2026 Market Forecast: What Southwest Michigan Sellers Must Know

If you are thinking about selling your home in Southwest Michigan in the coming year, now is the time to lay the groundwork. The market is shifting. From Vicksburg and Kalamazoo to the lakeshore towns like South Haven, what worked a year ago may not work tomorrow. The good news is that with the right preparation, you can position your home for success.

What the Data Is Showing

Recent reports show the housing market in Southwest Michigan picked up meaningful momentum in March 2025. Sales increased by 12 percent compared to March 2024, and the median selling price rose by 16 percent over the same period. According to the Southwest Michigan Association of Realtors, the inventory of homes for sale also increased by 16 percent during that time, creating about a 4.4-month supply. This tells us the market is becoming more balanced. It is no longer entirely a seller’s market, but it remains active and healthy.

Across the state, the Michigan housing market has also shown steady growth. The median sale price reached approximately $284,200 in September 2025, which is up about 7.4 percent year over year. The overall message is that demand remains strong, but buyers are becoming more selective and price-conscious.

What This Means for You as a Seller

1. Pricing Is Critical. With home values rising and inventory increasing, pricing too high can stall your listing. You want to find the sweet spot that captures your home’s true value while staying competitive in the current market.

2. Presentation Matters More Than Ever. With more homes coming on the market, showcasing your property in its best light will make a difference. Fresh professional photography, clean staging, and strong curb appeal help your home stand out.

3. Timing and Strategy Win. As 2026 approaches, more listings are expected, especially from downsizing homeowners and investors looking to reposition. Starting early allows you to prepare before the spring rush and sell with confidence instead of reacting to market shifts.

4. Be Ready to Flex. The market is no longer as fast-paced as it was a few years ago. Buyers are taking more time to make decisions and expect greater value for their money. A strong, well-negotiated offer with reliable terms often matters more than a bidding war.

5. Lakeshore and Lifestyle Homes Hold Special Appeal. If your property is near Lake Michigan or in a desirable community, you may attract buyers who are motivated by lifestyle rather than price. The right marketing story can highlight those features and create emotional appeal that adds real value.

Next Steps to Take Now

• Walk through your home with fresh eyes. Imagine you are a buyer seeing it for the first time. What stands out? What could use attention or improvement?

• Request a local market snapshot for your neighborhood from a trusted Realtor. Understanding current sales data will help you make informed decisions.

• Plan your staging and photography early. Being prepared allows you to move quickly when the right opportunity arises.

• Think about your timeline and personal goals. If you plan to move, buy a second home on the lakeshore, or free up equity for another investment, set those priorities now.

• Create a marketing story that highlights what makes your home special. Emphasize lifestyle features such as location, nearby schools, or outdoor amenities, and use that narrative consistently across your marketing materials.

Listen to the Industry Expert Lawrence Yun explain the 2026 projections: Ask the Economist: Are You Confident in the Optimistic 2026 Forecast of a 14% Increase in Home Sales?

If you are thinking about buying, selling, or simply exploring your options in Southwest Michigan, I would love to help. Real estate decisions should feel clear and personal, not stressful. Reach out anytime at (269) 720-6364 or Jen@yourkzooagent.com and let’s start planning your next move together.