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USTIN, TEXAS - MAY 22: A home available for sale is shown on May 22, 2024 in Austin, Texas. (Photo by Brandon Bell/Getty Images)

    The housing market in Michigan may be looking up this year after a challenging 2024. Broker Owner Lisa Damron of RE/MAX Perrett Associates expects a slight improvement in sales and housing movement compared to last year.

    Damron attributes the anticipated boost to pent-up demand, which has been building for years due to high interest rates and affordability issues. "Pent up demand is just crazy," she said. "At some point, it has to release itself."

    Interest rates are expected to hover around 6% in 2025, a slight decrease from previous years. While not ideal, this could lead to an easing of the "locked-in" effect, where homeowners with low-interest mortgage rates are hesitant to refinance.

    This phenomenon may encourage some homeowners to make a move, potentially increasing sales and housing movement. However, affordability remains a significant concern, particularly for those looking to buy rather than sell.

    Damron advises potential homebuyers to be patient and not wait for better market conditions. "You're never really going to outpace appreciation overall," she said, suggesting that the benefits of waiting may not outweigh the costs of delayed homeownership.