We've all heard the old adage that "all real estate is local," but the latest 2025 data from Northern Michigan proves this point with remarkable clarity. A closer look reveals surprisingly divergent trends across neighboring counties, painting a much clearer picture than regional headlines might suggest. Here are three key takeaways that show what's really happening in the "Up North" market.
The Busiest Market Isn't Necessarily the Strongest
A fascinating paradox emerged when comparing Grand Traverse County and Leelanau County. Grand Traverse was the region's busiest market by a wide margin, seeing 1,359 sales-a 9.2% increase over the previous year. Despite this surge in activity, its median sold price actually fell by 1.7% to $425,000. In stark contrast, neighboring Leelanau County saw an even faster rate of sales growth at 13.0%, combined with a significant 10.7% increase in its median sold price, which climbed to $670,000.
While strong demand certainly exists in Grand Traverse, the data suggests it is meeting a level of supply or price sensitivity that gives buyers slightly more leverage. Meanwhile, the market dynamics in Leelanau clearly favor sellers. This is reinforced by homes selling faster (median days on market fell to 50 days) and for closer to asking price, with the sale-to-list ratio climbing to an impressive 98.70%.
Buyer Bargaining Power is Surging in Key Areas
The "Sale-to-List" price ratio, which measures the final sale price as a percentage of the last list price, is a powerful indicator of negotiating power. In several Northern Michigan counties, this metric reveals a dramatic increase in buyers' ability to secure favorable terms. The most striking example is Kalkaska County-the only county where sales declined (-1.9%)-where the sale-to-list ratio fell by a massive 6.04 percentage points to just 90.66%. This means the average home sold for nearly 10% below its final asking price.
However, this buyer leverage in Kalkaska reveals a deeper market paradox. While overpriced homes required steep discounts, the median time on market for properties that did sell dropped by an incredible 15 days. This points to a tale of two markets: correctly priced homes are moving faster than ever, while overpricing is being severely punished by buyers. This broader negotiation trend is also visible in Antrim and Benzie counties, which saw their sale-to-list ratios fall by 2.74 and 2.43 percentage points respectively, signaling that sellers across the region must be prepared for serious negotiation.
A Pricing Reality Check May Be Underway
Comparing what homes have recently sold for versus what is currently for sale reveals a lot about market psychology. In several counties, a significant gap has emerged between the median sold price for all of 2025 and the median active list price as of January 2026. This gap is most pronounced in Benzie County, where the median sold price last year was $412,000, yet the median price of homes currently for sale is a staggering $685,000.
The consequence of this disconnect is clear: the median time on market for active listings in Benzie is 116 days, more than double the 52 days it took for homes that actually sold in 2025. Overpriced homes are sitting, while realistically priced properties are moving. A similar trend is visible in Leelanau County, where the 2025 median sold price of $670,000 is well below the current median active list price of $744,450, suggesting many sellers have expectations that recent market history does not support.
A Market of Micro-Climates
Ultimately, the 2025 data confirms that the Northern Michigan real estate market isn't one single story. It's a collection of distinct "micro-climates," each with its own rules, opportunities, and challenges for buyers and sellers. For anyone looking to buy or sell 'Up North,' the most important question isn't "How's the market?" but rather, "How's the market on this specific lake, in this particular county?"
