The condo market in Michigan is showing clear signs of a slowdown as rising insurance premiums and surging HOA fees continue to price out buyers, shift negotiating power, and lead to a growing number of condos selling below list price.
Across the U.S., February 2025 data shows that 68.4% of condos sold for less than their original asking price—a five-year high for the month and up from 63.3% a year prior. Michigan cities are mirroring and, in some cases, exceeding that national trend. In Detroit, Grand Rapids, and Warren, between 61% and 64% of condos sold below their initial list price, signaling a shifting market dynamic that favors buyers.
Grand Rapids experienced the sharpest year-over-year change among the three cities, with the share of below-list-price condo sales jumping 15.3 percentage points. The median original list price dropped 5.5%, from $309,900 to lower levels, although the average sale-to-list ratio remained relatively strong at 98.1%—indicating some sellers are still close to achieving asking prices despite the wider trend.
In Detroit, the share of condos selling below list increased 61.5% year over year, reflecting both a pullback in buyer demand and increased seller flexibility. Similarly, Warren saw a 62.1% rise in condos selling under asking, with a 4.5% jump from last year. The median list price for a condo in Warren dropped to $235,000, down from $255,000, and the average sale-to-list ratio stood at a lower 95%, pointing to more aggressive price reductions or concessions during negotiations.
Experts cite rising inventory, affordability pressures, and elevated mortgage rates as key factors contributing to the cooling market. As the housing market overall adjusts from the frenzied pandemic-era highs, condo units appear to be leading the way back toward pre-2020 norms, with the share of below-list-price condo sales now just 13 percentage points shy of February 2019 levels.
The combination of escalating insurance premiums, stricter building regulations, and ballooning HOA fees has especially affected condos, which tend to have more collective maintenance obligations than single-family homes. Redfin agents report that while the overall housing market has softened, condos in particularly in areas like the Midwest—have seen the most dramatic shifts.
For buyers, this cooling trend in Michigan’s condo market could represent a window of opportunity to negotiate more favorable terms. For sellers and developers, however, the current conditions highlight the need to reassess pricing strategies and address rising ownership costs that could deter would-be homeowners.