The December issue of The Ticker's sister publication, the Traverse City Business News, is now online and on newsstands.

Among the many stories in this action-packed issue is one that focuses on the year ahead in the local real estate market. TCBN staff asked several real estate agents to weigh on on what they expect to see in the coming year.

Below is a snippet of that story. For much more (including a variety of stories on nonprofits and philanthropy and several columns from local experts) be sure to pick up a copy or subscribe today! 

What trends or developments (in sale prices, volume, demand, etc.) do you expect to see in local real estate in 2025?

Jonathan Oltersdorf: Affordability challenges and rising living costs in 2024 should have slowed the real estate market, but we just didn’t see that in any significant way. Inventory remains historically low, with Leelanau County still at 1/3 of pre-Covid levels. Year-to-date our median price has increased by 5-6% and the average price has increased 6-8%. Looking ahead to 2025, volume may dip slightly, but I’d expect prices to grow modestly at a lower rate, aligning with inflation. Nationwide, the average homebuyer age has risen by seven years, a trend I also see locally. Homes with main-floor primary bedrooms are in high demand, driven by an aging buyer demographic. Notably, 47% of this year’s sales in Leelanau were cash purchases, compared to 35% in GT County. Our market has remained resilient, and I expect more of the same in 2025 with moderate price growth and strong cash purchases offering continued stability.

Holly Hack: Interest rates and demand will continue to play a pivotal role in shaping the housing market in 2025, both nationally and locally. Nationally, existing home sales are projected to rise by over 9% year-over-year, with new home sales expected to jump by 11%. Locally, I anticipate a similar trend as home prices continue to soften, particularly in more affordable price ranges. This shift will likely create increased opportunities for first-time homebuyers, who have faced significant challenges over the past few years, especially those relying on government loans. Interest rates are expected to stabilize, likely settling in the low 6% range, which should further support affordability and demand. In Traverse City, we’re seeing a noticeable cooling in the Airbnb market, especially downtown, where saturation levels appear to have been reached. This cooling may redirect investment attention back toward long-term housing options, further impacting local demand positively.

Kevin Endres: According to the trajectory we have seen through the third quarter of 2024 vs. the third quarter of 2023, the commercial market is trending upward across the board as it relates to total square footage sold (up 144%), total volume sold (up 95%) and average transaction sales price (up 35%). We expect to see continued activity and interest in the commercial market in the Grand Traverse region in 2025. We are seeing a strong demand in our market from national businesses looking to locate in our region, which includes anywhere from small retailers, quick service restaurants or suppliers and regional distribution companies like Amazon. While we only handle commercial real estate and development land, we do see a continued strength and demand for land for future multi-family developments.

TJ Shimek: Sale prices have started to level off the last six months of 2024. Homes are sitting for longer and that is okay, as inventory levels have come up significantly from last year. I expect inventory levels to continue to creep up a bit in 2025, making it an even more balanced market for buyers and sellers. The market we were in the last four years was not sustainable, and we are in a much more "healthy" market currently. I expect prices to stay pretty flat in 2025, but we do always see an uptick in prices in the spring and a more competitive buying market as a lot of buyers come out of hibernation after the winter, ready to look for a home again. This creates a higher demand, therefore you see more multiple offer situations in the spring typically. This is what happened in 2024 after the market hit a wall in October of 2023 then it came back like gangbusters around March of this year.

Jon Zickert: Demand has declined across all segments relative to 2023, but in historical terms, demand still exceeds supply across all price ranges. The condo market seems to be the most active segment in the last few months, but in most areas, although multiple offers are not as plentiful, they are still happening. Sellers do need to be aware that because demand has slowed, many homes will be overpriced for the current market. Next year, we expect the number of homes for sale to rise 5-10%, the number of home sales to also rise 3-5% and home values follow the same 3-5%.

Ann Porter: We are so fortunate to live in such a beautiful area full of natural resources, community amenities and local pride, and I expect our amazing region to continue to be a popular landing place for both out-of-towners as well as current residents upsizing or downsizing. Based on this, 2025 should offer a steady real estate market, with waterfront always being the most sought-after property type. With interest rates expected to remain level and sellers wanting to capitalize on their equity, inventory and pricing will increase to a healthy balance. We are seeing a lot of climate migration, where purchasers are leaving an area of more drastic climate swings and effects than typical, which will continue to increase demand. This will continue on the trend of a seller’s market, but at a much healthier definition than what we saw during Covid.