Will the Real Estate Market Crash? A Southwest Michigan Perspective

It’s one of the most common questions on everyone's mind: “Will the real estate market crash?” While no one can predict the future with certainty, most experts believe a crash is unlikely. Instead, what we're seeing is a shift toward a more balanced and sustainable housing market.

National Expert Outlook

• According to analyses like GOBankingRates, housing prices are expected to rise modestly in 2025, not collapse, thanks to strong demand and tight inventory

• Many economists forecast slower but stable growth, not a downturn, due to continued supply constraints and economic resilience.

• Institutional forecasts like Forbes emphasize that the likelihood of a housing market crash in 2025 remains very low

What’s Happening in Southwest Michigan?

Kalamazoo County

• As of mid 2025, the median home sale price stands at around $269,400, reflecting a consistent 4.6% year-over-year increase.

• Inventory is up about 26%, with 289 homes currently listed, offering more options for buyers.

Kalamazoo City

• Home prices are slightly down, median sales price in June was roughly $197,500, a 2.2% decline compared to last year.

• Still, homes are selling fast, in just 8 days, on average, compared to 6 days last year.

Battle Creek

• Home prices are holding steady, with a median sale price of about $188,000, a 0.5% drop year-over-year.

• Homes are taking longer to sell, 17 days from listing to sale, giving buyers a bit more negotiating room.

Regional Overview

• Data for the broader Southwest Michigan region shows a significant 15.4% jump in median sold price in May 2025 over the previous year, indicating strong value retention.

What It All Means for You

For Buyers

• The market is cooling, not crashing. With more homes listing and sales slowing slightly, you have more choices and negotiation power, especially in locales like Kalamazoo and Battle Creek.

• Still, home prices are not collapsing. Moderate appreciation or stability is more likely than a steep drop.

For Sellers

• Your home’s value remains strong, especially in Kalamazoo County, where prices continue to trend upward.

• However, expect a longer timeline and a more competitive market, pricing your home well and working with a pro like the Keefer Fischer Team is key.

Final Takeaway

A crash is unlikely, instead, expect a gradual shift toward moderation. The market is balancing, not collapsing.

If you're considering buying or selling in Kalamazoo, Portage, Mattawan, Battle Creek, or anywhere in Southwest Michigan, our team is here with up-to-date insights and expert guidance.