "remains supported by a solid labor market and an economy that is growing at a healthy rate."
In dollars: on a $337,500 home with 10% down (a $303,750 loan), principal and interest at 7.03% runs about $2,027 a month — roughly $17 more than at 6.95%. (LM Realty calculation; taxes, insurance and mortgage insurance not included.)
Statewide context: Zillow's ZHVI put Michigan's typical home value at $266,292 in August 2026, up 2.5% year over year, and Kalamazoo County at $278,141, up 2.8%. Honest caveat: ZHVI is a modeled estimate of typical value, not a closed sale price, and it lags several weeks. Use it for direction, never to price your home.
Is now a good time to buy a house in Michigan?
If your income is stable and you plan to stay five years or more, yes — selection is the best it has been in years. Rates above 7% hurt, but you can refinance later; you cannot recreate today's inventory.
Are home prices falling in Michigan?
No. Metro Detroit's median rose to $337,500 in August 2026 from $332,500 a year earlier, and West Michigan's rose 2% to $369,000. Growth has slowed and some counties are negative (Ottawa, down 8%), but there is no statewide decline.
What is the average mortgage rate right now?
7.03% on a 30-year fixed and 6.42% on a 15-year fixed for the week ending Sept. 24, 2026 (Freddie Mac PMMS). Your quote depends on credit, down payment and loan type, and rates move daily.
How long does it take to sell a home in metro Detroit?
About 26 days from listing to signed contract in August 2026, up from 24 a year earlier (Realcomp II via The Detroit News).
Can I still get down payment help in Michigan?
Yes. MSHDA's MI 10K DPA loan offers up to $10,000 with no interest and no monthly payment, and a separate first-generation program offers up to $25,000 on homes priced at or below $224,500. Funding and eligibility change — confirm current terms with MSHDA, or ask us to check for you.
🏠 Ready to use this market instead of waiting it out?
LM Realty works Grand Rapids, Wyoming, Kent and Ottawa counties, Kalamazoo and the lakeshore every day — and we will tell you honestly whether a home is priced right before you fall in love with it. Contact us for a free, no-pressure consultation.
