Southwest Michigan Housing Market Shows Steady Strength in September 2025
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- January 7, 2026
Southwest Michigan’s housing market closed out September with numbers that suggest buyers were still active even as the season usually begins to taper off. Local realtors said the month carried a steadier pace than many expected, considering how rates have been behaving. According to new figures from the Southwestern Michigan Association of Realtors, sales for the month came in 3% higher than last year. It wasn’t a dramatic jump, but it showed that people kept searching for homes, writing offers, and moving ahead with plans that had been in the works since spring.
What stood out most was the volume of completed sales. The region recorded 50 more closings than it did in September 2024, which worked out to a 20% increase. Even so, buyers didn’t have much more to choose from. Inventory slipped slightly to 990 homes, eight fewer than the year before. That kept the supply level at about 5.9 months, which is a far cry from 2010’s long stretch of abundant listings when more than 3500 homes sat on the market. Agents said the lighter inventory has been a theme all year, and September kept that pattern going.
The recent momentum in real estate also fits into a broader picture of people spending more across different corners of the economy. Several analysts pointed out that online shopping has climbed again, from routine Amazon purchases to larger buys on smaller ecommerce platforms. Entertainment spending has followed the same path, especially on mobile apps that offer games and streaming. That includes online casino platforms. These trends aren’t restricted to Michigan, either. People who play casino games in Arizona, Michigan, and New Jersey have all been depositing funds into their online casino accounts. Many of these sites offer a wide mix of real money titles and classic casino games like poker and roulette. Analysts note that these spending habits often lead to better performance in real estate markets, which is likely what we’re seeing now.
Prices kept pushing upward as well. The average selling price for September reached $459,203, up from $400,535 the year before. Year-to-date numbers told the same story, with the average rising to $425,115 compared to last year’s $371,896. Realtors around Berrien and surrounding counties said these increases weren’t surprising, since buyers have been moving quickly on homes that are ready for occupancy. That urgency has continued through the fall, even if the pace feels slightly calmer than the early summer surge.
Median prices moved upward, too. September’s median reached $315,000, rising from $284,750 in September 2024, which put the year-to-date increase at about 9%. Homes in the mid-range tended to see the most frequent showings, especially those located near employment hubs or within driving distance of the lake. Sellers who invested in basic updates often found that their homes gained attention faster, while properties needing deeper repairs sat slightly longer despite the tight supply.
Total dollar volume supported the idea that buyers stayed active. September recorded an 8% increase compared to last year’s figure. The first nine months of 2025 finished 3% higher overall. Some buyers adjusted their expectations because of loan costs, but many still followed through once they found homes that matched their budgets and long-term plans. Realtors said that while negotiations have become more practical, well-cared-for homes still attract steady interest, often within the first week of listing.
Distressed properties barely made a dent in the numbers. Only four bank-owned or foreclosed homes sold during September, matching August’s share of 1%. That low level mirrored the past few years rather than the difficult market of 2009, when distressed sales accounted for more than a third of September’s closings. The current figures suggest that most homeowners remain in stable situations, supported by rising equity and fewer forced sales.
Mortgage rates, however, continued to influence how buyers approached the process. Freddie Mac’s September average for a 30-year fixed conventional loan reached 6.30%, up from August’s 5.69% and slightly above last year’s 6.08%. Some buyers locked in sooner than they had planned, while others waited in case early winter brought small dips. Even with rates edging higher, the region’s sales held up better than many expected.
As the final quarter moves forward, Southwest Michigan enters the colder months with a housing market that still has energy behind it and buyers who haven’t stepped away from their plans. It will be worth watching how the next few months unfold.
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