The housing market outlook for 2025 in Southwest Michigan, particularly in areas like New Buffalo, Union Pier, Lakeside, Harbert, and Sawyer, remains positive with expectations for continued gradual growth in home prices, driven largely by strong demand for vacation homes and limited inventory.
Key Factors Driving the Market
- Vacation Home Demand: These areas, often referred to as "Harbor Country," are popular as vacation and second-home destinations, especially for residents from nearby metropolitan areas like Chicago. This demand is expected to persist in 2025, pushing home prices upward as inventory remains tight.
- Limited Inventory: Inventory levels in Southwest Michigan have dropped significantly, leading to a competitive market with fewer homes for sale. This supply-demand imbalance is likely to result in modest price increases across the region through 2025.
- Luxury Market: In areas like New Buffalo, Union Pier, Lakeside, Harbert, and Sawyer, where luxury lakefront properties are in high demand, prices are expected to continue rising. Buyers seeking properties on or near Lake Michigan, including those looking for investment or vacation homes, will find stiff competition.
Overall, the 2025 outlook suggests a seller's market especially in lakefront and vacation-heavy areas, with gradual price increases and continued strong demand for both primary and secondary homes. However, limited inventory will likely keep the market competitive, making it essential for buyers to act quickly when properties become available.
Related: Interactive Charts - Harbor Country Market Statistics