TRAVERSE CITY — Northern Michigan’s housing market is showing greater resilience than much of the country as mortgage rates ease and demand remains steady in scenic, job-stable regions, according to Lawrence Yun, chief economist for the National Association of Realtors.
Speaking during an event for the Women’s Council of Realtors- Northern Michigan- in Traverse City, Yun said local home sales increased even as national sales remained flat. “Even though nationwide there was a 0% change in home sales, locally, you had a 7% increase in the net sales,” Yun said, citing data submitted for the Traverse City market.
Yun said the region continues to benefit from lifestyle appeal, second-home interest, and hybrid work arrangements that allow buyers to live farther from major job centers.
“People want to be in an attractive location near the lakes, near fresh air,” he said, adding that Northern Michigan remains appealing to buyers seeking quality of life.
While home prices have continued to rise, Yun said the past three years were marked by sharply reduced transaction activity due to higher interest rates. “For the past three years, we have sold softer real estate numbers — not in terms of prices, but in terms of business opportunity, unit transactions,” he said.
Mortgage rates, however, have recently declined. Yun said rates averaged about 6.2% late last year and briefly dipped to 5.99%, “That would be the lowest interest rate in three years,” he said.
Yun said lower rates are helping stabilize the market. “Any of you who had clients one year ago who did not get a mortgage — try again,” he said. “They may be able to qualify now at 6%, compared to 7% one year ago”.
He said inventory is also slowly improving in Northern Michigan as homeowners who once planned to hold onto low-rate mortgages are forced to sell due to life changes. “Stuff happens in life,” Yun said. “Over time, more inventory” enters the market.
Yun said Michigan overall has seen modest job growth — about 2.7% above pre-COVID levels — but noted that Traverse City has shown steadier employment trends than many parts of the state. “Michigan is in a tough spot, but you are in a better spot,” he told the audience, pointing to consistent seasonal growth in the region.
Looking ahead, Yun said he expects national home sales to rise by about 14% in 2026, with Northern Michigan positioned to continue outperforming broader trends if mortgage rates remain near 6%.