T
he December issue of Traverse City Business News is now available online and in print, offering insights into the local real estate market for 2025.

    Real estate agents were asked about their expectations for the coming year. Jonathan Oltersdorf from Leelanau County notes that despite affordability challenges, inventory remains low with a median price increase of 5-6% and average price increase of 6-8%. He predicts modest price growth in 2025, driven by an aging buyer demographic seeking main-floor primary bedrooms.

    Holly Hack anticipates a similar trend to the national market, with existing home sales rising by over 9% year-over-year. Locally, she expects softer home prices, particularly in more affordable ranges, creating opportunities for first-time homebuyers. Interest rates are expected to stabilize around 6%, supporting affordability and demand.

    Kevin Endres from the commercial real estate sector reports a strong upward trend in the Grand Traverse region, with total square footage sold increasing by 144% and average transaction sales price rising by 35%. He expects continued activity in 2025, driven by national businesses looking to locate in the area.

    TJ Shimek notes that sale prices have leveled off over the past six months, with inventory levels increasing significantly. He predicts a more balanced market for buyers and sellers in 2025, with prices staying flat but potentially rising in the spring due to increased demand.

    Jon Zickert reports that demand has declined across all segments relative to 2023, but still exceeds supply. The condo market is currently active, but sellers need to be aware of the current market conditions to avoid overpricing their homes. He expects a rise in inventory and home sales in 2025, with home values following a similar trend.

    Ann Porter predicts a steady real estate market in 2025, driven by the region's natural resources, community amenities, and local pride. With interest rates expected to remain level, she anticipates an increase in inventory and pricing, creating a healthier balance between buyers and sellers. Climate migration is also expected to continue, driving demand for waterfront properties.